Liability protection
Would a general permission/liability release form be enough to protection or should one look into insurance and an LLC? For big productions I know they need to have copious amounts of coverage, but for a youtube short, is it needed?
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Geez... that's a hard one because there are so many variables and personal considerations that enter into that decision. You definitely want a good permission/liability agreement so that someone cannot come back later and try to blame you for global warming and the common cold. Insurance is another deal altogether. How much you want is dependent upon how risk-averse you are. I tend to be a minimalist when it comes to insurance, but then I'm pretty careful and a bit conservative. That comes from being old, I guess.
A lot of that decision depends upon the environment you're going to shoot in. If you're shooting flower in a park you'll need a lot less legal protection than if you're shooting construction on the 35th floor of an unfinished skyscraper. This decision will be hard for someone else to make since you need to carefully consider all of the risks present in your shooting situation, and not just the obvious ones. It's the weirdo ones that can come out of the weeds that can really bite you on the bottom. You might want to chat this one up with others on your crew familiar with the situation. In the end, there's merit in the old saw, "it's better to be safe than sorry." |
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Large companies I've done consulting work for (not video related, though) have typically required a business liability insurance policy of at least $1 Million before I could work on their premises or on the premsies of their customers. And they needed to see a copy of the policy before I could start work.
The only equipment I was using was a notebook PC and a paper notebook and a pencil. |
Jim: it's the pencil they're worried about...
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Actually, I think they were more worried about me than about the pencil!
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Insurance provides indemnification, both against loss and the costs associated with defending a law suit. For the small business owner, law suit defense, even of a non-meritorious suit, could be financially disastrous. An LLC (if properly administered) ensures that you will not be held personally liable for any liability incurred by the LLC, i.e. if your LLC gets sued and loses, your personal assets (house, car, etc.) are protected. Note, however, than an LLC is not a magic wand. You must "respect the corporate formalities" for the shield to be effective. This means that you can not mix personal and corporate funds, (generally) use your gear or company truck for personal use, etc. Often, a law suit will name both the LLC and its principal as defendants. The plaintiff will do everything in his power to "pierce the corporate veil" and find a basis for reaching the principal's personal assets in a judgment. Hope this helps. |
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