”Insurers writing policies in the future are going to have language that is explicably excluding liability pertaining to an outbreak like this year,“ lawyer Kent J. Schmidt says
As Hollywood looks to resume film and TV production in the coming months, one major roadblock continues to be whether insurance and bonding companies will cover the risks associated with potential COVID-related illnesses and pandemic-related shutdowns.
While producers have long made financial allowances for shutdowns and reshoots in their overall budget, insurance coverage on this type of disruption is in flux in the midst of the coronavirus pandemic.
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Click Here Already a subscriber? LoginElsa Ramo, managing partner of Ramo Law, whose firm represents producers and content creators, estimated that overall insurance and bonding costs of a COVID-protected production could be at least 15-20% higher, while other insiders said that it’s far too soon to determine the potential cost of future coverage — if it’s even available at all.
“Most insurance companies are going to be sure that if it’s a type of pandemic similar to this, whether by duration or whatever the next outbreak is, business interruption policies are going to have much higher language that will make it clear that there is no coverage,” Kent J. Schmidt, a partner at the international law firm Dorsey & Whitney who specializes in business litigation, told TheWrap.
Standard “business interruption” clauses in insurance policies generally don’t apply to pandemics. These clauses usually protect against, say, water main breaks, where production is shut down for a week or two and production can’t continue as planned. Because disease can go on for an undefined amount of time and is unpredictable, this clause wouldn’t protect an employer even when productions have to be shut down if a key cast or crew member becomes infected and needs to quarantine — or if the local government orders a new community-wide shutdown (as has happened overseas when new cases have flared up).
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Insurance companies have avoided including pandemics in coverage because the severity of the exposure is too “unpredictable” and too difficult to price, State Farm insurance agent Stephan Buckley, told TheWrap in March. Already, the industry is facing substantial claims from productions forced to shut down in March. Brian Kingman ,of Gallagher Entertainment, told The Hollywood Reporter that his clients have filed over 400 claims ranging from $200,000 to $5 million each.
The language of existing contracts may be vague enough for insurers to pay out some claims, Schmidt said.
“The policies are usually interpreted in favor of the insured. If there is an ambiguity of whether there is coverage, it cuts into the favor of the insured,” he said. “The insurer is usually known for writing policies using language that’s vague to their benefit.”
Policies tend to have clauses that account for “an Act of God” that gets invoked in case of natural disaster, Arthur Silbergeld, a partner at Thompson Corburn LLP who represents employers in litigation and labor relations matters, said.
“Whether this is a natural disaster is very dependent,” he said. “Insurance companies will fight it to the tee. Any production company that is going to start up ought to call their insurance company and find out what happens if and whether the shutdown itself will be business disruption under the policy and if the answer is no, which I would expect, ask if there’s a separate policy that can be purchased. But I expect there is no such policy.”
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And given insurance companies’ potential losses under existing contracts, any new contract is likely to be much more explicit about the substantial risks to film and TV shoots in the current pandemic climate.
“Insurers writing policies in the future are going to have language that is explicably excluding liability pertaining to an outbreak like this year,” Schmidt said. “It’s an undetermined amount of money for an undetermined amount of time.”
And the risks to starting (or resuming) any new project in the current climate are significant.
“Let’s say a producer signs a contract that they are renting this place for shooting a movie, and there’s no leeway: There’s no out for them if they have to shut down because it’s an obligation and they have to pay upfront,” Schmidt said. “That’s money spent, and that’s before any issues with respect to anyone being injured — they just have to shut down because that’s the way it is.”
Insuring against that kind of event won’t come cheap.
“They can say, ‘Oh, you want that policy? That’s going to cost you X, but we’re only going to kick in money after $1 million of losses, and they can only be these kind of losses,” Schmidt said.
While big studios and networks could presumably shoulder that cost — they will earn that money back upon the film’s release — for smaller companies or independent producers, “there is no way they could feasibly and responsibly resume production without insurance,” Schmidt added. It all depends on the production costs. For example, uber-producer Jason Blum is working on a plan to shoot a film on the Universal Studios backlot with a small cast and crew that would be quarantined together at a nearby hotel, a person with knowledge of the production said. Blum is known for low-budget projects so a $6.5 million film isn’t too risky for the companies to shoulder financially.
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Similarly, last month, Tyler Perry outlined a plan to resume production on two sitcoms at his Atlanta studios by testing and quarantining the cast and crew on his massive lot, complete with housing, for the duration of the shoot. His shows film entirely at his studios and can do a 22-episode season in under three weeks, he said.
“There are glimmers of hope and first to trial. Tyler Perry’s announcement is one approach — his idea of putting everyone in the same ecosystem and whatever is not covered in insurance, there is an assumed risk that they’re all going to take,” Ramo said, adding that a lot of these issues will be “determined on a project-by-project basis.”
No matter when and how production manages to resume, there is no escaping the increased liability all around.
“Everyone has to walk into a production environment in the middle of a contagious virus without a vaccine with a certain level of risk,” Ramo said.
Silbergeld agreed that the burden is shared widely.
“It’s a risk to the employee coming back; it’s a risk for the employer of being sued; and it’s a risk to the insurance company of having a claim that has to be litigated,” he said. “The employer has the obligation to maintain a safe work space. If they took temperatures, sent people home who had any symptoms at all, it’s going to be difficult for the employer to be liable. If you start production and aren’t doing any safety measures, then that’s a different story.”
All the Movies Suspended or Delayed Due to Coronavirus Pandemic (Updating)
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Disney/MGM/Warner Bros.As the coronavirus continues to spread, an increasing number of movies are delaying or suspending production. As the number of impacted movies grows, TheWrap felt it would be most informative to keep a running list.
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Photo credit: Universal"No Time to Die"
MGM, Universal and Bond producers Michael G Wilson and Barbara Broccoli announced that after careful consideration and thorough evaluation of the global theatrical marketplace, the release of "No Time to Die" will be postponed until November 2020.
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Photo credit: Paramount
"A Quiet Place Part II"
Director John Krasinski announced on Instagram that the horror sequel's March theatrical release would be delayed amid the growing spread of the coronavirus around the globe. Paramount has now dated the film for release on Sept. 4.
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Photo credit: Sony
“Peter Rabbit 2: The Runaway”
"Peter Rabbit 2: The Runaway" was one of the first films delayed as part of the coronavirus, with Sony pushing its late March release to Aug. 7. But as the shutdowns continued, Sony juggled its release slate so that the family film will now open Jan. 15, 2021.
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Photo credit: Universal
"Fast and Furious 9"
The release of the next “Fast & Furious” installment, “F9,” has been delayed from May 22 to now opening on April 2, 2021.
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Paramount/Netflix
"The Lovebirds"
Paramount postponed the April 3 theatrical release of the romantic comedy “The Lovebirds" starring Issa Rae and Kumail Nanjiani after its SXSW premiere was also canceled. Netflix then acquired the film from Paramount and debuted it on May 22.
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Photo credit: Paramount
"Blue Story"
Paramount postponed the theatrical release UK gang film "Blue Story," which was set to open on March 20. The film then premiered on digital on May 5.
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Strand Releasing
"The Artist's Wife"
Strand Releasing and Water's End Productions delayed the limited release of the Bruce Dern and Lena Olin film "The Artist's Wife." The film was meant to open in New York on April 3 in Los Angeles on April 10 and in San Francisco on April 17. No new release date has been set.
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IFC Films
"The Truth"
Hirokazu Kore-eda's film "The Truth" from IFC Films will postpone its March 20 domestic release to now open at an unspecified date in summer 2020. The film is in both French and English starring Catherine Deneuve, Juliette Binoche and Ethan Hawke and has already opened in some overseas markets. IFC Films has set a new release date for July 3.
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Disney
"Mulan"
Disney postponed the release of its blockbuster, live-action remake of the animated film "Mulan" from March 27 to now open on July 24. The shift was part of a big shuffle of films Disney made to its release calendar on April 3.
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20th Century Studios
"The New Mutants"
After numerous delays, 20th Century's X-Men spinoff "The New Mutants" was also pushed back by Disney "out of an abundance of caution." The film from director Josh Boone was meant to open April 3. The film will now open Aug. 28, 2020.
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Searchlight Pictures
"Antlers"
"Antlers," an indie horror film from director Scott Cooper starring Keri Russell, was also pushed back by Disney and Searchlight Pictures from its April 17 release. No new release date has been set.
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Marvel
"Black Widow" and the MCU
In a restructuring of its entire release calendar, Disney pushed back every Marvel movie in the cinematic universe. "Black Widow" was meant to open on May 1, but will now shift back to the slot previously occupied by "The Eternals" on Nov. 6.“Eternals” is moving to February 12, 2021, “Shang-Chi and The Legend of the Ten Rings” will open May 7, 2021, and “Doctor Strange in the Multiverse of Madness” is shifting to Nov. 5, 2021. The changes also affected Marvel's slate for 2022 with “Thor: Love and Thunder” opening Feb. 18, 2022, “Black Panther 2” shifting to May 8, 2022, and “Captain Marvel 2,” which was not previously dated, is now set for a July 8, 2022 release.
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Untitled Elvis Movie
Baz Luhrmann's Elvis Presley biopic starring Austin Butler ceased production in Australia after co-star Tom Hanks (playing Presley manager Col. Parker) and his wife, Rita Wilson, tested positive for COVID-19. The planned release date was also bumped back one month to now open Nov. 5, 2021.
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Paramount Pictures
"Mission: Impossible 7 and 8"
In late February, Paramount's action sequel halted production in Italy on the Tom Cruise action sequel. Paramount on April 24 also bumped the release dates of both films, with "M:I 7" moving to November 19, 2021 from its July 2021 release date, and the eighth film also moving back to Nov. 4, 2022 from its summer release.
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"The Nightingale"
Sony postponed the Budapest shoot of the drama starring real-life sisters Dakota and Elle Fanning.
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"Birds of Paradise"
Amazon Studios halted production in Budapest on director Sarah Adina Smith's ballet drama.
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Universal Pictures
"Jurassic World: Dominion"
Universal put a pause on production on the third "Jurassic World" in March after four weeks of shooting had been completed in the UK for a 20-week shoot. Production will resume on July 6, and the film is expected to be released on June 11, 2021.
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"Flint Strong"
Universal also halted production on this boxing biopic starring Ice Cube and Ryan Destiny.
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"Man From Toronto"
Sony delayed the start of production on the action comedy starring Kevin Hart and Woody Harrelson (who stepped in to replace Jason Statham).
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"Official Competition"
Spanish studio Mediapro suspended production on the new comedy starring Penélope Cruz and Antonio Banderas.
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Warner Bros.
"The Batman"
On March 14, Warner Bros. halted the U.K. production on Matt Reeve's DC Films reboot for at least two weeks. The film stars Robert Pattinson as the Caped Crusader. On April 20, Warner Bros. officially shifted the release date back four months to Oct. 1 from its originally planned June 2021 release date. The shift also pushed back some other DC titles, including "The Flash" to June 3, 2022 and "Shazam 2!" to Nov. 4, 2022.
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"Samaritan"
On March 14, MGM paused production on the Sylvester Stallone thriller. The film had been shooting in Atlanta.
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"Cinderella"
Sony's modernized take on "Cinderella" from director Kay Cannon and starring Camila Cabello will put its production on hiatus due to the travel ban extension to the UK. The film was shooting at Pinewood Studios.
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Warner Bros.
"Fantastic Beasts 3"
The third installment of J.K. Rowling's "Fantastic Beasts" series that's spun off from the Harry Potter universe will postpone its production that was scheduled to begin in March in the U.K. The film stars Eddie Redmayne, Johnny Depp, Jude Law and Katherine Waterston.
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Warner Bros.
"The Matrix 4"
Production on "The Matrix 4" was temporarily put on hold in March, an individual with knowledge told TheWrap. The sequel starring Keanu Reeves was in production in Berlin, Germany.
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A24
"First Cow"
After releasing Kelly Reichardt's "First Cow" in limited release on March 6, the distributor announced Monday it will re-release the film in theaters later this year.
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Greenwich Entertainment
"Deerskin"
The theatrical release of the indie film "Deerskin" from director Quentin Dupieux starring Jean Dujardin has been postponed until further notice. Greenwich Entertainment meant to release the film on March 20 after it played at Cannes, TIFF and Fantastic Fest. The movie will now open via a virtual cinema offering on May 1.
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Getty Images/Naughty Dog
"Uncharted"
“Uncharted,” the film adaptation of the popular PlayStation video game franchise starring Tom Holland, Mark Wahlberg, and Antonio Banderas, was unable to begin production in March amid coronavirus concerns. As part of a larger shuffle of Sony's release slate, the most recent release date for the film was also shifted back from March 2021 to Oct. 8, 2021.
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Sony Pictures Classics
"The Climb"
Sony Pictures Classics' indie comedy "The Climb," which played at Sundance this year, was meant to hit theaters March 20 and will now be released on Oct. 9.
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20th Century Studios
"Avatar"
The sequels to James Cameron's four "Avatar" sequels delayed shooting in New Zealand indefinitely, according to the film's producer Jon Landau speaking to the New Zealand Herald. The executive team was to fly to Wellington, NZ on Friday but will remain in Los Angeles due to the coronavirus. Landau said he couldn't give an answer as to when production would resume and when the local Kiwi crew could get back to work. "If I told you we are going to know something in two weeks I'd be lying. I might not be wrong - even a broken clock is right twice a day. But I would be lying because I don't know," Landau said. "We're in the midst of a global crisis and this is not about the film industry. I think everybody needs to do now whatever we can do, as we say here, to flatten the curve."
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Searchlight Pictures
"The Personal History of David Copperfield"
Searchlight Studios was meant to release "Veep" creator Armando Iannucci's comedic take on the Charles Dickens novel on May 8. It will now open in limited release on August 14.
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20th Century Studios
"The Woman in the Window"
The Amy Adams mystery thriller from director Joe Wright, "The Woman in the Window" was meant to open in theaters on May 15 from 20th Century Studios. No new release date has been set.
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Samuel Goldwyn Films
"Bull"
The theatrical release of the Annie Silverstein indie drama "Bull" was postponed from its March 20 release and will now open on VOD and digital on May 1. The film has toured the festival circuit since making its debut at Cannes in 2019.
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Universal
"Minions: The Rise of Gru"
The latest "Minions" movie "The Rise of Gru" was postponed from its release date on July 3. Illumination Entertainment's Paris office was forced to shut down due to the coronavirus, so the film was not able to be finished in time. Universal will release the film on July 2, 2021, a full year after its initial date.
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Warner Bros.
"Wonder Woman 1984"
The sequel to "Wonder Woman" starring Gal Gadot will now hit theaters on Oct. 2 after first being pushed back from its June 5 release date and again from Aug. 12.
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Warner Bros.
"In the Heights"
The movie musical based on Lin-Manuel Miranda's stage production "In the Heights" was postponed by Warner Bros. from its June 26 release date and bumped to June 18, 2021.
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Getty Images
"Malignant"
"Malignant," a horror film from director James Wan, was pushed indefinitely from its release date on Aug. 14 to clear the way for "Wonder Woman 1984" to open at the tail end of the summer.
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Sony
"Peter Rabbit 2," "Morbius" and "Ghostbusters: Afterlife"
In a sweeping overhaul of its release slate, Sony moved three films it had scheduled for release this summer to the first quarter of 2021. The "Peter Rabbit" sequel will now be released in January 2021 while both "Morbius" and "Ghostbusters: Afterlife" have been moved to next March. -
Sony
"Greyhound"
Sony has moved a WWII drama written by and starring Tom Hanks off of its mid-June release date and partnered with Apple to release the film on Apple TV+ in early July. -
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"Wicked"
Universal has removed the movie musical adaptation of “Wicked” from its release slate from its original date on Dec. 22, 2021, and will be redated at a later time.
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Illumination
"Sing 2"
Illumination’s “Sing 2” will now open in the place vacated by “Wicked” on Universal's release slate on Dec. 22, 2021.
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Paramount
"Top Gun: Maverick"
The sequel to the 1985 hit starring Tom Cruise has been pushed back from June 24 to December 23, 2020.
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Universal
"Candyman"
Universal's horror film "Candyman" from director Nia DaCosta and produced by Jordan Peele will move from its June 12 release date to Sept. 25, 2020.
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Photographed by Ian Spanier for TheWrap
"Praise This"
The Will Packer-produced musical comedy "Praise This" about a church choir was delayed from its Sept. 25 release date and will be re-added to the slate by Universal at a later date.
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Paramount Animation
"The Spongebob Movie: Sponge On The Run"
Paramount originally shifted the animated "Spongebob" movie from its release date on May 22 to open on August 7, but it will now debut in early 2021 on premium VOD followed by the rebranded CBS All Access.
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Disney
"Jungle Cruise"
With the shift of "Mulan," Disney moved the release of the Dwayne Johnson adventure comedy "Jungle Cruise" back a full year to July 30, 2021.
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20th Century Fox/Disney
"Free Guy"
The Ryan Reynolds video game comedy was meant to open July 3 but will now open Dec. 11.
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Searchlight Pictures
"The French Dispatch"
Director Wes Anderson’s “The French Dispatch” moved from July 24, 2020 to Oct. 16, 2020 as part of Disney's shift of its entire release calendar.
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Paramount
Untitled Indiana Jones
The fifth Indiana Jones movie starring Harrison Ford has already shifted its release date in response to Disney's wave of other release changes. It will now open July 29, 2022.
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Photograph by Steven Gerlich for TheWrap
"Nobody"
Universal's "Nobody," a revenge thriller and action movie starring Bob Odenkirk from the writer of "John Wick" and the producers of "Atomic Blonde," was delayed from its Aug. 14, 2020 release date to now open on Feb. 26, 2021. As a result, an untitled M. Night Shyamalan thriller that was slated for that day is now undated and will be re-added to the calendar later.
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Walt Disney Studios/Pixar
"Soul" and "Raya and the Last Dragon"
Disney and Pixar's "Soul" was moved from its June release date to open on Nov. 20. It's now opening near where the Disney Animation Studios film "Raya and the Last Dragon" was meant to open. That movie will now debut March 12, 2021. It filled the slot of an unnamed Disney live-action film that has now been removed from the slate.
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Getty Images
"Infinite"
The latest film from director Antoine Fuqua starring Mark Wahlberg, "Infinite," was pushed back by Paramount from its Aug. 7 release date to now open on Memorial Day weekend, May 28, 2021. The film is currently in post-production, and while "Infinite" wasn't explicitly pushed back due to the coronavirus, the new date allows the studio more time to ramp up the film's original intellectual property.
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"The Many Saints of Newark"
The prequel to "The Sopranos" that follows a young Tony Soprano, played by James Gandolfini's son Michael Gandolfini, during the 1960s Newark riots was pushed to 2021, now opening on March 12, 2021 after originally being slated for a September 2020 release.
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Getty Images
"King Richard"
The biopic about the life of tennis great Richard Williams starring Will Smith was pushed from its November 2020 release date to now opening almost a full year later on Nov. 19, 2021.
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Sony
"Venom: Let There Be Carnage"
While the "Venom" sequel did get a new title from Sony in its latest update, "Let There Be Carnage," it also found itself pushed back from an October release to now open on June 25, 2021.
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"Dungeons & Dragons"
Paramount's movie based on the "Dungeons & Dragons" game from the directors of "Game Night," John Francis Daley and Jonathan Goldstein, has been delayed from a November 2021 release date to May 27, 2022.
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Starz
"Spell"
Paramount's horror film starring Omari Hardwick that was set for release in August of this year was pulled from the release calendar, with no new date set as of yet.
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Lionsgate
"John Wick: Chapter 4"
The fourth movie in the Keanu Reeves action franchise "John Wick" was moved back a full year to now open May 27, 2022. Lionsgate also juggled several of its other big releases to 2021 and 2022, including "Fatale" (10/30/20), "Voyagers" (11/25/20), "The Asset" (4/23/21), "Barb and Star Go to Vista Del Mar" (7/16/21), "The Hitman's Wife's Bodyguard" (8/20/21) and "American Underdog: The Kurt Warner Story" (12/10/21). Further, the films "Run" and "Jesus Revolution" are both without release dates.
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Lionsgate
"Antebellum"
Lionsgate's horror movie "Antebellum" starring Janelle Monáe was moved from its April release date to now being the studio's next most earliest release in 2020 on Aug. 21.
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Universal
"The Forever Purge"
The fifth film in "The Purge" horror franchise was meant to open in theaters on July 10 of this year but was pulled from the release calendar. No new date has been set as of yet.
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Courtesy of Sundance Institute/Focus Features
"Kajillionaire"
"Kajillionaire," the latest film from director Miranda July that made its debut at Sundance and stars Debra Winger, Richard Jenkins and Evan Rachel Wood, has been pushed from its planned June release date to now open Sept. 18, 2020. However, the film will still open theatrically in a limited release.
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Getty Images
"Everybody's Talking About Jamie"
20th Century Studios' adaptation of the stage musical about a teenage drag queen stars Max Harwood and Richard E. Grant. It was meant to open Oct. 23, 2020 but will now open Jan. 22, 2021.
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Photo Courtesy of Apple Corps Ltd.
"The Beatles: Get Back"
"The Beatles: Get Back," a documentary from Peter Jackson about the Fab Four's time recording the "Let It Be" album and culminating in their historic rooftop concert, was pushed back from a fall release on Sept. 4, 2020 to now open Aug. 27, 2021.
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"The Broken Hearts Gallery"
Selena Gomez-produced rom-com “The Broken Hearts Gallery” is the story of Lucy, a 20-something art gallery assistant living in New York who, after her latest breakup, decides to create a pop-up art space of artifacts from past relationships. The film which was scheduled to be released on Aug. 7, has been pulled from the release schedule with its release date to be determined. -
"Greenland"
“Greenland,” a disaster thriller which stars Gerard Butler, along with the rest of humanity, tries to escape a massive comet that threatens to make all life on Earth extinct. Originally scheduled to be released on August 14, the film has been pushed a month to September 25.
Release slates for 2021 and beyond are taking shape as studios look to write off summer 2020
As the coronavirus continues to spread, an increasing number of movies are delaying or suspending production. As the number of impacted movies grows, TheWrap felt it would be most informative to keep a running list.
Beatrice Verhoeven
Film Editor, Twitter: @bverhoev