Insurance Terms Glossary
Definitions of essential terms and production-specific examples.
Insurance is important. It can also be confusing, especially if you’re not familiar with the vocabulary. When hiring a worker or engaging a business for a project, it is absolutely critical to confirm they have appropriate insurance coverage. This can be challenging if you don’t understand certain terms and how they might apply in production workspaces.
We’re defining a few essential terms below and providing some production-specific examples, but if you want to make sure your insurance reviews are completely taken care of, may we suggest checking out our Independent Contractor Vetting service? It includes comprehensive insurance reviews by OOTB’s expert team as part of a process that ensures your freelancers are properly vetted, classified, and contracted.
You can also check out our guide to the most common types of insurance related to workforce management.
Important disclaimer: This page is for general informational purposes only and does not constitute legal or insurance advice. Policy coverage and legal requirements may vary based on jurisdiction and specific circumstances. Consult a qualified insurance advisor or legal counsel for guidance tailored to your specific situation.
What is a certificate of insurance (COI)?
A certificate of insurance (COI) is a document that authenticates elements of an insurance policy, including its limits and endorsements. A COI will show:
The type of insurance (usually general liability, workers’ compensation, or auto)
How much coverage is on each policy
The dates the policy is active and when it expires
Who is covered by the policy
The name of the insurance company (and broker, if applicable) that issued the COI
The date the COI was created
What should you look for on a COI?
When a vendor gives you a COI, you should look for the following:
That the vendor is listed as the named insured
That the type(s) of insurance are appropriate
That the policy dates are active for the entire duration of the engagement
That the limits of the policy are appropriate for the project’s potential risks
That the COI is signed by an authorized representative and names a valid insurance company as the policy underwriter
What does it mean to be a “certificate holder”?
Being a certificate holder does not extend any insurance coverage to that person or entity. Certificate holders receive a COI with their name and contact information listed. If an insurance policy is cancelled or changed, certificate holders are notified.
Example:
If a production company plans a shoot at a commercial studio, the studio would ask the production company to provide a COI that names the studio as a certificate holder. This allows the studio to confirm that the production company has the necessary insurance limits and endorsements, that the policy will cover the duration of the engagement, and that they will be notified if the policy is canceled or amended.
What does “additional insured” mean?
If an individual or an entity is named as an additional insured, they are covered under the named insured’s policy.
Example:
If a production company films at a warehouse, the warehouse owner may ask to be named as an additional insured on the production company’s general liability policy. This would mean that the production company’s insurance would cover any liabilities that might arise while the shoot is on location at the warehouse.
What is a “waiver of subrogation”?
A waiver of subrogation is a clause in an insurance policy that prevents the insurance company from trying to recover money from a third party who may have ostensible responsibility related to a loss.
Example:
Let’s say your production company is filming a commercial with lighting equipment rented from a rental house. During the shoot, one of the lights overheats and causes a small fire that damages part of the set. Your company’s general liability insurance covers the damage and pays for the repairs to the set. After paying the claim, your company’s insurance company might try to sue the lighting rental company to recover a portion of the cost, arguing that the equipment was faulty. This is called subrogation.
However, if a waiver of subrogation was in place between you and the lighting equipment rental house, your insurance company has agreed not to pursue other parties for reimbursement, even in the case of incidents where there is potential shared responsibility.
It’s important for businesses to pay attention to these clauses when engaging contractors. If you hire a contractor who brings their own equipment to set, and you have not verified that their insurance policy contains an endorsement for a waiver of subrogation, their insurance company may try to sue you for reimbursement if the equipment is damaged during the project.
What is workers’ compensation insurance?
Workers’ compensation insurance protects employees of the named insured who suffer work-related injuries or illnesses. It limits the employer’s liability by providing the first layer of coverage and paying for medical care, disability benefits, job displacement benefits, and death benefits for injured parties.
In California, workers’ compensation limits are set at $1,000,000 per occurrence.
Workers’ compensation insurance is comprised of two parts. Part A is workers’ compensation coverage. Part B is employer liability coverage.
Owners and executives are sometimes excluded from their business’s workers’ compensation policy. This will be shown on a COI under “Any proprietor/partner/executive/officer/member excluded?” If this field is marked “Y,” there are exclusions. If it is marked “N,” all members paid as W-2 employees are covered.
If you receive a COI that indicates that members are excluded, it would be prudent to ask the named insured if anyone who is excluded will be working on your project. If there are excluded workers on the project, you can either ask that they be included on the policy or have them sign an indemnification agreement that releases your liability if they are involved in an accident.
What are some key elements of commercial automobile insurance?
A COI for a commercial auto insurance policy may have multiple endorsements checked to document the extent of coverage.
If a policy insures “any auto,” it covers accidents that an employee has while working for the named insured, regardless of whether the automobile was hired, owned, borrowed, or otherwise engaged.
If a policy insures “scheduled autos,” it means only covers specific vehicles that are listed on the policy and identified by make, model, VIN, etc.
If a policy insures “all owned autos,” it covers any automobile that is owned by the named insured.
If a policy insures “hired autos,” it covers automobiles that are hired (rented) by the named insured.
If a policy endorses “non-owned autos” coverage, it means that vehicles not specifically listed as owned or rented by the named insured are covered under the policy coverage and limits. This is helpful for when an employee uses their personal vehicle while performing work for the named insured.
“Non-owned autos” coverage can be particularly helpful in the production industry. If a worker gets into an accident while running an errand for a production in their personal vehicle, the “non-owned” endorsement would cover the incident.
What is EPLI (Employment Practices Liability Insurance)?
EPLI covers legal costs, settlements, or judgments if someone brings a claim against your company alleging violations in how you hire, manage, or terminate workers. It covers claims relating to discrimination, harassment, wrongful termination, and retaliation, among other related topics.
Example:
A production company publishes a job listing for a full-time editor. One of the applicants who applied unsuccessfully files a discrimination lawsuit against the production company, claiming they were discriminated against due to their age. The production company’s EPLI policy would help cover attorney fees, court fees, and settlements or damages related to this claim.