The opportunity for a restaurant owner to have an establishment featured in a major motion picture or on a well-known television show is one that should be seriously considered. Even a short appearance on an obscure cable series can provide marketing opportunities that go far beyond the original broadcast.
Scripted television shows such as HBO’s “Entourage” and Showtime’s “Californication,” along with many network reality shows, regularly shoot scenes in real restaurants and clubs, giving the shows a more current and realistic feel while allowing the operations to benefit from exposure on a national scale.
Those media appearances can be recycled to keep the buzz going long after the show is over — as a blurb in celebrity tabloids, a destination on a travel or fan site, a photo on the restaurant’s website, or a post on Facebook or Twitter.
Most restaurants receive a fee for allowing on-site filming, but occasionally they forgo monetary compensation if the potential publicity is expected to be extensive. If the television show in question has high ratings, the restaurant owner might negotiate for a mention in the actual dialogue, a listing in the credits and/or on the show’s website, or even a long, lingering shot of the restaurant sign. In many situations the restaurant will feed the cast and crew throughout the shoot.
But there are risks involved. As many restaurant and club owners will attest, having a film crew and their equipment on the premises poses a risk of property damage that’s often difficult or time consuming to rectify. And even when the damage is acknowledged, the production company often doesn’t carry enough insurance or have the right type of insurance to restore the premises to its original state — or they’re unable to pay the large deductibles.
So how can a restaurant owner reap the benefits of exposure but still protect his or her business, employees and patrons?
First, make sure the production company is legitimate, and verify that the person claiming to represent the company actually does. Ask to see their “reel” — a short sampling of recent film projects — either on a website or DVD, their business cards and any other promotional materials available. Also, review their producing history on The Internet Movie Database, IMDb.com.
The restaurant owner will be asked to sign a location agreement, provided by the production company. It will spell out when, what, where and who will be using the property, along with any specific prohibitions, compensation, credits and insurance requirements. It’s always advisable to have an attorney review this document.
Always have a provision in the agreement for expendable and electric power usage. For example, if the cast and crew use up toiletries or electricity at the location, the restaurant owner should receive compensation. There are other types of expendable items, but these are the most common. Larger productions generally bring their own power generators and restroom facilities.
Ensure the production company will cover any deductibles of a property damage claim and will fully compensate the restaurant even if the insurance company declines the claim, and take a cash deposit or credit card hold for the amount of the deductible in case the production company is slow to react.
Always verify that the production company has three types of insurance: general liability, property damage and workers’ compensation. Often property owners unwisely will allow filming based only on the existence of general liability insurance, believing it will cover any damage or injuries related to the shoot. But this isn’t true. Without separate property damage and workers’ comp policies, the restaurant owner could be liable for actor injuries or be forced to pay for property damage out of their own pocket.
Here is the coverage provided by these three types of insurance:
General liability insurance. This protects the general public and restaurant patrons from the actions of the production company. For example, imagine a production crew is setting up before the actual shoot. Since the restaurant is open for business, there are patrons coming in and out. A patron accidentally trips on some cables that a crew member did not properly secure. Now the restaurant owner and production company face a possible claim and lawsuit. Hopefully, the production company has proper general liability coverage, and the restaurant owner is listed as an Additional Insured on the production policy. Note: A standard policy is usually $1 million, but higher limits can be requested.
Property damage insurance. This covers any damage or destruction of the shooting location and the property contents of the location while it’s in the care, custody or control of the production company.
Workers’ compensation insurance. Workers’ compensation coverage provides medical, disability or death benefits to any cast or crew member who becomes injured in the course of their employment.
It’s common for independent filmmakers and low-budget productions to forgo workers’ comp coverage, thinking the entire cast and crew qualify as “independent contractors” or have 1099 status. However, the law states that if an individual cannot provide proof of his own workers’ comp coverage, the production entity must provide it, regardless of employment status. Often filmmakers will ask crew and cast members to waive rights to this insurance. Inexperienced cast and crew may sign these “waivers” thinking it’s the norm. In reality, the waiver document is unenforceable by law because workers’ compensation isn’t “waive-able.”
Make copies of the insurance certificate(s) that list these policies, and call the broker to verify the policies actually exist.
Anything that the restaurant owner wants prohibited should be spelled out in the location agreement mentioned earlier.
For example, be careful with allowing pyrotechnics or stunts. Filmmakers have a tendency to take risks to get that perfect shot. Be wary of any film that takes place entirely in a kitchen, as the needed pyrotechnics are likely to go beyond what is safe.
If, say, actors are portraying chefs, specify the ovens cannot actually be turned on. Different camera angles can be used to give the illusion that real cooking is taking place without actually showing a frying pan with flames underneath. And computer-generated special effects can always be used in post-production editing to insert any needed effects.
If most of the film will take place in a kitchen, carefully weigh the compensation against the risks involved. In situations like this, the production company — and the restaurant owner — might be better off if they simply built a fake kitchen.
And finally, always, always take “before” and “after” pictures. In the event of a problem, these may turn out to be the most important “shots” of the entire film experience.
Giovanni Cuarez is an executive and broker at American Entertainment Insurance Services. AEI also provides business insurance to restaurants, rental companies and other types of entities.
