Completion bond film industry

Completion bond financial definition of completion bond. The completion bond definition is that its a surety bond guaranteeing a project will be completed according to the terms of the contract. Film production completion bond is a written contract that guarantees a motion picture will be finished and delivered on schedule and within budget. Many businesses use completion bonds, including films, video.

Film finances has given completion guarantees to all leading banks in the entertainment industry, major film studios and distributors. A completion bond is a financial contract that ensures that a given. T2 trainspotting, palme dor winner the square, golden globe nominee for best animated motion picture the breadwinner, melancholia, their finest hour, highrise, a united kingdom, suffragette, miss you already, love is all you need and the young pope, directed by worldclass filmmakers including. In an industry known for big budgets and big egos, smiths company completion bond brings a measure of security with a specific form of. Film production completion bond allen financial insurance group. Efb have provided completion guarantees for a number of high profile international project such as. It is designed to protect a person or company that has a financial interest in a film for example, investors, a bank or a film distributor for the completion of the film. A financial contract that insures a given project will be completed even if the producer runs out of money, or any measure of financial or other impediment occurs during the. In the event production of the film is abandoned, the completion guarantor will fully repay all sums invested in the film by the bank or financiers. Under the producer agreement portion of the completion guarantee, the producer.

Hdi film industry comprehensive cover combines insurance against different risk categories according to. The completion bond company will resolve the contractors problems or find an alternative contractor. A completion bond is a specialized filming insurance product that is used to insure a production. Film industry statistics and reports about the bfi. Many important movie productions would never have been screened without the assistance of a completion bond. Completion guarantors with worldwide experience and knowledge. In all, we have guaranteed nearly 6,000 feature films, television series, documentaries and streaming productions. The film bond completion guarantee market is changing.

The completion guarantee does not go into effect until all the financing is in place. Part of our risk management is using a completion bond. It is at this stage that the bank will require a completion bond to be executed to provide them with the. Efb provides completion guarantees bonds to film and tv producers, financiers. Film finances was founded in 1950, when producers of motion pictures. A fidelity bond posted by a contractor or developer to guarantee that a particular project will be completed according to plans and specifications,on time,and without any liens incurred as a result of unpaid bills to subcontractors and suppliers. A sleepy sector of the insurance industry, the market has remained largely unchanged. A completion bond is a surety bond that guarantees a project will be completed ontime, within budget, and free of liens. Completion surety bonds are primarily used in the construction industry, but are also used in the film production and video game production industries. The bond guarantees that the film will be completed provided that all the budgeted funds, including the contingency, are in place. A sleepy sector of the insurance industry, the market has remained largely unchanged for the past 60 years.

At itoo, our film completion bond acts as a contract that guarantees a motion picture or tv production will be produced, completed and delivered according to. Picture information defines the scope and details of your production, including items such as title, type of film live action or animation, for example, language or languages, genre, total budget, expected schedule, postproduction calendar and. A completion bond in construction is a guarantee that your project will be finished on time, in accordance with the contract, even if your contractor defaults. The strike price, or the production price as it is sometimes referred, is the amount that the completion guarantor believes will be needed in order to complete and deliver the film. Completion bonds are used for construction projects, in the entertainment industry, and for. Other documents involved in creating a completion bond include. The insurance business regards film as a niche industry. A completion guarantee is a form of insurance offered by a completion guarantor company that is often used in independently financed films to guarantee that the producer will complete and deliver the film based. The bond of trust between the guarantor and the producer is vital to the. A completion guarantee sometimes referred to as a completion bond is a form of insurance offered by a completion guarantor company in return for a percentage fee based on the budget that is often used in independently financed films to guarantee that the producer will complete and deliver the film based on an agreed script, cast and budget to the distributors thereby triggering the. Its used for construction projects, but many companies want a completion bond for film or video game projects too. A producer usually secures a completion bond guaranty for the benefit of the bank or other financiers who agree to make the necessary production funding strike price available to the producer.