Monthly Archives: May 2016

How Will the New Minimum Wage Impact The Entertainment Industry

business-894846__180Many states and cities are enacting new minimum wage laws, and all will feel the impact.  Not only will the cost of goods go up, but also every business will see an increase in workers’ compensation costs.  Those business with a high minimum wage work force will see an even higher premium increase.

In California for example, the wage increase affects 43% of the state’s workforce and makes California’s minimum wage the highest in the country.  Oregon Just passed a statewide minimum wage as well.  Alaska, Arkansas, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, Rhode Island, South Dakota, and Vermont also increased minimum wages in 2016.

The $15 per hour by 2020 may not seem like it would have much of an impact the entertainment industry, with its reliance on handsomely paid creative professionals and union presence. Caterers, prop houses, nurseries and numerous other businesses that support Hollywood productions pay many of their worker’s minimum wage or close to it, and an increase in their costs for workers would likely get passed along. (Variety.com)

Increased wages will mean increased payroll, and your workers’ compensation premiums are based on your payroll.  With increased payroll, come increased benefits, which lead to increased overall claims costs and experience mods.

What is Workers’ Compensation?

Workers’ compensation insurance is insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties.

Why Your Business Needs Workers’ Compensation Insurance

When one of your employees gets hurt on the job or has a work-related illness, only workers’ compensation will cover them.  Health insurance benefits will not provide coverage for on the job injuries.

It is important to use an agent with commercial experience to help your business find the right combination of coverage, price, and service.

MovieInsure.com offers a wide variety of A-rated, admitted and Non-Admitted insurance companies for our clients to choose from. We only deal with companies that are on the Insurance Commissioner’s approved list. We are located in beautiful Northridge, California next to CSUN

 

Summer Interns Create Risks For The Entertainment Industry

bigstock-group-of-happy-teen-high-schoo-46806427Many entertainment businesses are getting ready to hire summer interns. These internships can be rewarding for the college student as well as provide some help to the business.  Offering paid or non-paid internships can create risk for your business.  If the interns are receiving wages, they will be considered employees of the company, and eligible for workers’ compensation insurance coverage under your current policy.  If the interns are not receiving wages, you should check with your workers’ compensation insurance carrier to make sure they are covered for workplace injuries.

The Department of Labor (DOL) recently updated their requirements for interns.

  • Even though it includes actual operation of the employer’s facilities, the internship is similar to training that would be given in an educational environment.
  • The internship experience is for the benefit of the intern.
  • The intern does not displace regular employees, but works under close supervision of existing staff.
  • The employer providing the training derives no immediate advantage from the activities of the intern and, on occasion, its operations may actually be impeded.
  • The intern is not necessarily entitled to a job at the end of the internship.
  • The employer and the intern understand that the intern is not entitled to wages for the time spent interning.

Businesses need to evaluate their internship program to ensure they meet the DOL criteria and any applicable state laws.  Unpaid internship programs should be designed to provide an educational experience.

It is important to use an agent with commercial experience to help your business find the right combination of coverage, price, and service.

MovieInsure.com offers a wide variety of A-rated, admitted and Non-Admitted insurance companies for our clients to choose from. We only deal with companies that are on the Insurance Commissioner’s approved list. We are located in beautiful Northridge, California next to CSUN

Does Your Entertainment Business Need A Checkup?

It is good to review your entertainment business insurance program every year

Every business, like a person, needs checkup from time to time.  As your business grows or changes, your business insurance should respond accordingly.  If your business changes, there could be the possibility that you may not have the right entertainment insurance coverage, and that can lead to an uninsured claim.

What a business insurance check-up looks like

We will review your entertainment insurance and compare them to your operations to make sure that you have the coverage that matches your risk.  We will also review the following questions:

  • Have you added any new locations?
  • Are your productions moving into other states?
  • Have you purchased any new camera equipment?
  • Are drones part of your operations?
  • Are you responsible for talent management?

MovieInsure.com offers a wide variety of A-rated, admitted and Non-Admitted insurance companies for our clients to choose from. We only deal with companies that are on the Insurance Commissioner’s approved list. We are located in beautiful Northridge, California next to CSUN