Real Claims: A Byproduct of Reality T.V.
By Robert Warne - March 14, 2003The rise in popularity of reality T V has made contract disputes between “The Sopranos” star James Gandolfini and HBO almost a novelty.
Flipping the script, the reality genre adheres to a completely different cost analysis than traditional television shows. It’s not the price of top shelf talent reality producers are concerned about; it’s the price and availability of top shelf insurance coverage.
Reality producers these days are packing a loaded menu of policies that include workers compensation, general liability, automobile, specialty policies to protect against damage to sets and cast liabilities and errors and omissions liability coverage.
But because reality television relies heavily on elements of surprise and unpredictable results from average citizens, not actors with union protection, many are not protected by workers’ compensation.
And without the exclusive remedy of workers’ compensation to protect production companies, they are more exposed to pricier liability lawsuits.
Insurers like Fireman’s Fund and Aon have their share of the Hollywood pie when it comes to providing coverage for the entertainment industry. These insurers and others like them are the behind the scene stars and are the true power brokers of reality TV. This is because if a stunt, prank or controversial scenario can’t be insured against potential claims, then the show won’t go on.
CBS primed the reality craze pump with “Survivor” in 2000 and also fired up the claim pump as well.
Stacey Stillman the third contestant voted off the island in the first episode of “Survivor” accused the network and the show’s producer, Mark Burnett of manipulating the end results. She is seeking $1 million in prize money restitution and $75,000 for out-of-pocket expenses and punitive damages.
And on the flip side, Stillman is being counter-sued by CBS for $5 million.
CBS was sued by a female contestant on another one of its reality hits, “Big Brother”. The contestant filed suit after a male participant on the show put a knife to her throat.
Even the networks are duking it out in court over closely guarded successful reality formulas. ABC recently won a legal challenge in court by CBS over its “I'm a Celebrity... Get Me Out of Here” spin on “Survivor.”
These examples underscore the potential for mega claims in the reality show realm. But as long as the ratio between low cost talent and reasonably priced available insurance coverage remains profitable, the cameras will continue to roll.
And while Tony Soprano is responsible for helping HBO make $800 million last year, just remember, insurers are responsible for saving reality producers hundreds of millions of dollars in real claims.
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