Film Completion Bonds

Kerry London launched its completion bond offering 2019 backed exclusively by MunichRe. We have partnered with completion bond risk management specialists Guaranteed Completions who provide Risk Management Services throughout the life of the Production through to Delivery, Payment of Receivables or until Off-Risk. Our expertise extends not only to markets in Europe, USA, Canada, Australia and New Zealand, but also to emerging markets.

The team at Guaranteed Completions have over 20 years’ experience in film completion bonds and have worked on productions ranging from large studio productions down to small independent film. Having this level of expertise they can help guide and offer advice to our clients and producers in order to maintain that productions stay on time and within budget even in crisis.

What is a Completion Bond?

A Completion Bond insures that the Production will be delivered on Time and within Budget.

A completion bond provides a three-tier level of protection:

  • An experienced and independent audit of the entire production, on which a decision to invest can be made
  • Ongoing input relating to the progress of the production, and scrutiny of production finances, with the option to take control of spending – particularly important should things start to go wrong
  • A guarantee that if the film isn’t delivered, the investment will be repaid

A Completion Bond also provides the Risk Management which oversees the Production and Delivery. Guaranteed Completions will act as Supervising Entity.

When the Insurer agrees to issue a Completion Bond to a particular Production this is a recommendation to the Investors that the particular film project in question is deemed sound. Conversely, the non-issuance of a Bond can be a warning to Investors that the project is not a sound one.

Why should a Production have a Completion Bond?

If a completion bond is in place, it can be a powerful endorsement; it shows that the project is sound and has withstood close scrutiny. For producers, it offers a stamp of approval from an experienced and independent third party, which in turn can act as a powerful incentive for potential investors.

A Completion Bond oversees the full financial make-up of the Film. It is an audit of the Production, including Pre-Production, Post-Production and Delivery, all being monitored while the process of Production and Delivery is happening.

A Completion Bond has full takeover rights. The Insurance Company has the legal power to finish and deliver the Film in the manner the Investors agreed to invest in the first place. The Insurance Company provides both security for the Investors and a line of defence against many problems that can arise in a Production.

The Completion Bond Life Cycle

The Insurers require constant reporting during the Period of Cover of the Completion Bond and the Media Credit Insurance. During the production process itself, the completion bond guarantor will continue to be actively involved, by way of:

  • Regular reviews of production paperwork, including daily production reports, weekly cost reports, cashflow reports, release of escrow payments and constant financial overview;
  • Ongoing monitoring to ensure the product being delivered continues to be in line with the script and budget, both above the line (with director, cast and crew) and below the line (with day to day costs) and in line with the schedule for delivery;
  • Monitoring of Pre-Production and Post-production expenditure leading up to delivery, as well as actual production expenditure.

 

Key Contacts

Dean Calaz

Regional Managing Director

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Grant Martindale

Corporate Manager

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Ansley Williams

Senior Account Executive

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Terry Allen

Senior Media Underwriter

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