By: Denise Gilmartin, VP, Business Affairs, AICP
One of the issues I get asked about most often is arranging and paying for talent travel. While it is appropriate for you to manage travel for talent when you’re employing the talent, there are different and heightened risks when providing travel for personnel who are not your employees. On October 22, 2019, AICP issued the article below regarding travel for talent. Since that time production companies have been asked also to provide travel for agency and/or advertiser personnel. In the event your company provides travel for any personnel who are not your employees, and therefore not covered under your workers compensation policy, it is advisable that you treat that request the same as any request to travel talent who are not your employees. Following is the original article with amended indemnity language to include agency and/or advertiser personnel:
Many agencies are requiring production companies to arrange and pay to travel talent as part of the production. Some production companies are willing to provide this service for the additional corresponding fees. One thing that may not be immediately evident: the party who arranges and/or pays for travel may also be liable if someone is injured in transit and could also be held responsible for any delays in the talent’s arrival if not specifically dealt with upfront.
Travel fees for talent are often agreed to at a different rate than a project’s prevailing production fee and might only cover a company’s time and effort to arrange the travel, but not the potential liability associated with it. Therefore, if travel service is provided for talent, it is recommended that a production company should request to be released from all liability associated with talent travel, including the non-appearance or late arrival of talent due to delays, and injuries to the talent caused by or during travel.
There is an indemnity clause in the agency production contract that holds your company responsible for any claims or additional costs incurred as a result of your acts or services you provide. If the agency transfers the task of arranging travel for talent to the producer, the agency may make the assertion that the producer is responsible for any claims or additional costs associated with traveling talent.
If you are contemplating providing travel for talent, please consider the following:
1. Have the advertising agency or talent agent arrange and pay for: car services (including ride share services such as Uber and Lyft); travel when the project’s timeline and/or talent’s availability requires that the talent fly private (i.e. a non-commercial airline); and for all forms of travel when the talent is a celebrity.
2. Some cost consultants have recently lowered the amount you are allowed to charge for arranging/managing travel. The application of a production fee is a matter for each individual company to decide and/or negotiate with the agency/advertiser. AICP has previously issued bulletins and whitepapers on the impact of putting travel and other costs below the line. Please click here to view position papers on “Costs Below the Line”.
3. Many wrap up policies do not cover the non-appearance of cast. If the project is covered under the agency or advertiser wrap up insurance program, the production company should notify the wrap up broker in writing, via Exhibit B of the insurance addendum or otherwise, to add a cast insurance/non-appearance rider. In addition, make sure the wrap up policies provided include “Guild Travel Accident.”
4. Amend the indemnity section of the agency production contract, or add the following language to the comments section of the production contract, to release the production company from liability associated with talent travel:
“In addition to the indemnification obligations herein, Agency shall indemnify, defend, and hold Producer and its employees, directors, officers, owners, independent contractors and agents harmless from and against all liabilities, damages, claims and costs including without limitation attorneys’ fees and costs arising out of or related to [talent/agency personnel/advertiser personnel] travel including but not limited to (i) production delays due to the non-appearance or late arrival of [talent/agency personnel/advertiser personnel] and (ii) injuries, illness, and/or death of [talent/agency personnel/advertiser personnel].”
If you have any questions about this issue, or any other business affairs matter, please contact me at deniseg@aicp.com.
This information is designed as a service to AICP Members and is intended only to provide general information on the subject covered and not as a comprehensive or exhaustive treatment of that subject, legal advice, or a legal opinion. Members are advised to consult with legal counsel and other professionals with respect to the application of the subject covered to any specific production or other factual situation.