Trade Credit & Bonds Cluster

Film Completion Bonds

As independent film and local productions continue to cater for a growing audience, the need for an insurer who understands everything that goes on behind the scenes has become a necessity to success. If you have an invested interest in a film, you need cover with an insurer who plays a leading role in the industry.

FOR BOND APPLICATIONS, PLEASE VISIT THE FILM GUARANTORS APP
https://home.hollardfg.co.za/

Why get your Film Completion Bonds covered by iTOO?

Expertise and service that always gets applauded.

This specialised cover is designed to protect investors or companies with a financial interest in a film – from individual investors to banks and film distributors. 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 an agreed deadline and without further funding requests.

With iTOO’s Film Completion Bond you are assured of:

  • The Producers completing and delivering the film in accordance with the screenplay, budget and schedule which you as a financier have approved.
  • The Guarantor completing and delivering the film in accordance with the script and schedule.
  • The guarantor fully repaying all sums invested in the film by the bank or financiers, should the production be abandoned.

We are different

At iTOO our team is made up of professionals from the film industry, which means you can access more than technical knowledge, but an in-depth and firsthand understanding of how the industry works. Our specialists are up to date with the latest developments across the board and have valuable insights and advice to offer. With iTOO you can be assured that no detail is ever missed, as we act as both the Bond Company and the Underwriter. Our team is based in Johannesburg, which means quick decision making, localised premiums and no long-distance calls – it’s service that puts you in the director’s chair, every step of the way.

Claim examples

Scenario

There are enough tales of woe to serve as warnings of what can happen when producers run out of money or fall out with each other. A famous example is Terry Gilliam’s The Man Who Killed Don Quixote, the troubled production that is chronicled in Keith Fulton and Louis Pepe’s documentary Lost In La Mancha. Don Quixote was bonded by Fred Milstein’s cineFinance.

Scenario

Gilliam’s The Adventures Of Baron Munchausen was also a troubled production, bonded by Film Finances, budgeted at $23m but which reportedly cost twice that figure. Film Finances took one of its biggest ever hits but survived the setback.

How to claim

Our emergency incident response hotline is available 24/7 on:

011 351 5000 or ITOONewClaims@itoo.co.za

You’re in the hands of an expert so you can always be assured of professionalism, quick turnaround times and world-class technical knowledge. We’ll keep you in the loop every step of the way. Simply send us an email detailing your claim and our claims department will contact you for specific details.

Film Completion Bonds Contacts

FAQs

How much is a bond?

Our solutions are customised so there is not a one size fits all bond fee. It depends on the complexity of the production, the budget itself, the contingency, the experience of the team and the amount of special effects, amongst other factors. As a guide, you can work on 2%-2, 5%.

Which parties require that I have a Completion Bond in place?

  • Investors, so that the risk of running over budget is eliminated.
  • Banks, who require predictable cash flow, tax rebates and pre-sales.
  • Sales agents who spend money publicising films at festivals and markets whilst films are in production.
  • Broadcasters and distributors who make advance payments during the course of a production.

Anyone who provides cash, goods or services prior to the completion and delivery of the film is at risk. In our experience, co-productions between two or more countries/companies? would always require a Completion Guaranty attached to a project.

How can the bond assist with the DTI rebate?

It’s important to note that we only recognise 60% of the DTI Rebate towards the finance plan of the film, as the final 40% only comes in after delivery (as per the new DTI Guidelines effective September 2018.) We can calculate this amount once we have your DTI approval letter.