26 Sep I’m producing a film. Do I need workers comp for my crew?

Q. I’m in the process of producing a short film in New Jersey and I’m working to get insurance to protect myself and my crew. Do I need workers compensation for my crew? My team is getting $100 per person (for the whole film), with housing/meals/transit covered by production. I’m producing as an individual — no corporation, LLC, or sole proprietorship. I’ll be running funds out of a production-specific bank account, and paying my crew through digital apps like Zelle or Venmo. – The crew will be putting in anywhere from one to five days within a period of nine days in the state. I’m already getting a general liability insurance policy for the days that we’re filming. I do not currently plan to collect W9’s and distribute 1099’s because of the low amount I’m paying. I want to minimize risks to me and I want to be a good employer (even though technically I’m not an employer by definition).
— Producer

A. Congrats on this creative endeavor!

We’re glad you’re asking about how to do right by your employees, and yourself, too. You don’t want to run afoul of the law.

The answer is pretty simple.

You should ask the same insurance agent who is arranging the general liability insurance policy about what’s called a “wrap-up” policy for workers’ compensation insurance, said Thomas Dorn, a partner at Einhorn, Barbarito, Frost & Botwinick in Denville.

“A wrap-up policy provides workers’ compensation insurance to the workers on the film for a specific period of time,” he said.

Good luck with the project!

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This story was originally published on Sept. 26, 2023.

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