Webinar: Mitigating risk now that the Production Restart Scheme has ended

Cignpost hosted a fascinating discussion with an expert panel to examine how film and TV producers can mitigate risk on set now that the Production Restart Scheme (PRS) has ended. The discussion was chaired by former Deputy Leader of the Labour Party Tom Watson, now Chair of the Laboratory & Testing Industry Organisation (LTIO), and featured:

·       Jon Ling, Director of Production Safety for the EMEA region at Sony Pictures Entertainment

·       Rebecca Knapp, Producer at Auroral Pictures

·       Tim Thornhill, Director of Tysers

·       and Cignpost's Corporate Sales Director, Neil Sehmbhy.

Tom Watson kicked off the event by praising the TV and Film industry for its agility in developing COVID safety measures, including regular testing, to enable them to restart filming early on in the pandemic. Unlike many other sectors of the economy that were in lockdown, film and TV production was able to take place. Tom added, “We’ve seen hundreds and hundreds of productions made in the UK as a result of the adaptability and flexibility of sector and the support given by the laboratory sector in general.”

There was an acknowledgement too of the important role played by the Production Restart Scheme. In the absence of other insurance, the Government created the scheme, which supported 95,000 jobs and paid out over £53m to the industry before it came to an end. The recent removal of the scheme has left a gaping hole in insurance cover for COVID outbreaks on set, and with no commercial insurers currently covering this, there’s now concern surrounding the options that the industry has to protect its casts and crews and mitigate the financial impact of COVID going forward.

Resilience and tenacity

Jon Ling, Director of Production Safety for the EMEA region at Sony Pictures Entertainment – which also owns a raft of TV production companies – described how when COVID first hit, it was impossible to predict how long the resulting hiatus in filming would last. Some shows resumed in July 2020, while others were required to make adjustments such as moving to countries with fewer restrictions or implementing their own restrictions, e.g. avoiding close-up interactions like applying actors’ makeup.

He explained that nobody had any understanding of how COVID might develop – the role of COVID supervisor was created to deal with the pandemic – so everyone was learning on the job. But one of the biggest breakthroughs was the use of mobile labs, which offered faster results and allowed COVID testing teams to be on-site and involved in the production.

“In the US, 80-90% of our productions used a ‘Return to Work’ agreement, which all productions with at least one union member had to adhere to. From this, we developed our own protocols, including mask wearing, pre-employment testing, daily health checks, and a testing regime based on a zoning system. It also stipulated cleaning, ventilation, social distancing, and more, but we still faced huge numbers of cases. Some of our smaller TV production companies were able to use the PRS – we actually used it 16 times – but on feature films, we had to self-insure and take the hit if there was an interruption.”

Many countries used for filming offer a tax rebate offset against the cost of the film. These would sometimes include caveats such as the production employing a percentage of local staff or using a local COVID supplier.

“What productions want is low-cost, simple-to-use COVID protocols with minimal risk and a quick turnaround. We report weekly cases to our online reporting system and when they rise, we have a call to determine our next steps - e.g. upping the testing regime or possibly taking a hiatus in filming.”

Looking ahead, Jon is concerned about another wave as productions move indoors, or while they are filming in cold countries over winter. “There is some insurance about, but premiums are high and there are caveats in place. We can consider making it a non UK-based production, which means we can use Production Restart Schemes in other countries.”

He says that the industry is looking for innovative ways to cover costs and highlights the use of new technologies such as point of care testing. He ends on a positive note, describing the resilience and tenacity of the TV and film industry over the last couple of years, and the fact that cinemas seem to be thriving again.

Finding the balance

Rebecca Knapp, an independent Producer at Auroral Pictures, pointed out that one of the biggest challenges now was that everybody has different expectations from their workplace as the world opens up again. While some people are comfortable returning to crowded environments and are even perplexed by some productions’ insistence on masks on set once the Government’s restrictions had been removed, others are still extremely wary of catching the virus.

“We just don't know what trauma and personal loss people have experienced, or their vulnerability and vaccination status, so we need to create the right environment.” She added that there had also been a move, where possible, towards remote work: “If people don't feel that their production takes their health and wellbeing seriously, they are likely to change to a production that has better testing in place… and in some cases, extra protections may be put in place where people are vulnerable”.

Rebecca also highlighted that there are not many alternatives to the Production Restart Scheme available and stated that companies will need to take a more innovative approach in the future.

When it comes to COVID measures on-set, for short productions, she says a more pragmatic approach is usually taken. For longer shoots, however, where there’s more money at stake, it’s likely that producers will make use of all the available risk mitigation procedures.

Rebecca herself takes a cautious approach, taking the responsibility seriously. “It’s worrying, the idea of removing contingencies – no matter what you do, the unexpected happens.”

She acknowledged that some people are still choosing to self-isolate and that it’s likely that productions’ approach to COVID protections will be considered on a film-by-film case basis rather than taking a uniform approach.

Insurance is limited, but there is hope

Tim Thornhill, Director of Tysers, described the limited range of insurance options currently available, especially in the UK.

Insurers are wary of providing coverage for COVID due to the significant losses they made back at the start of the pandemic. “Those insurers pulled out completely of providing insurance for film and TV, and others have said we're unable to write anything for communicable disease.” He added that there is some hope, which has come from what has been seen with the PRS - a 1% rate charged on the limit, increased to 2.5% last year with the goal of getting productions used to a higher rate so that the commercial market can step back in.

He added that a new report is due out soon that is likely to show that the PRS broke even and may even have made a small profit. Now that the world has had five months of living with COVID, some insurers are beginning to provide quotes, but they will be more expensive and offer less coverage than the government scheme did. “We hope for a speedy transition into the commercial market and that financiers are lenient enough to allow for the fact that COVID might not be fully covered.”

“There is some hope, but it's limited, slow and challenging. There will be increased deductibles and less capacity available. For example, if there’s £5m available in a pot, all productions would have to have completed before more policies could be taken out, unlike the government scheme which offered hundreds of millions of pounds’ worth of coverage.”

Tim recognised that it was likely to be smaller independent productions that are most affected by the end of PRS.

Evolving with the virus

Neil Sehmbhy, Corporate Sales Director at Cignpost Diagnostics, described how Cignpost’s approach had evolved through the different phases of the pandemic. “Initially, we created COVID-safe environments with PCR testing three times a week, mostly using mobile labs on-site to deliver rapid results. But, as the virus evolved, we’ve introduced other testing, including Point Of Care and lateral flow solutions. Our aim now is to create the most cost-effective and safe COVID programmes to help ensure that the industry can make amazing productions safely but, critically, with minimal financial risk.”

Neil described the concerns felt currently by Cignpost’s team of scientific advisers about the fact that, throughout the pandemic, the virus has evolved in surprising and unexpected ways. Future changes could be dangerous, especially for those who are vulnerable or immunosuppressed and especially now that the Government has removed free testing.

Neil also referenced the current situation where 1 in 40 people are currently infected with COVID. That is in contrast to a year ago when the comparable figure was 1 in 160. When restrictions are relaxed, COVID can still infect huge numbers of people - and there are warnings about an Autumn surge, or more concerningly, new variants.

That is why Cignpost is continuing to advise clients to remain cautious, and continue to work with producers to devise testing regimes – for COVID and other diseases – that can keep them safe without huge cost.

“Now that the PRS has ended”, Neil added, “productions carry alone the financial risk of interruptions or worse. What’s the potential downside of a COVID interruption and what’s the minimum cost to mitigate the risk of an outbreak? We know what our role is: Cignpost can create safe working environments at the lowest cost that will ensure minimal impact on your filming.”

Now that testing is no longer required by law, a number of COVID-testing providers have begun to diversify into different things. Cignpost is a prime example of how quickly a testing company can scale up. Neil believes that while testing providers are reducing, if another threat were to arise, they will be able to respond quickly.

Living with COVID – Q&A

Is there a reluctance among cast and crew members to come back to set? Jon responded, “Most people enjoy being at work – they don't want to be at home.” He did, however, agree with Rebecca, who made the important point that some people may be struggling from a mental health perspective, which is something that needs addressing so that people feel as comfortable as possible being at work.

The panel discussed the likelihood of people simply refusing to test for fear of not being able to work, admitting that there is a sense of general fatigue around COVID and that people may be reluctant to test if they don’t need to. Jon agreed, “I think it is an issue, and it will carry on being an issue. You have to follow it up to make sure it does happen”. Rebecca’s thoughts were similar: “Some are very avid testers and others are more laissez-faire. You have to lead from the front and set examples.”

When asked whether a move back to PCR from lateral flow tests is likely considering the current rise in infections, Jon explained that they have COVID experts monitoring the situation daily and are ready to respond with changes in their testing policy if necessary. Rebecca added that she does foresee a return to PCR testing as we move towards the autumn.

Long COVID is another issue that could potentially be left without cover. From an insurance point of view, Tim’s answer was straightforward: insurance is based on delays, and if Long COVID causes delays, then the likelihood is that it would be excluded from cover.

“This virus evolves so much and we don’t fully understand the effects of it yet,” said Neil, referencing a recent research study that found a decline in testosterone levels in young, fit males for the six months following COVID infection. “There are a few people who are quite young with Long COVID - that's a challenge for any production,” added Rebecca, raising the point that it will remain a sensitive issue for some time. In addition, while it will be challenging to get any coverage from insurers at the moment, the industry must be wary of avoiding disability discrimination.

Tim offered a ray of hope for the industry, saying that as we obtain more knowledge of the claims received by the PRS and the mitigations that are expected by finance providers, they should hopefully become more lenient when it comes to funding productions. “It's the lack of knowledge that's the problem. Being a pessimist, you’d think it's going to get worse throughout the Autumn, so we might not expect finance providers to be more lenient until we've had a winter with COVID.”

If you’d like to learn more about how a testing regime can help prevent a COVID outbreak and protect your production, get in touch with us today.