Completion Bond Coverage
What is covered, what is not, and how coverage applies across production types and geographies.
The completion bond covers the risk that a production will not be completed and delivered as agreed. This page details what is covered, what is not, and how coverage applies across different production types and geographies.
Coverage
Four Layers of Protection
Guaranteed Delivery
The production will be completed and delivered on time, within budget, and to the agreed technical standard as defined in the distribution and financing agreements.
Excess Cost Financing
If the production goes over budget, the guarantor covers the costs necessary to complete and deliver the production. This applies to overruns that exceed the approved contingency.
Production Takeover
If the production is at serious risk of failure, the guarantor has the right to take over management and direct its completion, including the right to hire, replace, or remove personnel.
Financial Repayment
If the production cannot be completed despite the guarantor's intervention, the guarantor repays the financiers' committed funds from the bond.
€4–30M
Standard budget range
All-inclusive
One-time premium
AA–
S&P rating (Munich RE)
Up to €50M
Extended capacity
Eligible Productions
Production Types We Bond
| Production Type | Budget Range | Notes |
|---|---|---|
| Feature Films | €4M – €30M | All genres including action, drama, comedy, horror, thriller, sci-fi |
| Television Series | Up to €5M per episode | Scripted drama, limited series, returning series |
| Animation | €4M – €30M | 2D, 3D, stop-motion, hybrid live-action/animation |
| Documentaries | From €4M | Feature-length documentaries with confirmed distribution |
Budget Range
The standard range is €4 million to €30 million. Capacity up to €50 million is available in select cases for productions with strong risk profiles.
Minimum Budget
€4 million. Productions below this threshold do not meet the minimum requirements for the risk management infrastructure required for bonding.
Geography
Geographic Scope
Production Companies
Eligible production companies must be based in the European Union or United Kingdom. The production company is the legal entity that is the primary producer.
Beneficiaries
Investors, lenders, and financiers protected by the bond can be based in any non-sanctioned country worldwide. There is no geographic restriction on who can benefit.
Shooting Locations
Productions can be shot anywhere in the world. The bond covers the production regardless of where principal photography, post-production, or VFX work takes place.
Co-Productions
International co-productions are eligible provided the lead production company is EU or UK-based. Treaty compliance and multi-territory financial flows are assessed during due diligence.
Exclusions
What the Bond Does Not Cover
The completion bond covers the risk of non-completion and non-delivery. It does not cover the following:
Commercial Performance
The bond guarantees delivery, not box office success. If the film is completed and delivered but performs poorly, the bond has fulfilled its purpose.
Distribution Revenue
The bond does not guarantee that distributors will pay for the production after delivery. That risk is covered by Media Obligation Insurance.
Named Perils
Individual events such as weather damage, equipment failure, or cast illness are covered by Film Production Indemnity (FPI), not the completion bond.
Pre-existing Conditions
Issues that existed before the bond was issued and were not disclosed during due diligence may be excluded from coverage.
Sanctioned Territories
Productions involving sanctioned countries, entities, or individuals are not eligible for bonding.
Force Majeure
The bond's response to force majeure events (pandemics, wars, natural disasters) depends on the specific terms and the nature of the event, as addressed in the bond agreement.
Insurance Stack
How Coverage Works With Other Insurance
A bonded production requires a full insurance stack. Each policy covers different risks. All complementary insurance must be confirmed before the completion bond can be issued.
| Insurance | What It Covers | Relationship to Bond |
|---|---|---|
| Completion Bond | Overall completion and delivery | The overarching guarantee |
| Film Production Indemnity (FPI) | Named perils: weather, equipment, cast illness, negative/faulty stock | Covers individual events; bond covers the completion gap if events cause overruns |
| General Liability | Third-party bodily injury or property damage | Required before bond issuance |
| Errors & Omissions (E&O) | Legal claims: defamation, copyright, privacy | Required for delivery; not related to completion risk |
| Cast Insurance | Key cast death, injury, illness | Subset of FPI; critical for bond risk assessment |
| Media Obligation Insurance | Non-payment by distributors/incentive bodies after delivery | Covers the next risk in the chain after the bond's job is done |
Limits
Coverage Limits
| Parameter | Value | Details |
|---|---|---|
| Minimum strike price | €3–4M | Minimum threshold for bonding eligibility |
| Standard maximum | €30M | Upper limit for standard capacity |
| Extended capacity | Up to €50M | Available in select cases with strong risk profiles |
| TV series maximum | €5M per episode | Per-episode cap for television productions |
| Premium | One-time, all-inclusive | Contact us for details |
The strike price is the total amount covered by the bond. It typically equals the full production budget including contingency.
Currency
Bonds are issued in the currency of the production budget, typically euros or US dollars. Multi-currency productions are assessed on a case-by-case basis. Currency hedging for the production itself is the responsibility of the producer. The bond does not cover exchange rate risk, but it does assess whether the production's currency exposure is adequately managed.
Frequently Asked Questions About Coverage
Does the bond cover cost overruns?
Yes. If the production exceeds its approved budget and the contingency is exhausted, the guarantor funds the additional costs necessary to complete and deliver the production.
Does the bond cover the full budget?
The bond covers the strike price, which typically equals the full production budget including contingency. Costs outside the approved budget that are not necessary for completion may not be covered.
What if the director is replaced during production?
The guarantor has the contractual right to replace the director if necessary to protect the completion of the production. This is an intervention of last resort and is only exercised when the director's continued involvement jeopardises delivery.
Are VFX-heavy productions bondable?
Yes, provided the VFX plan is realistic and properly budgeted. Our technology team assesses VFX pipelines, vendor capacity, and delivery timelines as part of due diligence. Productions with significant VFX components receive additional scrutiny of their post-production plan.
Can a documentary be bonded?
Yes, from a minimum budget of €4 million with confirmed distribution. Documentaries present unique bonding challenges because the content may evolve during production in ways that scripted productions do not. Due diligence focuses on whether the documentary has a clear enough structure and sufficient access to deliver the agreed programme.
Need to Understand Your Coverage Options?
Every production is different. Contact us to discuss how the completion bond applies to your specific project, budget, and production structure.