Media Obligation Insurance Coverage
What is covered, coverage limits, eligible obligations, and exclusions.
Media Obligation Insurance covers the risk of non-payment and delayed payment from film distributors and government incentive bodies after a production has been completed and delivered. This page details the scope of coverage, limits, geographic eligibility, and exclusions.
Coverage
What Is Covered
The policy protects against two categories of payment failure:
Distributor Non-Payment
When a distributor has contractually committed to pay upon delivery of the completed production, and fails to do so:
Distributor insolvency
The distributor goes out of business before the payment falls due.
Distributor illiquidity
The distributor is still operating but cannot meet its payment obligations when they come due.
Distributor default
The distributor refuses to pay, triggering a contractual dispute.
Government Incentive Non-Payment
When a government incentive body has approved an incentive, the production has met all conditions, and the payment is not made:
Budget cuts
A change in government policy reduces or eliminates the incentive programme.
Administrative delays
Bureaucratic processing extends the payment timeline significantly beyond what was expected.
Political or country risk
Political instability, sanctions, or regulatory changes affect the payment.
Up to €5M
Per distributor
Up to €10M
Per government incentive
All-inclusive
One-time premium
English Law
Law of England and Wales
The higher limit for government incentives reflects the generally larger sums involved and the different risk profile of sovereign or quasi-sovereign obligors compared to private companies. Minimum insured obligations are €3 to €4 million per production. Premium is all-inclusive, with no additional charges.
Geography
Geographic Scope
Government Incentive Coverage
Government incentive programmes from the following regions are eligible. Incentives from sanctioned countries are excluded. Incentives from countries not listed are assessed case by case.
| Region | Coverage | Notes |
|---|---|---|
| European Union | All EU member states | Full coverage |
| United Kingdom | All UK programmes | Full coverage |
| Canada | Federal and provincial | Full coverage |
| Australia | Federal and state | Full coverage |
| New Zealand | National programmes | Full coverage |
| South America | Selected countries | Case by case |
| Asia | Selected countries | Case by case |
Distributor Coverage: Worldwide
Distributors from all non-sanctioned countries worldwide are eligible for coverage. There is no geographic restriction on the location of the distributor, provided the country is not subject to international sanctions, the distributor operates in a jurisdiction where contracts are enforceable, and the distributor passes the obligor assessment during due diligence.
Beneficiaries and Production Companies
Beneficiaries (lenders and financiers) and production companies from all non-sanctioned countries are eligible. There is no geographic restriction on who can benefit from the policy.
Exclusions
What Is Not Covered
Production Non-Delivery
If the production is never completed and delivered, MOI does not apply. The policy covers payment risk after delivery, not the risk of production failure. Non-delivery risk is covered by a completion bond.
Payment Not Yet Due
The policy activates only when the contractual payment obligation has been triggered: the production is completed, delivery is accepted, and the contractual payment date has arrived.
Delivery Rejection
If a distributor rejects delivery because the production does not meet agreed specifications, or a government body rejects the incentive audit, the insurer is off risk for that obligation.
Sanctioned Territories
Any obligor, production, or transaction involving a sanctioned country, entity, or individual is excluded from coverage.
Pre-Existing Disputes
Payment disputes that existed before the policy was issued are excluded. The policy covers new payment failures, not ongoing litigation or known defaults.
Assessment
Obligor Assessment
Every obligor, meaning each distributor and government incentive body that generates an insured receivable, undergoes individual assessment. We evaluate payment history, reliability, and overall profile to determine whether the obligor meets the standards required for coverage.
This assessment is what separates media obligation insurance from standard trade credit insurance. Standard insurers do not cover entertainment receivables because they cannot assess these obligors. We can, because we understand the entertainment distribution and incentive landscape from the inside.
Insurance Stack
How MOI Works With Other Products
Media Obligation Insurance is designed to work alongside other entertainment finance insurance products. Each covers a distinct risk at a different stage.
| Product | What It Covers | Relationship to MOI |
|---|---|---|
| Completion Bond | Production completion and delivery | Covers the risk that MOI explicitly excludes: non-delivery |
| Film Production Indemnity | Named perils during production | No direct relationship; covers production-phase risks |
| E&O Insurance | Legal claims about content | No direct relationship; covers content liability |
| Trade Credit Insurance | Commercial non-payment | Standard TCI does not cover entertainment receivables; MOI fills this gap |
Policy Term
The policy runs from issuance through to the final payment date of the last insured obligation, plus a reasonable claims notification period. This typically spans from the start of production through twelve to twenty-four months after delivery, depending on the payment schedules in the distribution agreements and incentive programmes.
Governing Law
Media Obligation Insurance policies are governed by the law of England and Wales. Disputes are resolved under English jurisdiction.
Frequently Asked Questions About Coverage
Can I insure receivables from a single distributor?
Yes. The policy can cover receivables from one distributor, multiple distributors, government incentives, or any combination. The minimum total insured obligations are €3 to €4 million per production.
What if a distributor pays late but eventually pays?
If the payment is received after the policy's defined waiting period and a claim has been filed, the claim process applies. If the payment arrives before the waiting period expires, no claim is triggered. Specific waiting periods are defined in the policy terms.
Does MOI cover gap financing risk?
Not directly. Gap financing relies on unsold territories, and the risk is that those territories will not be sold at the projected values. MOI covers non-payment on existing contracts, not the risk that future contracts will or will not materialise. However, once a gap territory is sold and a distribution contract is in place, that contract can be covered by MOI.
Can I insure receivables for a production without a completion bond?
In principle, yes. However, without a completion bond there is a higher risk that the production will not be delivered, which would make the MOI policy inapplicable since it requires delivery. This may affect the risk assessment, terms, and pricing.
What currencies are covered?
The policy can cover receivables denominated in any major currency. Multi-currency receivables structures are assessed during due diligence. Currency exchange risk itself is not covered. MOI covers non-payment, not adverse exchange rate movements.
Need Coverage for Your Production?
Get in touch to discuss your financing structure and find out whether media obligation insurance is right for your production.
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