Why Hollywood Isn’t Prepared For Coronavirus
Here's a hint: It starts with an "I"
A while back, we talked about how Coronavirus had infected Hollywood. Financially, it has taken a massive hit. This is because of several reasons, such as delayed releases, productions, suspended events, etc. But we also need to take a look at the reasons for this mess. Why is Hollywood not prepared for a global pandemic? The answer is simple – insurance.
What about events like Coachella and concerts?
There’s always a fair chance that something might go wrong in any event. To deal with it, event organizers and producers have their events insured. It’s always a wise decision, but sometimes insurance doesn’t cover everything. Sometimes, insurance doesn’t cover global pandemics. And that is a major problem when events are under serious threat because of Coronavirus.
LeConte Moore, a leading insurance broker, talked to The Hollywood Reporter about this. He said:
Well, you can [cancel], but it wouldn’t be covered. Let’s say an organizer wants to cancel out of safety. That’s not a trigger. The virus is beyond their control, but it has to be something made necessary. It can’t just be the fear of the virus spreading. That never has been or will be covered.”
This isn’t good news at all. Even if producers know that canceling is the right thing to do, it’s of no use. The only way it could happen is if the government steps in. Unless the government makes it illegal to hold events, insurance will not cover them.
The bad news is, the Trump administration isn’t making anything clear either. They haven’t stepped in and taken any important measures. Adding to that, only state governments and schools are taking it on themselves to close down their shops.
“Mr. Trump has essentially become a bystander as school superintendents, sports commissioners, college presidents, governors and business owners across the country take it upon themselves to shut down much of American life…”
— Erica L. Green (@EricaLG) March 13, 2020
In this uncertainty, insurance will probably not cover event producers. But there’s more to it. Movie and TV show producers have also taken a hit, and they rely on insurance a lot.
Movies and shows are just as affected
Bank production loans finance a lot of movies in Hollywood. They can only guarantee finance if all promotional events take place along with the completion of the movie. But because of COVID-19, small budget movies will have trouble doing that. Any artists can catch the disease as Tom Hanks did. Events will be harder to conduct, and shooting is difficult to complete. Robert Darwell, a transactional attorney at Sheppard Mullin, says:
“These completion guarantee agreements cover most events — but my understanding is that the completion guarantors are now selling separate riders that will cover the coronavirus.
Now, this might sound good, but it’s not good news for small productions. They barely have enough to complete the film. These added costs for coverage might be too much for them. In fact, movie financing is stalling altogether because of the virus. This will result in the delay of several movies and shows. That will leave a long-lasting impact on Hollywood. It means that in the next couple of months, or maybe a whole year, good content will be hard to find. So, what are Trump and the government doing about it?
The government is stalling
Recent reports surfacing from the government suggest that the Trump administration knew how big the problem would get. Yet, they chose to ignore it for re-election. That is extremely irresponsible for any government to do, and it costs valuable lives.
This is INSANE:
"Trump did not push to do aggressive additional testing…because more testing might've led to more cases being discovered and the president made clear the lower the numbers on coronavirus, the better for the president."
HE LITERALLY DOESN'T CARE IF WE ALL DIE. https://t.co/unOyfYm9Cn
— Mikel Jollett (@Mikel_Jollett) March 12, 2020
The Centers for Disease Control and Prevention (CDC) is trying all they can to spread awareness. They are legally obliged to make testing free to all US citizens, as Rep. Katie Porter said so.
I did the math: a full battery of coronavirus testing costs at minimum $1,331.
I also did the legal research: the Administration has the authority to make testing free for every American TODAY.
I secured a commitment from a high-level Trump official that they’d actually do it. pic.twitter.com/RmolCtmNbG
— Rep. Katie Porter (@RepKatiePorter) March 12, 2020
WHO has now officially declared COVID-19 a pandemic. But it seems like the government is still far from containing it. Sadly, it doesn’t just affect the movies. It’s the lives and health of the people that are, and they matter the most.