INVESTING IN HOLLYWOOD

COMPLETION BOND

   A completion bond is issued by a completion guarantor which is an insurance company that insures the production against budget overruns.

Before issuing the policy, the completion bond company will closely review the production personnel, script and budget and assess whether they think this team of individuals can bring in this script within the shooting schedule and proposed budget. The completion bond company usually is quite diligent in its review because if the film goes over budget, the bond company is financially responsible. Having a completion bond should give investors some comfort. They know that if the budget is inadequate to complete the film, the investors will not confront the dilemma of either putting up more money or owning an unfinished film.

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