Where Workers’ Comp Really Applies: A Filmmaker’s Guide

Taxes, benefits, and leave rules

Workers’ compensation benefits are designed to protect injured crew members without creating extra tax burdens or employment risks. Here’s what producers need to know:

Tax treatment:

• Wage-replacement benefits are not federally taxable, though a few states handle them differently.
• Medical benefits are never taxed.

Types of benefits:

• Temporary disability: Partial wage replacement during recovery
• Permanent disability: For long-term or lasting impairments
• Vocational rehabilitation: Helps crew return to work safely
• Death benefits: Paid to dependents if the worst happens

Employment protections: Most states require employers to hold a worker’s position—or offer light duty—until they’re cleared to return. These rules vary but are meant to prevent retaliation or premature termination.

Travel and duration: Employees can travel while receiving benefits only with the treating physician’s and carrier’s approval. Unauthorized travel can jeopardize claims. And remember: federal workers’ comp rules apply to government employees, not film crews—productions must follow state laws for benefit length and eligibility.

Where to get workers’ compensation insurance?

Choosing the right place to buy your policy depends on how your production operates, how often you travel, and whether you hire through payroll or directly. Each option offers trade-offs in flexibility, cost, and coverage scope.

• Private carriers: Commercial insurance companies licensed in your state can issue standalone policies. These work well for established production companies with steady year-round operations, but many lack entertainment-specific endorsements for stunts, minors, or travel shoots.
• State funds: Some states—like California and New York—require coverage to be purchased through their own workers’ compensation funds. These programs guarantee access to coverage but can be less flexible and slower to adjust for short-term or multi-state productions.
• Entertainment brokers: Specialist brokers understand the unique risks of film and TV, from rigging to foreign shoots. They can source policies tailored to production schedules, risk classes, and travel requirements—making them essential for complex or high-risk shoots.
• Payroll providers (like Wrapbook): Many producers prefer integrated “pay-as-you-go” coverage tied directly to payroll. Premiums are automatically calculated from wages and job classifications, keeping coverage current as crew rosters change and reducing surprises during audits.

The right choice depends on your production’s complexity. For most producers juggling multiple projects or states, a broker or payroll-linked solution provides the most flexibility and peace of mind.

How to get workers’ compensation insurance that fits your production

Getting the right policy is only half the job—managing it correctly is what keeps your crew protected and your production compliant. Here’s how to set up coverage that fits the way film and TV actually work:

1. Cover every worker—union or not. Workers’ comp doesn’t distinguish between a union grip and a non-union PA. If someone’s on your payroll, they need to be covered. Don’t assume union health and welfare contributions include workers’ comp—they don’t. Make sure your policy lists every category of hire, from day players and stunt teams to background actors and department heads.
2. Add “Other States” endorsements before travel. A policy written in one state won’t automatically follow you across borders. “Other States” endorsements extend coverage to new jurisdictions, protecting you from denied claims or personal liability if an injury occurs out of state. Secure these endorsements before the first travel day.
3. Secure Certificates of Insurance (COIs) early. Most permitting offices, film commissions, and location owners require proof of coverage before you shoot. COIs name the state, venue, or city as additionally insured—and having them ready in advance keeps production days on schedule.
4. Keep crew lists and locations current. Carriers base premiums on who’s hired, what they do, and where they work. If you add day players mid-shoot or move across state lines, update your records immediately. Real-time updates prevent delays in claims and unexpected costs at audit.

Staying proactive in these four areas prevents compliance gaps and costly surprises—turning workers’ comp from a legal obligation into a tool for production efficiency.

Common exceptions, pitfalls, and compliance errors

Even experienced producers can make costly workers’ comp mistakes, especially during multi-state shoots. These are the most common compliance errors and the risks they pose:

1. Misclassifying crew as independent contractors. Classifying workers as 1099 contractors when they meet the criteria of employees can leave them without coverage in the event of injury. Most states enforce strict definitions of employment, and misclassification can result in fines, retroactive premiums, and even personal liability for unpaid claims.
2. Failing to endorse new states mid-shoot. Crossing into a new state without updating your policy is one of the most common and avoidable compliance gaps. Without a proper endorsement, claims filed in that state may be denied, making the production responsible for medical bills and lost wages.
3. Under-reporting payroll by state or class code. Carriers typically audit productions after wrap. If payroll isn’t accurately allocated by work location and job classification, you could face back premiums, penalties, or denied claims.‍
4. Misaligning payroll records with claim jurisdiction. If the payroll records list one state, but a claim is filed in another, the insurer may dispute or delay benefits. This discrepancy can lead to coverage denials and disputes between the producer, crew member, and insurer.

Prevention starts with accurate record keeping, clear communication with your broker or payroll provider, and proactive state-by-state planning.

Real-world film scenarios

Real productions move fast—and risks follow. These examples show how minor oversights in workers’ comp coverage can snowball into major issues:

1. Day-player injury in an unendorsed state: A PA is hired for a two-day shoot in Nevada. When they’re injured on set, the claim is denied because Nevada wasn’t listed on the policy. Fix: Always confirm "Other States" coverage or formally endorse any new state before travel.
2. Rolling road unit across multiple states: A docuseries crew travels through five states in two weeks. Without each state formally added to the policy, the production faces liability at every border. Fix: Endorse all anticipated states before the first day of filming and ensure payroll is tracked by location.
3. International production without global coverage: A U.S.-based crew films overseas. When a gaffer is injured abroad, the domestic policy doesn’t apply. Fix: Secure Foreign Voluntary Workers’ Compensation (FVWC) or Defense Base Act coverage for international shoots involving U.S. workers.

Takeaway: Even one travel day can trigger major compliance issues. Confirm coverage early—and revisit it every time your crew crosses a state or country border.

Budgeting toolkit for producers

Workers’ compensation budgeting isn’t just about compliance—it’s essential to cost control. Tracking coverage by state and class code can prevent audit headaches and thousands in surprise premiums.

Before the shoot:

• Project payroll by risk class and state. Estimate wages for stunt personnel, crew, and administrative staff separately to forecast premiums accurately. Wrapbook’s Payroll Estimator Tool can help.
• Identify high-risk roles early. Stunts, rigging, and pyrotechnics carry higher rates. Budgeting for these upfront avoids mid-shoot funding gaps.
• Map your travel schedule. List every state you’ll film in and ensure they are endorsed before the shoot begins.

During the shoot:

• Reconcile payroll weekly by state. Catching discrepancies in real time makes audits smoother and prevents fines.
• Compare payroll to policy declarations. Make sure your records align with the insurer’s class codes and geographic endorsements.

At wrap:

• Organize timecards, call sheets, and incident reports. These are essential documentation for your post-production audit.
• Roll up payroll totals by state and class. Clean summaries reduce audit disputes and limit back-premium assessments.

Pro Tip: Treat workers’ comp data like production data—clean, organized, and real-time. The smoother your records, the cleaner your audit.

Final checklist: Multi-state workers’ comp readiness

Before your next shoot crosses a state line, confirm these essentials:

• Add all target states and “Other States” endorsements to your policy before travel.
• Verify class codes and stunt classifications with your broker to avoid audit penalties.
• Issue COIs for every location and permitting office—many won’t let you film without them.
• Track payroll weekly by location to maintain audit-ready data.
• Post required workers’ comp notices on set.
• Pre-load claim contacts in call sheets so incidents are reported immediately.

Keeping this checklist on hand ensures every shoot stays covered, compliant, and ready for wrap.

Wrapping up

Productions move fast—and your workers’ comp coverage should, too. Managing multi-state compliance doesn’t have to mean juggling spreadsheets or chasing signatures.

Wrapbook simplifies multi-state workers’ comp by syncing coverage with payroll. It tracks wages by class and location in real time, provides audit-ready exports, and offers support from entertainment-focused insurance experts—so your crew stays protected wherever the shoot takes you.

To go deeper on coverage and compliance, check out our film production insurance guide.

FAQ: Workers’ compensation for multi-state productions

1. What is workers’ compensation insurance? It’s a legally required policy that covers medical care and lost wages when a crew member is injured on the job. It protects both your team and your production from liability.

2. How does workers’ compensation work across multiple states? Coverage doesn’t automatically follow your crew. You must either list each state on your policy or use “Other States” coverage—though some states still require a specific endorsement for full compliance.

3. What does workers’ comp cover for film crews? It covers medical bills, wage replacement, disability, and death benefits for work-related injuries—on set, in transit, or during prep and strike.

4. Do you need workers’ comp if your crew are contractors? Yes. In most states, if someone works under your direction—even if paid as a contractor—they may still be considered an employee under workers’ comp laws and must be covered.

5. Where can I get workers’ comp for a short-term or mobile shoot? Specialized entertainment brokers or payroll providers can set up workers’ comp policies tailored to multi-state, short-term productions.

6. How much does workers’ comp coverage for stunts versus general crew? Premiums vary by state and classification. High-risk roles like stunts or pyrotechnics are rated significantly higher than general crew or office staff.

7. Who pays for workers’ compensation on a co-production? Each production company must cover the workers on its payroll. If multiple companies are involved, each must maintain its own compliant coverage.

8. What’s the process for filing a workers’ compensation claim on location? Immediately report the injury, gather witness information, and submit the claim through your insurer or payroll provider. Speed depends on accurate, location-specific documentation.

9. What happens when an injured worker is cleared for light duty? Depending on state law, you may offer modified work until they fully recover. Your insurer or broker can help you comply with local return requirements.

10. What does workers’ compensation mean for day players and short-term hires? Coverage starts from their first day of work, regardless of contract length. Productions must include day players, background actors, and temporary hires under their active workers’ comp policy—especially when traveling between states.