PERG Newsletter: June 2025

     

| PERG News: June 2025 | 

In This Issue:

Liability of Third-Party-Owned Equipment Plus PERG Contract Addendum for Limiting Rental Company Exposure

In PERG’s recent Coffee Break, Understanding Your Legal Liability, four experts in the field explored liability as it relates to equipment rented by “third-parties” like crew members. Read more...

What You Can Do About Missing Equipment on Common Carrier

In May 2025, Cinema Shot, in Colorado, shipped a $77,400 Fujinon HA42 x 9.7 BERD-U48 lens via FedEx to Fujinon in New Jersey, returning a lens that was on loan. Read more...

Identity Verification: More Customers, Minus the Fraudsters

ESTA’s Plaid Identity Verification Service is starting to bear fruit. One of our early adopters reported that they were able to verify the identity of a customer who otherwise they might have mistrusted. Read more...

EWI 2025 Accepting Applications. Don’t Miss this Opportunity!

Rental companies have started submitting applications for the EWI 2025 program. PERG member rental companies should move quickly to secure a spot in the new grant cycle. The PERG program, which is sponsored by Netflix, pays all employee salary and payroll expenses for the first six months of employment. Read more...

PERG Breakfast at Cine Gear 2025

PERG hosted the PERG Rental House Breakfast at Cine Gear at the Garland Hotel, a few minutes from Universal Studios where Cine Gear tool place this year. About 70 rental companies attended the event, which took place from 8:30-11 am on Saturday, June 7. Read more...

What Tools and Resources Can Support Your Mental Health?
Behind the Scenes requests your participation in an anonymous online survey to explore mental health needs in a changing industry. Read more...

Have you made a career transition? Behind the Scenes wants to hear from you!
Have you made a career transition from one part of the industry to another? The BTS Mental Health Initiative would like to hear  your story for our new initiative to assist industry workers who find they need to make a change. Read more...

Liability of Third-Party-Owned Equipment Plus PERG Contract Addendum for Limiting Rental Company Exposure

| PERG News: June 2025 |

Understand Your Legal Liability, June 2025 

In PERG’s recent Coffee Break, Understanding Your Legal Liability, four experts in the field explored liability as it relates to equipment rented by “third parties” like crew members. Over the past 20 years, industry practice has evolved, opening potentially serious exposure when third parties rent equipment with no contract and potentially little to no liability insurance. The panel described renters’ standard obligations and the steps they must take to protect themselves from liability exposure. The panel explored what happens in cases where defective equipment plays a part in an injury or property loss, and helped rental companies and production companies understand how they are implicated. 

Seventy-two people from PERG rental companies and from AICP production companies attended the Zoom meeting, which was held on Friday, June 20. Many attendees asked practical questions and described real-world scenarios, and the group of experts responded with clarity. The meeting was recorded; see link above. 

In the meeting, PERG introduced new sample language rental companies may adopt aimed at closing the liability gap. This addendum to the rental contract was developed to codify the contractual relationship between third-party equipment owners, the rental house, and production for third-party equipment billed through the rental house. The goal is to have the third-party equipment supplier agree to the same standards that the rental house must meet when renting equipment to production.  There are also provisions in the addendum whereby the third-party equipment owner agrees to indemnify and defend the rental house/production company against claims arising from defective or improperly maintained equipment. Lastly, the addendum specifies insurance requirements and minimum liability policy limits that must be maintained by the third-party equipment owner. These insurance requirements match the limits required by production in the standard rental terms and conditions between the rental house and production. The addendum was developed by PERG and approved by AICP and PERG legal counsel.

Scott Taylor (Taylor & Taylor Associates) was the mediator and contributor to the meeting. The three panelists have in-depth knowledge of the motion picture and television industry, and more specifically, the terms and conditions under which motion picture camera, lighting and grip equipment is rented to production. Attorney William Manning, a partner at Morris Duffy Alonso Faley & Pitcoff, has handled claims in the entertainment space. His firm provides legal defense work for insurance carriers on behalf of policyholders. Carol Driscoll, Senior Vice President of claims for SoundView, has spent most of her career handling entertainment industry liability claims. SoundView is a claim adjusting firm that handles Allianz/Fireman’s Fund and Arch policies. David Seaman is the entertainment practice leader for Hiscox who has spent his career underwriting entertainment risks. 

Below are the crib notes from the meeting.

Today's Coffee Break will focus on how a motion picture and television equipment rental company should think about their legal exposures, transfer risk to responsible parties, update their rental terms and conditions, and prevent claims from happening, as well as business and management characteristics that underwriters look for when underwriting a risk.  

1) The business liability environment, the increase in the frequency and severity of claims, and the causal relationship that must be proved to successfully bring a liability claim.

a) Claim against the equipment rental house: 

i) Did the Rental House put a defective product out on rental? 

ii) Was the product defective when it left the Rental House’s possession? 

iii) Was the product used by the customer in a reasonably foreseeable manner? 

iv) Did a third party suffer harm because of the defective product? IT IS IMPORTANT TO NOTE THAT THE RENTAL HOUSE DOES NOT HAVE TO BE THE OWNER OF THE DEFECTIVE PIECE OF EQUIPMENT.

b) Claim against the production company: 

i) Did the production company receive equipment in good working condition? 

ii) Did the equipment get damaged after it left the rental house? 

iii) Was the equipment misused by the production company? 

iv) Did the equipment damage or misuse of the equipment cause injury or damage to a third party? 

2) Potential causes of claims from production equipment: 

a) Manufacturing or maintenance defects 

b) Design defects 

c) Failure to Warn or Instruct 

d) Misuse/negligent use of equipment 

3) The necessity of rental terms and conditions agreements that makes the party who supplied the defective equipment responsible for the defense costs and damages and the need for liability insurance that will fund the culpable party’s legal obligations. 

a) There should be a rental terms and conditions agreement between the rental house and production, the rental house and sub-rental house(s), and the rental house and third-party owners. 

b) The terms and conditions agreement should at the very least contain the following provisions: risk of loss of the equipment, insurance requirements, indemnification provision, disclaimer of liability for production downtime, extra expense, production overages or consequential loss, inspection and testing and limited representations or warranties. 

c) The indemnification provision should require that the party responsible for placing defective equipment out on rental agree to indemnify and defend the innocent party. 

d) The rental terms and conditions and rental terms and conditions addendum needs to be signed by all parties. 

4) The claims process:

a) When a summons and complaint is received and forwarded to an insurance carrier: 

i) The claims adjuster will verify who is insured and coverage. 

ii) Depending on the fact pattern they might hire a cause and origin investigator. 

iii) Engage legal counsel. 

iv) Have the summons and complaint answered by counsel. 

v) Tender the claim to those carriers/parties legally or contractually liable to defend and settle the matter. 

b) Clarification of any misconceptions: 

i) A Third-Party Owner will not be covered by the rental house liability insurance policy for claims brought against their company for claims arising from defective equipment that they supplied for the rental. The rental house policyholder cannot extend the benefits of their policy to another individual or business to cover their negligence or failure to maintain the equipment.

ii) It is possible for a rental house to be liable for injuries caused by a defective product even though that business did not own the defective product. The business is the deep pockets and the only company with liability insurance or assets. 

5) The factors and attitude of management that go into making a business a risk that an insurance carrier wants as a customer. Things a business can do to reduce the likelihood of product liability claims are as follows: 

a) Thorough product testing and maintenance procedures to ensure the safety of the product. 

b) Warning labels in conspicuous easy to see places on the product. 

c) Stay current on industry regulations and compliance standards.

d) Maintain accurate procurement and maintenance records. 

e) Promptly address customer complaints and reports of defective products. 

f) Transfer of risk to a third party.

6) *Production Equipment Rental Group* (PERG). You can be confident doing business with a PERG member because they: 

a) Agree to adhere to ESTA's Code of Conduct.

b) Carry the appropriate insurance coverages.

c) Offer product maintenance, repair and support.

d) Are committed to the highest quality customer service.

e) Keep up to date on the latest standards and regulations. 

f) Maintain commercial premises with regular business hours, inventory, and staff to assist you.

Disclaimer: This presentation is designed as a service to PERG and AICP Members and is intended only to provide general information on the subject covered and not as a comprehensive or exhaustive treatment of that subject, legal advice or a legal opinion. Members are advised to consult with legal counsel and other professionals with respect to the application of the subject covered to any specific production or other factual situation. PERG and AICP recognize and encourage the fact that each company exercises its own independent business judgement regarding the terms and conditions under which it operates, and this presentation is intended to inform and assist the independent decision process. The brief description of coverage used throughout this presentation is intended for informational purposes and to simplify difficult concepts to grasp. This presentation is not intended to express any legal opinion as to the nature of coverage. You must read the actual insurance policies to determine exact coverage.

 

What You Can Do About Missing Equipment on Common Carrier

| PERG News: June 2025 |

In May 2025, Cinema Shot, in Colorado, shipped a $77,400 Fujinon HA42 x 9.7 BERD-U48 lens via FedEx to Fujinon in New Jersey, returning a lens that was on loan. When the recipients opened the package at its destination the carton was mangled and re-taped and the lens case was not in the carton. Instead, they found a 7-inch wheelbarrow tire. 

Consistently, every year, 5% of the missing equipment reports filed on RENTAL GUARD are losses that occur during transit via one of the common carriers. Very few of these losses are subsequently recovered, leading some people to speculate darkly about what happens in these cases. But there are in fact effective steps rental companies can take to avoid these losses and to recover equipment when it goes missing in transit, as was demonstrated in the case where Fujifilm received a wheelbarrow tire.

As soon as Fujifilm notified Cinema Shot about the loss, Kay Baker’s team immediately took steps that were strategic and swift, and surprisingly, a few days later, FedEx found the lens and returned it. She says, “I was just stunned to be honest because we all know that once equipment is lost (or stolen) while in transit, it rarely if ever resurfaces. Miracles do happen.”

But, in the immortal words of Edna Mo, luck favors the prepared. Quick action, and having documentation readily at hand, made the difference. Kays says, “It seems it is all a matter of the timing. The longer you take to get all the claims filed and documentation to support the claim, the less likely of locating the loss.” Within a couple hours of hearing about the missing lens, the rental company had filed the claim and provided pictures and supporting documents that enabled an immediate investigation. 

 “I contacted the [Fujifilm] Operations Manager promptly and asked him to be certain the warehouse staff retained the box. I had him send me pictures of all sides of the box as well as the weight the box with the Tire.” When Cinema Shot shipped the package, it weighed 38 pounds. The carton delivered to Fujifilm weighed seven pounds.

Mangled package

The tire

A change in the weight of the package has been an important factor in several recovery stories reported to PERG. The weight is logged at each station where the package changes hands in their routing system. A change in weight at some point it the journey points FedEx and insurance investigators to the location of the mishap.  

“I immediately notified our insurance broker, Taylor and Taylor, that we had a probable loss and sent the pictures to them. I told them once I filed a claim with FedEx and posted the loss on RENTAL GUARD, I would furnish those documents to them, as well as to Fujinon, who would be contacting the police. Fujinon furnished me with the police report, case number, and detective’s name on the following Monday morning.”

I also contacted the FedEx station manager here and had him connect me to FedEx security in Colorado so that they could escalate the claim and commence their investigation. I was not going to wait for the claim to meander through their various claims channels because they can take up to 14 days before security is notified and would actively investigate. By then, it definitely would have been too late to recover anything.”

Kay feels that having the shipment insured by FedEx may have helped get the case on the carrier’s security/operations manager’s radar. FedEx has limited liability per package. “We always add a nominal amount of insurance to the shipments. If the value is more than 50% higher than our deductible, we insure for the deductible, or a minimum of $500 to $1,000 depending on replacement cost . . . Hard to say for sure, but I do feel strongly our added insurance coupled with filing the claims swiftly did make a big difference.” 

“The claims adjuster was going to have their legal department review the case to see if they would ask FedEx for reimbursement of any claim paid out due to negligence on their part. I’m not certain if that would have been successful; however, the threat of being held liable for that loss could be sobering. Thankfully, none of this became necessary since we recovered the lens, but it is worth noting for anyone who may have a similar experience in the future.”

Ways to avoid losses and to help recover items if they are lost in transit:

1. Ship items by expedited service such as overnight or two-day delivery options, not by ground. This reduces the amount of time the package is in transit, offers more detailed tracking, and streamlines the routing of the shipment. 

 

2. Insure shipments to put a loss on FedEx’s radar quickly.  

 

3. Duplicate labeling and paperwork inside over-boxed shipments. Shipping labels can be torn off cardboard packaging and can be easily peeled off shipping cases (Pelican and SKB in particular due to the nature of the case material).  

Before placing into the over-box:

• Affix a shipping label to the lens case. 

• Include a copy of the packing list INSIDE the case in addition to a duplicate P/L on the over-box carton.

• Include the origin and destination addresses on the P/L.

• Affix a duplicate shipping label to the outer over-box.

• When not over-boxing, place the same identifying documents INSIDE the shipping case. For multiple carton shipments, at minimum, place them inside the master shipping label case. 

 

4. Seal containers with security tape and strapping, as necessary. 

• Seal cartons with heavy duty clear carton sealing tape on all ends, top and bottom.

• Go back over the clear tape with security tape as an added deterrent.

• Use band strapping on all cartons more than 25 pounds or where the contents are high value.

5. Take pictures of all sides of the new shipment/carton before the carrier picked it up—all sides, plus top and bottom. Proof that the carton was not compromised at point of shipment will be important if a claim must be filed.

This incident demonstrates that when professional rental companies are prepared, establish effective procedures, and act quickly when there is an incident, it is possible to motivate action by the carriers and have a positive outcome.

Identity Verification: More Customers, Minus the Fraudsters

| PERG News: June 2025 |

ESTA’s Plaid Identity Verification Service is starting to bear fruit. One of our early adopters reported that they were able to verify the identity of a customer who otherwise they might have mistrusted. The person looked somewhat sketchy on paper. Another rental company had called to warn them there was a suspicious out-of-town renter looking for a last-minute Sony package. The renter did not have a great website or references. They were renting on a Friday. These are all well-known red flags for a rental company. Without further confirmation that the customer was who they said they were, the rental company would have turned down the rental. Instead, they ran the customer through ESTA’s Plaid Identity Verification. 

The customer was completely cooperative with the identity check and did not bat an eye about having to fill in the information on their phone and provide a photo of their ID and take a selfie for Plaid. Within minutes Plaid had unearthed information about the person and confirmed his identity, address, phone number, email address, and social media accounts. On that basis the rental company felt comfortable making the rental, and all turned out well. The rental company made a new customer instead of discouraging the client from using a professional rental company.  

ESTA can offer Plaid services to our members at extremely reasonable cost. The service, which would normally cost around $12,000 for a company, is available for ESTA members for $500 per year, plus a nominal charge per verification. One rental more than justifies the investment. Having the service gives your staff a uniform set of criteria for evaluating new clients from hard data.

Find out more and link to ESTA/PERG's demonstration and Q&A session.

Email plaid@esta.org to sign up for your own company-branded Plaid dashboard.

EWI 2025 Accepting Applications. Don’t Miss this Opportunity!

| PERG News: June 2025 |

Rental companies have started submitting applications for EWI 2025. PERG member rental companies should move quickly to secure a spot in the new grant cycle. The PERG program, which is sponsored by Netflix, pays all employee salary and payroll expenses for the first six months of employment. PERG and Netflix are working together to build a cohort of EWI 2025 candidates who will all start by the middle of July.  We will be awarding the first grants soon and will move quickly to fill all 6 spots. Learn more about the program by reviewing the Rental House Guidelines.

With EWI, new staff show accelerated growth, get in-depth industry training, and have the opportunity to network with industry professionals from every corner of the rental house ecosphere. With guidance from PERG’s training curriculum, developed by rental houses leaders, participating PERG members have the support to provide their trainees with a diverse range of experiences giving the candidate a broad understanding of how rental companies serve their clients through the entire rental process. This extensive approach to training from the start of employment builds a strong foundation for accelerated growth. 

The success of our EWI 2024 candidates speaks to the strengths of the program. In just one year from the start of the EWI 2024 grant cycle, EWI graduates are taking on more responsibilities and leadership roles within their workplaces and communities. Kiora Englemann took on a management role at Lux Lighting NY and continues to grow as a leader. Ashley at Triode has helped design new shelving on their grip trucks and found better and more efficient methods for managing large truck and equipment rentals. Sarah Sweeney, hired as a check-in and radio technician at Talamas, has broadened her skills and gained valuable hands-on experience working with and troubleshooting cinema lenses. Celeste deBardelaben has started working in the field as a first camera assistant building on the resources, skills, and network provided to her while on the rental floor at BECiNE and as an EWI candidate. Toni Fox at Serious Grippage & Light continues to work on set as well as in the shop, gaining valuable insight into how her work at the rental house impacts the crews on set. Alejandra Torres is working closely with clients as the lead equipment technician during the prep and checkout process and is taking on leadership roles in the rental shop. Each candidate is positioned for growth, and we are excited to continue with them on their journey. As we look to the future, I am thrilled to bring another round of candidates into the program and to continue strengthening the foundation of our industry.

Toni Fox helps load a truck at Serious Grippage & Light

Kiorra Engelmenn checks an LED tube at Lux Lighting

Alejandra Torres at ARRI

Celeste deBardelaben with camera rigs at Becine.

Sarah Sweeney at Talamas

EWI 2025 launched at NAB in April with six grants allocated for this cycle. Take advantage of the program today and apply by completing a simple online form and submitting a description of the role for which you are hiring. Completing the application does not commit you to anything; it is a preliminary step to register your interest and ability to participate in the program. If you are in the process of hiring for an entry-level position, this is the perfect time to apply. PERG has the network and connections in place to bring eligible candidates to you. 

Follow PERG on Instagram.

PERG Breakfast at Cine Gear 2025

| PERG News: June 2025 |

PERG hosted the PERG Rental House Breakfast at Cine Gear at the Garland Hotel, a few minutes from Universal Studios, where Cine Gear tool place this year. About 70 rental companies attended the event, which took place from 8:30-11 am on Saturday, June 7. The breakfast has proved to be a great place to engage in conversation with fellow PERG members and vendors, uninterrupted, and in a comfortable, relaxed setting away from the show. Attendees were treated to totes filled with sponsor swag. 

This year, ESTA Program Manager for Membership & Events Xenia Lappo posted Instagram videos for all the event sponsors and ESTA members who were exhibiting at the show. Xenia has great energy and keeps pushing us forward in terms of social media presence and outreach with members. PERG is looking for opportunities to promote our members and repost the good works of our members. Get in touch with Harry or Xenia if you’d like to coordinate.

Although it seems a few vendors did not exhibit this year who we have seen in the past, Cine Gear itself was relatively well attended. I ran into lots of friends who have been out of work and were looking to connect with others. It was great to speak with the vendors and see their latest wares. 

PERG on Instagram

What Tools and Resources Can Support Your Mental Health?

| PERG News: June 2025 |

The BTS Mental Health Initiative was launched in 2019 with an industry-wide survey the results of which guided the development of the tools and resources currently available. The entertainment industry has experienced major changes over the ensuing years including a global pandemic, weather related catastrophes, strikes and work slow-downs, and changing business models, so it’s time to once again ask you what initiatives would support your mental health and wellbeing.

The BTS Mental Health Initiative has done extensive work in the areas of suicide prevention, bullying and harassment, alcohol and substance misuse, finding qualified therapists, providing easy to navigate resources, Mental Health First Aid training, and reducing stigma. 

Work has recently been started on initiatives to help people improve their communication skills and to assist them in exploring career expansion or transitions to new careers when work is not plentiful enough.

Your response to the 2025 survey (btslink.org/survey) will guide the development of new tools and resources to meet your needs as you navigate a rapidly changing industry.

We seek to reach a wide and diverse group of respondents with this survey. Please help us reach as many people as possible by forwarding this survey to your co-workers and colleagues. All information will be reviewed and published only in aggregate and will not include any information that identifies any individual participant. All responses will be kept private and confidential to the extent permitted by law.

Have you made a career transition? Behind the Scenes wants to hear from you!

| PERG News: July 2025 |

The BTS Mental Health Initiative has created a Career Transitions task group to begin work on an initiative to assist industry workers who find they need to make a change. The entertainment industry has been experiencing major changes due to new viewing methods, a global pandemic, natural disasters, strikes and work slow-downs. 

For a myriad of reasons including lack of work in their chosen field, burnout, physical disabilities, changing priorities, and much more, industry workers find they can no longer continue in their current situation. This has become a major concern among many entertainment assistance organizations who consistently encounter individuals who are hesitant to take the first steps towards change.

The BTS task group aims to take people on a thought journey to clarify their needs and plan next steps. This includes: identifying their reasons for making a change, what’s most important to them, what they are looking for in a new job/career, what they don’t like, what they are good at (translating their job title into skill sets), and what comes naturally to them (the “soft” skills). 

We’d like to provide anonymous examples of the kinds of transitions that are possible – whether to another area of the entertainment industry or to another industry entirely and that’s where we need your help. If you have made a career transition we’d love to hear your story. Please email mh@btshelp.org and: 

• Tell us what your transition was?

• How you decided what you wanted to do?

• How you went about making the change?

• How your skill sets transferred?

• What advice you wish you had been given?