Completion Guarantee
Insurance that ensures a film will be completed and delivered according to specifications.
Definition
A completion guarantee (or completion bond) is a form of insurance that guarantees a film will be finished and delivered according to the specifications in the production contract. The guarantor commits to provide additional funding if needed to complete the film, or to repay financiers if completion becomes impossible.
Completion guarantees are typically required by investors, banks, and distributors who need assurance their investment will result in a deliverable product. The guarantor monitors production and can take over if things go seriously wrong.
Why It Matters
Completion guarantees enable film financing by reducing risk for investors who might otherwise not fund productions. Understanding this mechanism is essential for producers arranging financing packages.
For the industry, completion bonds are standard practice that protect all parties in complex film financing structures.
Examples in Practice
A bank requires a completion guarantee before lending against foreign pre-sales, ensuring they'll receive repayment even if production encounters problems.
A completion guarantor takes over a troubled production after the director departs mid-shoot, bringing in a replacement to finish the film.
A producer's package includes a letter from a completion bond company as part of the financing pitch to investors.