The film insurance works similar to any other insurance policy in which the insurance company would cover the loss or damage to the property and cast off the insured in return for an amount known as premium. The insurance would be valid for the period of insurance as mentioned in the policy document and any loss or damage would be covered only during this period. In case of any loss or damage caused by an insured peril, the insured can approach the insurance company for compensation by submitting all the relevant documents and following the laid down procedures.

Short term insurance: This type of film insurance covers the production risks based on the duration of the project. The project could be for months or years duration and the premium would be charged accordingly.

Long term insurance: This type of insurance covers the production risks based on the policy period basis where multiple projects would be covered. There can be multiple projects which are covered under a single long term insurance.