# Shutdown costs

Source: https://storiara.com/glossary/shutdown-costs
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Shutdown costs are the expenses a production incurs when shooting stops, either for a temporary suspension (weather, illness, a strike, a disaster) or a permanent shutdown. They include ongoing rents and equipment holds, crew and cast guarantees, cancellation fees, storage, and restart costs, and they are calculated to decide whether to pause, push, or stop and to support insurance claims.

## A one-week suspension, worked out

A feature on stage in week 4 loses its lead to an injury. Doctors say one week. The [production accountant](https://storiara.com/roles/production-accountant) and [UPM](https://storiara.com/roles/unit-production-manager) go deal by deal:

| Item | Status during suspension | Cost for 1 week |
|---|---|---|
| Stage and office rent | Continues | $14,500 |
| Camera and lighting packages | Rental house agrees to hold at 50% of weekly | $9,250 |
| Department heads and key crew (12) | Kept on payroll to hold them | $38,400 |
| Fringes on kept crew at 18% | $38,400 x 0.18 | $6,912 |
| Remaining crew (34) | Laid off with notice | $0 |
| Supporting cast with guaranteed weeks (3) | Pay-or-play, weekly | $8,700 |
| Picture vehicles and trucks | Continue | $3,800 |
| Insurance, security, storage | Continue | $2,600 |
| Restart: re-rig and extra prep day | One-time | $11,200 |
| **Total** | | **$95,362** |

All of it is spent with nothing on camera. The same analysis lets the producer price the alternative, such as shooting around the lead for three days with scenes that use other cast, which may cost less than stopping.

## Temporary versus permanent

A permanent shutdown changes the list. Rentals stop, but cancellation fees appear. Crew get final pay and any contractual notice. Cast with [pay-or-play](https://storiara.com/glossary/pay-or-play) deals are owed their full guarantees. Sets are struck or stored, locations are restored, and permits are cancelled. The [how to run a shutdown cost](https://storiara.com/blog/how-to-run-a-shutdown-cost-for-film-production) post walks through a full stop.

## Insurance and the bond

If the cause is covered, [production insurance](https://storiara.com/glossary/production-insurance) may pay the extra expense, less a deductible, but only with good documentation: the shutdown calculation, time cards, invoices, and [daily production reports](https://storiara.com/glossary/daily-production-report). On bonded films the completion guarantor is involved from the first day, and the shutdown cost goes straight into the [estimate to complete](https://storiara.com/glossary/estimate-to-complete) on the next [cost report](https://storiara.com/glossary/cost-report).

## What gets missed in a shutdown estimate

Assuming everyone can be laid off (many deals have guarantees), forgetting fringes on the people kept on payroll, forgetting restart costs, and not getting rental houses' hold terms in writing. A [cash flow schedule](https://storiara.com/templates/cash-flow-schedule) also needs to be updated, because a shutdown pushes spending later while some costs keep running.

## Frequently asked questions

### What costs continue when a film shuts down?

Anything contracted by the week or with a guarantee: stage and office rent, equipment on hold, vehicles, housing on distant location, crew or cast with pay-or-play or guaranteed weeks, insurance, and storage for sets and wardrobe.

### Does production insurance cover a shutdown?

Sometimes. Cast insurance can cover extra expense caused by a covered person's illness or injury, and other coverages can respond to damage to sets or equipment. Many causes, such as a financing gap, aren't covered. Read the policy with your broker before you calculate.

### Who calculates shutdown costs?

The production accountant runs the numbers with the line producer or UPM, who knows which deals can be suspended, and the producer and any completion guarantor decide what to do.