DreamLarge, You're asking a very tough question to answer. Can you do it? Only you know that, it depends on your resourcefulness. What people are answering is what 'they' can do.
Insurance and catering is important and I'm glad you addressed that. Make sure you have explored all the options for cheap equipment rentals from film co-ops in your area. Make sure you have a working budget (not just a dollar amount, but what can be allocated where), do a script breakdown, figure out locations and a solid shoot schedule. What do you need for sets, costumes, make-up, props? . That is really the only way to know you have enough. I very much recommend paying a little to qualified people - DOP, Actors, and sound (very important). Take a look at SAG's Indie options - yes, there is lots of fine print, yes you will likely have SAG own a piece of the film and have to pay residuals BUT, good performances give a value to your product. Giving a piece of your film for a great quality product is not a bad idea. Retaining 100% of nothing is still nothing. So really think about where the remaining $8000 will go. If you are able to get one or two somewhat known actors interested, it will give your pilot legs. It is possible and it has been done. Talk to SAG to see if your project qualifies, then get ON THE PHONE and talk to agents. They want their rising stars doing stuff, they will have names to recommend. Actors who have done one of two small TV appearances are a good target.
I disagree a little with the above comment about TV Pilots being a bust. I would say a TV pilot with a 12 episode bible attached has more chance of getting picked up than a feature. Yes you can independently distribute through DVD or VOD, but I assume you want your money back. A legit distributor will want Errors and Omissions Insurance which will run an additional $3000+. If you have a clean CHAIN OF TITLE you can bear this expense once an agreement/license is secured.
The odds are against you and you are crazy for trying, but every success in filmmaking starts the same way. Your organization and planning will make the difference.
So my answer is YES YOU CAN, because I did it. I made my first documentary, "Bangkok Girl" for under $10,000. It broke audience records on CBC in Canada, and has been featured on Kunskapskanalen in Sweden and Netflix in the USA. It was distributed internationally on DVD and VOD by Passion River for 4 years.
We are dreamers and while we are living in what we want to happen, we have to remember to focus on the here and now. If you don't know what you are doing paperwork wise, then make sure you have someone on board who does.
I am working on a free resource to correct the gaping hole in free online resources - any help spreading the word would be appreciated.
https://www.facebook.com/chainoftitle