Errors & Omissions (E&O) Insurance is a specialized liability policy that protects production companies against legal claims arising from the content of their productions. It covers legal liability and defense costs associated with lawsuits alleging:
- Unauthorized useof titles, formats, ideas, characters, or plots
- Plagiarism or piracy
- Unfair competition
- Libel, slander, or defamation of character
- Invasion of privacy
This insurance is essential for safeguarding your production company from financial losses due to legal actions related to intellectual property infringement and other content-related claims.
Why Do You Need Errors & Omissions Insurance?
Essential for Distribution
Before distributing a film, television pilot, series, or documentary, distributors typically require the production company to have an E&O policy in place. This ensures that both the production company and the distributor are protected against potential lawsuits related to the content of the production.
Protects Against Content-Related Claims
In the creative process, it’s possible to unintentionally infringe upon someone else’s intellectual property rights. E&O Insurance provides coverage for legal defense and any settlements or judgments, minimizing the financial impact on your company.
Mitigates Legal Risks
Legal claims can be complex and time-consuming. E&O Insurance allows you to focus on your productions while the insurance handles the legal aspects, including defense costs and settlements.
Who Should Consider Errors & Omissions Insurance?
- Production Companies: All production companies, regardless of size, should consider E&O Insurance to protect against content-related legal claims that could have significant financial repercussions.
- Distributors: Distributors should carry their own E&O policies in addition to requiring production companies to have coverage. This dual layer of protection ensures that both parties are safeguarded against potential lawsuits.
- Independent Filmmakers: Independent producers and filmmakers aiming for distribution should secure E&O coverage to meet distributor requirements and protect their creative work.
How Does Errors & Omissions Insurance Work?
Application Process
- Complete the Application: The E&O application is detailed and requires comprehensive information about your production. This includes scripts, releases, and details about any real persons or events depicted.
- Legal Review and Clearances: Obtain clearances and legal opinions from qualified entertainment attorneys. These documents confirm that necessary rights and permissions have been secured and that the production has been vetted for potential legal issues.
- Underwriting: The insurance provider reviews the application and supporting documents to assess the risk and determine the policy terms and premium.
- Policy Issuance: Once approved, the policy is issued, providing coverage for specified legal claims related to your production.
Coverage Period
E&O policies typically cover claims made during the policy period for productions completed or released within that time frame. It’s important to maintain coverage for as long as the production is being distributed.
Benefits of Errors & Omissions Insurance
- Financial Protection: Covers legal defense costs, settlements, and judgments, protecting your company’s finances from substantial legal expenses.
- Facilitates Distribution: Having E&O Insurance is often a prerequisite for distribution deals, allowing your production to reach wider audiences.
- Peace of Mind: Provides reassurance that your production is protected against unforeseen legal challenges, allowing you to focus on creative endeavors.
Frequently Asked Questions
How Long Do I Need E&O Insurance?
It’s advisable to maintain E&O coverage for as long as the production is being distributed, which could be several years. Some distributors may specify the required coverage period.
Can I Obtain E&O Insurance After Production?
Yes, but it’s recommended to start the application process early, as obtaining the necessary clearances and legal reviews can be time-consuming.
What Does E&O Insurance Not Cover?
E&O Insurance does not cover intentional wrongdoing, fraudulent acts, or bodily injury and property damage claims. Separate policies are needed for general liability and other risks.
Sources
- Producers Guild of America – Errors & Omissions Insurance
- Media Insurance Services – E&O Insurance Overview
- The Importance of E&O Insurance in Film Production