Today, Errors and omissions insurance has become a popular topic across nearly all business models. E&O protects against losses not covered by traditional liability insurance. It’s also known as Professional Liability Insurance or Professional Indemnity Insurance. Most companies don’t realize they need it until they don’t have it. The cost of not having E&O is much greater than what it takes to add it to an existing policy package.

So, what is Errors and Omission Insurance, exactly?

Using E & O Insurance for Producers or Distributors, as an example, offers specialized coverage for a wide variety of media risks.

Why Do You Need Errors and Omissions Insurance?

General liability insurance covers damage to a third-party or their property, but what about less tangible things, like libel? E&O Insurance protects you against claims of a less tangible nature.

• Infringement of Copyright
• Invasion of Privacy
• Infringement of Trademark, Slogan, or Title
• Plagiarism
• Defamation of Products
• Libel or Slander

Errors and omissions insurance policies typically cover the business owner, employees, and subcontractors. Each policy is industry specific. In other words, a film producer will need a different type policy than a distributor.  Contact your agent to find out what type of coverage you need.

Do You REALLY Need E&O?

How many people does it take to finalize a film production? What happens if that one intern says the wrong thing? What if one of your writers happens to lift a bit of copy from some obscure publication? Are you willing to cover the costs of their mistakes? 

Because that is what will happen. A lawsuit is going to include both the person who committed the deed AND the company that employed them. Even if the claim against you gets thrown out, your legal fees and other costs will eat into your cash reserves. Most Errors & Omissions Insurance policies cover legal expenses and settlements.

So, for peace of mind, YES, you need E & O as a supplement to your general liability policy.

For more information on production insurance in California, contact Equipment & Production Insurance. The team at Equipment and Production Insurance are film, photographic & entertainment industry insurance specialists. Whether you need short-term, annual, post, documentary, commercial, equipment, rental house, E&O, or rent your own insurance, you can rely on their quick and knowledgeable assistance to meet all of your production insurance needs.