Making films and working with famous actors and writers is a fantastic chance for every filmmaker or producer. However, even the most cautious ones can become liable to infringement claims and other potential risks related to filmmaking. Enter: the Errors and Omissions insurance.
In this guide, you will learn about this particular type of insurance that every filmmaker and producer should have. In addition, you will also find out how much it costs and which are the best insurance providers.
What Is Errors and Omissions Insurance?
In a nutshell, an Errors and Omissions Insurance policy will protect you from almost all potential malpractice claims someone might accuse you of.
It is a well-known policy in the USA, as well as in other countries that require filmmakers and producers to obtain it. Not only is it crucial for further distribution of your film, but it is also “a security blanket” that will protect you from issues you might have overlooked.
Those issues include, but are not limited to:
- Idea theft
- Plagiarism
- Unauthorized use of trademarks
- Defamation claims such as slander and libel
- Privacy and copyright infringement.
Why Do You Need It?
When it comes to liability, you cannot just say that you didn’t know that you were committing potential infringement. The insurance policy brokers are there to help you comb through all aspects of your current production. If you have missed something or even omitted it, it doesn’t mean that you are not liable for the claims.
Mark Litwak, a well-known attorney, gave a great example of this issue. In his take on E&O insurance, Mr. Litwak highlights an essential piece of this liability puzzle in regards to song copyright infringement.
Let’s say that you are making a film and that you want to use a specific song during the opening credits. To use that song, you have to contact the person who holds the rights to it and license it accordingly. However, if it turns out that the individual didn’t even have the rights in the first place, you can be held liable in court for copyright infringement.
Hence, getting advice from Errors and Omissions insurance brokers is a must for every filmmaker or producer. They will help you cover all potential risks, thus avoiding any future issues.
When Should You Get It and How Does It Work?
Getting E&O insurance might be expensive, but it will save you a lot of trouble in the long run. Moreover, not getting it early on in the film production process could also make you liable for certain claims.
If you are making a film of any kind, and you don’t have E&O insurance yet, there is a good chance that someone will try to stop you from making the film. That happens rarely, but it can happen.
If there is a pre-existing condition, the provider cannot give you an insurance cover for it. Just like Lisa A. Callif says in her interview with Film Courage – not disclosing something to the provider will make you liable for it if someone makes a claim against you based on that hidden fact.
If the movie is controversial in any way, or if you are filming on different locations, the insurance policy will probably be able to cover all potential claims. Nevertheless, if there is a pre-existing condition, you can potentially get sued.
For example, someone might say that you stole his work. But, you don’t have an E&O policy yet. In that case, you cannot protect yourself from a potential lawsuit because the insurance provider will not cover that pre-existing claim. Thus, someone can actually take you to court and win against you.
How To Get The Best E&O Insurance Deals?
The cost of your Errors and Omissions insurance policy will largely depend on the riskiness of your film project. If the subject is controversial, then the cost of it will be higher. It also depends on the size of the deductible, as well as the policy limit.
Needless to say, most filmmakers and producers try to find the best quality-to-price ratio – the lowest deductible and the highest limit.
Before applying for the insurance policy, production companies hire licensed brokers that specialize in Errors and Omissions insurance. Given the fact that their knowledge is extensive, the brokers will be able to find competitive bids and compare the prices. Thus, your broker can actually help you get the best deal possible.
Best E&O Insurance Providers
Finding the best insurance provider can sometimes be quite tricky. That’s why it is vital to research companies well before opting for them.
Mike from Filmmaking Lifestyle does make a good point on this matter; going for an inept company is the worst thing you can do. Thus, your insurance provider must have experience with E&O insurance policies.
Also, bear in mind that it would be a lot better if you could find providers that specialize in film industry insurance.
If you are filming in the USA, you cannot go wrong with Film Emporium and Fireman’s Fund Insurance Co. Another good choice would be The Truman Van Dyke Company.
However, if you are making a movie “across the pond,” that is, in the UK, Essex Insurance Brokers and Quartz are your best options.
What To Look For In An E&O Insurance Provider?
As previously mentioned, the insurance provider should have experience in the film industry. Apart from that, the provider also has to be able to:
- predict potential claims
- cover you in case of infringement charges and other potential risks
- provide high-quality, almost “bulletproof” service.
Word-to-mouth is the best advertisement, so if you are a filmmaker or a producer, it would be wise to consult some of your colleagues. Afterward, you can make your own selection and start collecting everything you need to apply for the insurance policy.
Conclusion
Errors and Omissions insurance might seem useless if you think that you have been more than cautious. However, the potential risks and claims that might occur are not worth it. Therefore, acquiring E&O insurance should be at the top of your list if you are planning to start filming anytime soon.