Why is Malpractice Insurance, Like Errors and Omissions Insurance for Film, Important?

Filmmakers must understand all of the important insurance coverages that are necessary for them throughout the production process. Most cities and states will have specific requirements regarding general liability insurance. Whereas most distributors will have requirements regarding malpractice insurance. Specifically errors and omissions insurance for film producers. Errors and omissions insurance for film producers represents a key area of important coverage for motion picture artists, but why?

Why is Errors and Omissions Insurance for Film Producers Important?

Errors and Omissions Insurance is malpractice insurance for filmmakers. Which provides specific coverage against claims made against the filmmaker.

Be it for defamation, infringement of copyright or rights of publicity, invasion of privacy or unauthorized use of trademarks or names.

These types of claims frequently arise in the film industry. Especially as a film gains recognition or becomes more popular in the eyes of the public. As such, Errors and Omissions Insurance is important malpractice insurance for filmmakers to possess. 

An Example of Errors and Omissions Insurance Coverage for Film Producers

Let’s take a look at some of the ways that Errors and Omissions Insurance for Film Producers can provide protections:

Consider This

Imagine a scenario in which a film producer has worked hard on the production of a film that becomes incredibly popular. Included in that film is a song that is added to the soundtrack of the film.

The film producer obtained a license to use the song from what they thought to be a publisher that was acting as a reputable source.

However, upon the film becoming popular, the original songwriter recognizes their song in the film.

They bring forth a claim to the rights stating the producer does not have a legitimate license to use the music in the film. Thus they have infringed upon the copyright of the musician’s work.

Copyright Infringement 

As a result of infringing upon the musician’s work, the original artist sues or brings forth a claim of copyright infringement to the film producer.

Although the producer believed that the rights that were purchased from the reputable publisher were solid. They were wrong. And now they could be liable for damages.

But this is where errors and omissions insurance for film producers comes into play!

The Errors and omissions insurance for film producers will provide coverage for the liability and any “damages” that might be imposed.

For example

Any attorney’s fees that result from taking the case to court. As well as any damage fees which arise out of the lawsuit. This will fully cover the errors and omissions insurance that the film producer has.

In fact, the E&O insurance provides protection for the film producer as long as they were not intentionally committing wrongdoing. 

Errors & Omissions Insurance for Film Producers is Complicated

The actual coverages provided and the way errors and omissions insurance for film producers works can be complex, at best. In fact, the issues that could arise in terms of filmmaking malpractice are incredibly complex, especially when producing a feature film.

That’s why most film producers will have a production attorney that will work directly with the insurance company. To ensure that the correct coverages are secured and that the most appropriate contracts are established at the start of the production.

The attorney will work closely with the insurer getting agreements in order. To get contracts signed and errors and omissions insurance for film workers complete. 

In Summary

Why is errors and omissions insurance for film producers so important? Because malpractice lawsuits are a dime a dozen in the film industry. They frequently come up requiring substantial protections to be in place for those involved in the production.

It’s incredibly costly to lose a lawsuit for defamation, invasion of privacy, copyright infringement or otherwise. So costly that a single lawsuit would almost certainly bankrupt a film producer or production company in the litigation.

This is why errors and omissions insurance for film producers is so important! Because it provides coverages and protections. This includes the rising costs of attorneys fees and damages incurred in these types of lawsuits. As well as other malpractice cases.