What is Errors and Omissions Insurance for Filmmakers?

As a filmmaker, you’re probably working much of your career with the intent of producing films that will get distribution deals. However, any film that will be distributed is certain to require errors and omissions. This is to protect yourself and your production company from any potential legal liabilities. Liabilities that could be incurred from copyright infringement or unauthorized use of content. As well as various other legal challenges. But what is errors and omissions insurance for filmmakers and why is it important?

What is Errors and Omissions Insurance?

Errors and omissions insurance provides coverage for a variety of potential legal liabilities that could arise out of lawsuits. Like those that allege breach of contract, unfair competition or privacy.

As well as the unauthorized use of various literary works such as titles, formats, characters, plots or ideas.

Errors and omissions insurance also provide coverage for defense costs that could arise as a result of trying to combat these lawsuits.

Why is Errors and Omissions Insurance Important?

Errors and omissions insurance are important for filmmakers that are interested in a distribution deal.

Most distribution deals will require E&O coverage to ensure protection of the filmmaker, production studio, and others involved in the production.

This coverage protects you from slander, defamation, and libel lawsuits, too. 

For example

Let’s say that you represent a particular person in a film. And you believe that what you mention in the film is true to the best of your knowledge.

Should that individual come back and bring forth a lawsuit for defamation? Your errors and omissions insurance will protect you and your studio from any potential claims for defamation as it will also protect you from a variety of legal challenges, too.

Do I Need Errors & Omissions Insurance?

If you’re planning distribution of a film either on television, in a theater, through a cable network, or produce DVDs of your film? You’re going to need errors and omissions insurance.

Coverage is important for any film production that is released for commercial viewing. It is generally a required part of the production distribution deal that you make with the distributor.

Thus, you’ll most certainly have to sign a contract that states you not only have errors and omissions insurance. But that you have a certain level of coverage to protect yourself and those involved in your film should any lawsuits be brought forth.

In Summation

So, what is errors and omissions insurance for filmmakers and why is it so important?

It’s coverage that offers specific legal protections against liabilities. It provides further coverage against defense costs that should arise out of lawsuits that allege unauthorized use of content, unfair competition, privacy, or breach of contract.

It’s important because when it comes to film distribution, these types of lawsuits are incredibly common.