In every industry, even the most seasoned professionals can make mistakes. To address the potential financial consequences of these oversights, doctors have malpractice insurance, lawyers have professional liability insurance—and filmmakers have an insurance option to safeguard them, too.
E&O insurance, or errors & omissions coverage as part of insurance for feature film production, is built to protect film productions from the financial consequences of mistakes made during filming or throughout the process of bringing a picture to life on the big screen or streaming services.
A mistake during the production process can leave an otherwise profitable film in financial ruin. Here is a primer to help you understand E&O insurance and its role in protecting your film.
What is E&O Insurance For Filmmakers?
As its name indicates, E&O insurance covers the financial consequences of errors and omissions throughout a project. In film, this most often includes shots with accidental elements (such as brand names) or allegations of copyright infringement.
However, many possibilities exist that fall within the overarching umbrella of E&O. Errors and omissions insurance primarily addresses two main branches: legal action and financial risk.
E&O insurance can cover the fees associated with pursuing legal action in a case, such as when sued for plagiarism or defamation allegations. In addition, should the film be required to pay fees to use a person’s likeness or a brand image that was accidentally included, E&O insurance can cover this financial burden.
What Is Included In E&O Insurance Coverage?
Because films are, by nature, creative projects, the risk of mistakes and how they occur is nearly limitless. Some errors are more common than others, and E&O insurance frequently pays out for these. They include:
- Copyright infringement – For example, this occurs when a film or documentary with a TV playing in the background accidentally includes a song on the TV for which they did not pay the licensing fee.
- Plagiarism – For example, Thomas Althouse claimed that the film series The Matrix copied his screenplay for The Immortals, lifting his story ideas as the studio’s own.
- Breach of contract – This occurs when a producer submits a final copy of a film that does not meet the standards delineated in the original film contract.
- Intellectual property violation – As an example, this can occur by including a brand logo in a film without permission.
- Defamation – For example, this occurs if a documentary portrays its main character in a manner that results in tangible damages to that person’s life, such as job loss due to their portrayal in the film.
As copyright, international dissemination, and file sharing become more prevalent, it is more common than ever for a film to accidentally sample music or use content it did not realize it did not have the right to. This is among the most common uses for E&O insurance.
How Does E&O Insurance Protect Your Film Project?
If your production has been found to have made a mistake, the financial consequences can arise immediately. Errors & omissions insurance can address:
- The costs of legal defense to fight an allegation in court
- The fees associated with filing fees and lawsuit paperwork
- Out-of-pocket expenses related to the film during a controversy, such as keeping actors on retainer
- The cost of settlements or judgments
- The fee for using copyrighted material without permission and then paying for permission so the film can still be distributed
- The cost to reshoot sections of the film that were impacted by an unfixable mistake
Protect Your Film With E&O Insurance from MFE
Errors are bound to happen on a movie set. Producers, actors, writers, directors, and everyone else involved is only human, after all. However, film studios must make sure that the project they have invested so heavily in achieves publication as intended.
To do this, having a well-constructed errors & omissions policy is non-negotiable. Many distributors will only work with a film studio that can demonstrate it has an E&O policy that exceeds the bare minimum. Work with industry experts to acquire a policy customized to your studio’s specific needs.
The professionals at MFE Insurance specialize in film production insurance and have a depth of knowledge of the special risks faced by this industry. We provide personalized E&O policies that will leave your film secure from even significant accidental oversights.
Contact MFE Insurance to unveil the wide range of insurance for feature film production we can provide and how you can create a bulletproof mixture of coverages that allows you to approach your future projects with confidence.