Errors and Omissions Insurance: Definition and Coverage

Media and entertainment attorney Steven C. Beer serves as a partner at Franklin, Weinrib, Rudell, and Vassallo in New York, where he represents clients in the film, music, and television industries. Steven C. Beer’s firm possesses more than five decades of experience in advising documentary filmmakers and helping them to understand the coverage offered by errors and omissions (E&O) insurance.

This type of insurance provides coverage for errors and omissions that may occur at any phase of a film’s production. E&O insurance claims in the film industry fall into three general categories: defamation, violation of privacy rights, and trademark and copyright infringement. In the event that an individual or entity makes one of these claims, a filmmaker can use E&O insurance to cover defense and liability costs. For instance, the licensor of a piece of material may file a claim against a filmmaker for using their content without acquiring the proper license first.

Coverage offered by E&O insurance is limited to out-of-pocket losses for the litigation of claims defined by the policy, provided that the filmmaker’s conduct was unintentional. Out-of-pocket losses include attorney fees, settlement payments, and complainant damage fees. All policies feature a deductible and a limit per claim. The deductible is the amount the insured must pay before coverage begins, and the limit per claim outlines the maximum amount the policy will pay. The insured is obligated to pay any remaining balance that exceeds the limit.