Film studios looking for insurance for feature film production tend to focus primarily on policies that address harm to their equipment and actors. They may also secure general liability insurance to fulfill municipal requirements for filming permits and workers’ compensation due to legal regulations. However, it is easy to overlook errors & omission coverage within this mixture of protections.
Independent filmmakers, screenwriters, and producers—especially those involved in content that may tread into legally sensitive areas, such as documentaries, biopics, or films based on true stories—should not skip E&O coverage as a part of their comprehensive insurance strategy.
This protection shields studios from potentially significant legal fees and settlements if they make mistakes or accidentally include information, likenesses, and brands without permission.
Let’s explore how E&O insurance safeguards your film against potentially costly legal pitfalls:
What Is E&O Insurance
E&O insurance, or errors & omissions insurance, is a type of coverage that addresses the financial ramifications of mistakes and accidents throughout the filming process, especially toward the end of the film production cycle.
For instance, suppose a documentary is filmed inside a person’s home, taking interviews with multiple family members. The team must prepare the house as its own set by framing items in the shot, reorganizing the owner’s furniture, and other tasks.
However, imagine that after the shooting has been completed, the documentary is released to the public. A representative for Coca-Cola noticed that the team accidentally included one of their soda cans in a shot because a family member was drinking from it between interview questions.
The film production studio could face significant fines for using this brand information without permission. However, E&O insurance can help cover the cost of remedying this situation without entirely scrapping the documentary.
How E&O Insurance Protects Your Film
E&O insurance focuses on two primary factors: legal defenses and protection from settlements and judgments. When possible, E&O insurance addresses an issue without threatening the viability of a project.
Legal Defenses
If a dispute arises due to material included in a film, the matter may go to court for resolution. Errors & omissions insurance can pay for the legal fees associated with this process, from hiring a lawyer to paying filing fees. Depending on how long a case extends, this can result in a significant amount of protection.
Settlement Protection
Sometimes, the film production team will be responsible for paying damages or settlements to the affected party. Typically, the settlement cost comes directly from the studio’s bottom line; however, E&O insurance can pay settlements and judgments as part of its protection.
Types of Claims Covered by E&O
The types of mistakes and accidents that can arise from film shooting are nearly limitless. Still, certain types of errors are more common than others. Some of the most frequent errors & omissions claims made by film studios include:
- Copyright infringement
- Plagiarism
- Unauthorized use of a concept, character, brand, title, or image
- Breach of contract
- Libel
- Slander
- Piracy
- Unfair competition
These are just a few examples of what E&O insurance covers. Because this type of protection, by nature, addresses accidents, it can be difficult to predict what challenges a film project may face. Most publication channels require that a studio maintain E&O insurance before they will agree to a distribution contract.
Examples of Errors & Omissions Cases in Film
Accidents happen, and they can result in big bills for a film studio. Some famous examples of instances in which E&O coverage was essential include:
When the Wolf of Wall Street studio found itself on the receiving end of a $25 million lawsuit for defamation after Andrew Greene, the man on whom the film’s main character is based, alleged the production painted him as a “depraved, drug-fueled criminal and misogynist” and that the depiction is now impacting his life.- When Disney was accused of stealing Gary L. Goldman’s pitch for the Zootopia franchise, which involved a rabbit moving to a big city and partnering with a con artist fox to solve a conspiracy. The alleged copyright infringement went to court, and an extensive legal battle was endured, seeking damages for Goldman’s original idea.
Protect Your Film with MFE Insurance’s E&O Coverage
Errors & omissions insurance can save film studios from the significant financial repercussions of mistakes, which is why this type of insurance coverage is non-negotiable for studios to ensure comprehensive protection.
The experts at MFE Insurance can help you explore E&O insurance for your next project and other types of coverage to address all the risks your studio is facing. Contact MFE Insurance to discover our tailored film insurance solutions.