Errors & Omissions Insurance
Legal liability coverage, including defense costs, for claims alleging unauthorized use of titles, format, ideas, characters and plots; plagiarism and unfair competition. Also provides coverage for alleged libel, slander, defamation of character or invasion of privacy.
Television and film productions need errors and omissions insurance for a variety of risks. The title of a production could violate a third-party trademark, or an accidental failure to obtain consent or a proper license could spark a lawsuit. Defense costs associated with such lawsuits can be staggering. This coverage is usually a pre-requisite for film distribution.
This is a vital coverage to protect producers against copyright infringement suits that may be brought against them. Errors & Omissions Insurance provides coverage for:
*Libel, slander or other forms of defamation.
*Invasion or the right of privacy or publicity.
*Unauthorized use of names, trade names, service marks, titles, formats, ideas, characters, character names, characterizations, plots, musical compositions, performances, slogans, program material or any similar material.
*Infringement of copyright.
*Breach of implied or implied-in-fact contract arising out of the alleged submission of any literary, dramatic, musical or other similar material, or breach of trust and confidence arising out of any such submissions.
The available policy types are as follows:
Occurrence-Basis E&O Policy: An Occurrence basis policy affords coverage in perpetuity to claims arising from scheduled titles that incur covered claims from the scheduled title that meet the policy criteria for a trigger or an acceptable occurrence. Typical occurrences for these types of claims, depending on the actual policy terms, may include the sale, distribution or broadcast of the Scheduled Title.
Claims Made E&O Policy: has provisions that dictate that the claim must be made during the policy period. Although this may translate into a slight premium saving, this policy type requires that the policy is renewed or remains in force for multiple years for coverage to apply.
In most cases, if an occurrence policy form is available, it may serve your needs best.