Errors and Omissions (E&O) insurance is also often called "Professional Liability Insurance."
If you work directly with customers as a consultant to produce commercials for television or the Web, you should definitely consider an E&O policy component
Mistakes can cost thousands of dollars at a time, or much more. E&O and data breach insurance protect you and your professional team from bearing the full cost of defending against a negligence claim made by a client, against damages resulting from a civil lawsuit. Cyber/data coverage helps you immediately use industry best-practices to prepare ahead of time for possible security incidents, minimize business impacts, and swiftly respond to breaches and attacks. Talk with Film Casualty today about getting covered.
In the film production context, insurance products are not necessarily going to cover business and technical issues such as the following:
- The primary backer for your project is sued by a foreign competitor for breach of faith.
- Copyright issues: choosing certain music that you haven't licensed for use.
- The wrong exposure or incorrect lighting is accidentally used on what you thought was the "final take" for a scene.
- Your production is shut down by local authorities for not having the right permits. This is not covered under your General Liability policy.
- A tiny incorrect shift on the SMPTE time code renders the sound package unusable for what you thought was the final rendition for a film project, causing significant delays when you have to re-produce the sound package.
- A part of your film's output is leaked to the Internet and distributed on dark Torrent sites.
- A rendering computer's RAM banks incur a flaw causing damaged output for an expensive digital video scene. Or, the same computer's disk array fails and does not successfully recover through its RAID mechanism, losing hundreds of gigabytes of data.
- A virus enters a rendering computer through an employee's thumb drive and wipes out the system's boot tracks and all the file access records for every disk in the system, isolating your output files on inaccessible though physically functional hard disks. An expensive data recovery process is now required.