In the fast-paced world of film, television, and digital content creation, creativity is everything—but even the best ideas can lead to lawsuits. From copyright disputes to defamation claims, the entertainment industry is rife with legal risks. That’s why Errors and Omissions (E&O) insurance isn’t just helpful, it’s often required.
Whether you’re a filmmaker, producer, distributor, or content creator, E&O insurance plays a critical role in protecting your project from legal claims that could derail a release or cause serious financial loss. In fact, many – if not most – distributors and streaming platforms won’t touch a project without it. Think of E&O insurance as a silent co-producer: not on screen, but always working behind the scenes to keep the show going.
What Is E&O Insurance in the Entertainment Context?
E&O insurance in the entertainment industry covers legal claims alleging that a project contains unauthorized content (e.g., content that was not properly licensed for use) or has caused reputational or financial harm. These claims typically involve:
- Copyright infringement (e.g., using content like books, music, video footage, or artwork without proper licenses)
- Defamation
- Invasion of privacy and/or publicity
- Trademark violations
- Plagiarism or idea theft
These risks are particularly heightened in entertainment, where creative expression often intersects with real people, protected works, and brand identities.
As noted above, it is best practice to license the underlying intellectual property rights. E&O insurance is an extra layer of protection, over a valid licensing agreement, that generally covers the project from any claims.
Why E&O Coverage Is Crucial
If someone files a lawsuit alleging that your film or series used protected content without permission—or portrayed them inaccurately—E&O insurance covers the costs of defending the claim, as well as settlements, or judgments if you’re found liable.
For example, a documentary about a public figure might prompt a defamation suit. Even if the claims are groundless, legal defense can cost tens or hundreds of thousands of dollars. E&O insurance can help cover those expenses, allowing the production to move forward without financial collapse.
Moreover, E&O coverage is often a contractual requirement. Distributors, broadcasters, and platforms like Netflix or Amazon typically require proof of an active E&O policy before they will release your project. Coverage limits may vary depending on the project budget and are negotiable but typically range from $1,000,000 to $3,000,000 for individual occurrences and $3,000,000 to $5,000,000 in the aggregate.
What Does an Entertainment E&O Policy Cover?
Coverage varies depending on the insurer and the nature of your production, but an E&O policy typically includes:
- Legal defense costs, regardless of whether the claim is valid
- Settlements and judgments related to covered claims
- Claims of libel, slander, and defamation
- Infringement of copyright or trademark
- Violation of rights of publicity or privacy
Policies are usually issued on a claims-made basis, meaning the policy must be active both when the claim is made and when the alleged offense occurred.
Key Exclusions and Limitations
Entertainment E&O insurance does not cover everything. Common exclusions include:
- Bodily injury or property damage (these are typically covered under general liability insurance)
- Intentional acts or fraud
- Breach of contract claims unrelated to intellectual property or publicity rights
- Employment-related disputes
Importantly, insurers often require a clearance report from an entertainment lawyer as part of the application process. This ensures that the script has been vetted for potential legal risks, such as unauthorized use of brand names, music, or real-life personas.
Who Needs It?
Anyone involved in creating or distributing content should strongly consider E&O coverage, including:
- Independent filmmakers
- Production companies
- Studios and networks
- Documentarians
- Podcast producers
- Online content creators and YouTubers
- Publishers and digital media firms
Even short films and web series can become targets for legal claims. If your work is going to be seen by the public, it’s worth protecting with E&O insurance.
My E&O Policy Expired But My Project is Still Publicly Available – Do I Need To Renew?
Take this hypothetical scenario as an example: assume that you have an E&O policy for a film project, and the project is streaming on Netflix, and your E&O policy expires tomorrow. Your project will continue to be available to stream on Netflix for another one-year term beyond the E&O expiration. Do you need to renew your expiring E&O insurance?
Typically, in this scenario, you do not need to renew your existing E&O policy unless you (1) change, edit or modify the originally-covered content or (2) you sign a new agreement (after lapse) that contractually requires you to have E&O insurance.
In that scenario, you have not edited film since the original E&O policy, and you have not signed a new agreement requiring E&O coverage (because the film remains streaming with Netflix). So, the streaming of the original content (i.e. not modified, altered, shortened, edited, etc.) on Netflix will remain covered under the original policy.
However, if you are approached by HBO Max, and they want to distribute your film starting in two days from now (i.e., one day after the original policy lapses), that would not be covered by the original E&O policy. In this example, you should renew your E&O policy – or get a new E&O policy – for HBO Max, because this distribution would not be covered by the original, expired policy.
Conclusion
In entertainment, creativity is king—but legal protection is essential. E&O insurance is a key component of almost any production, safeguarding your investment and enabling wide distribution.
Before you hit “export” on your final cut or sign that distribution deal, make sure your project is covered. Consulting an entertainment attorney is the best way to tailor your E&O policy to your specific needs. For further guidance, reach out to us for next steps.