04 – Legal security
Errors & Omissions (E&O) insurance protects you from lawsuits pertaining to theft of idea, copyright infringement, libel, slander, invasion of privacy, defamation, product disparagement, trade libel, infliction of emotional distress, right of publicity, outrage and outrageous conduct, false light, wrongful entry, false arrest, or malicious prosecution. It covers court-ordered damages as well as legal expenses. Distributors consider it to be mandatory for signing a deal, as it protects them from claims when they release your film.
Insurance companies will require a legal opinion to be able to quote for worldwide E&O coverage, which may not be offered until picture lock on your film. Move as swiftly as possible to secure this opinion and coverage, particularly if you are making a film about a powerful person or organization; you do not want to give them time to seek an injunction of your film before your insurance is in place.
Because you will not likely have E&O insurance prior to completion of the film, carefully consider what you share about the film in the public domain — on social media or at sales markets — so it does not prevent you from securing coverage.
Work with an E&O broker who primarily deals with documentary films so you can be confident they provide a policy that is a good fit for your purposes. It is easy to find brokers online, so ask other documentary filmmakers with whom they have worked and who they recommend. Your lawyer will also be able to make a recommendation.
When you fill out the application — which is generally long and detailed — do so carefully to avoid mistakes and omissions that could lead to a failure to secure coverage or for the insurance company to deny a claim.
Consider getting more than one quote so you can compare and negotiate, and pay close attention to “deductibles,” which is what you will pay in the event of a claim. Insurance companies quote higher deductibles for films they perceive as risky, which could be a red flag to a distributor and could impede your ability to get a distribution deal.