Why do you need Errors and Omissions insurance?
Hello!
Today we are going to talk about E&O on our #MondayBlog.
We wish all work came with only the pleasant and fun parts, especially when we talk about professions related to creation!
But every branch has its administrative and bureaucratic side, after all, they need to be paid and risks need to be covered.
For this reason, talking about insurance is always essential, because when a good insurance is taken out, peace of mind accompanies the entire production process.
So, today, the subject is Errors and Omissions, or better, why you need this insurance for your production.
E&O is an insurance linked to the commercial side of the production, and it was created with the purpose of guaranteeing freedom and tranquility during the development of artistic, cinematographic and audiovisual creations, since, despite all the care of authors and producers, it is possible that your artistic creation violates the copyright and moral rights of others.
WHAT DOES ERRORS AND OMISSIONS MEAN?
The principle is that, in terms of insurance, errors and omissions are characterized by any harmful, unintentional act that causes damages and financial losses to other people.
E&O insurance is intended to cover production in legal situations in which the producer had no intention of omitting or making a mistake.
With regard to the media/audiovisual niche, the insurance comes to cover all potential legal liabilities and defense costs against lawsuits claiming:
- Moral Damages.
- Slander, Injury and Defamation;
- Invasion of the right of privacy of a living or dead person;
- Violation of copyright or author's moral right;
- Breach of contract;
- Among others.
Thus, authors and producers will have full freedom to exercise their activity and express their creativity within the limits established by law and common sense, safeguarding their good faith in cases where they cause harm to others against their will and/or knowledge.
THE COMMERCIAL SIDE OF E&O INSURANCE
This insurance, in many cases, is a requirement for financing, licensing and distribution agreements with large companies in the market, even before the release of any film.
For this reason, dear producer, if your company is negotiating with a large studio, we advise you to carefully check the contract that is being signed between you, as our experience has been that, in 100% of cases, the presentation of this insurance is required to complete the entry procedures.
Don't be taken by surprise and include this cost, right now, in your production budget.
AN EXAMPLE – AVATAR
Did you know that after the movie Avatar was released in 2009, a man claimed that the original idea for the movie was his and that the producer, James Cameron, had stolen his idea?
Well, according to this man, many years before he had shared this idea with the multi-award winning producer.
Consider this example and how E&O insurance comes into play. In this type of situation, the insurance would provide a lawyer and would pay not only the attorney's fees, but also the costs of the trial and compensation to the third party, if the filmmaker lost the case.
YOUTUBE – AN OCEAN OF E&O DISPUTES
Maybe your production isn't as big as the movie Avatar, maybe it's just a video that will be released on Youtube. So an E&O insurance is overkill, right?
Not quite. Some time ago, a music video director posted a parody of a well-known movie that went viral, garnering over 1 million views, but unfortunately he didn't have E&O and the video was withdrawn because he couldn't afford the legal costs. A big loss for him that he could have avoided had he gotten E&O coverage.
We would like to emphasize the importance of this product, dear reader, since it is deeply linked to the commercial factor of your work.
Both for the need to have this insurance to be able to release the film, and for the fact that it will free you from a financial headache, in case any mistake happened accidentally during the production of your audiovisual.
In the next #MondayBlog we will continue talking about Errors and Omissions, more specifically we will show you what insurance companies have been offering coverage and what their main differences in application are.
Don't miss our next conversation about what are the main differences between E&O insurance in the Brazilian market.
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See you next Monday at another #MondayBlog!
An excellent week, lovers!
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Errors and Omissions
Equipments
Audiovisual Production
Drones
Life and Personal Accidents