Errors and Omissions (E&O) insurance protects business owners against lawsuits due to a negligent act, error or omission by the professional. In addition to claims of error, omission, or negligence, E&O insurance can also protect against slander, libel and breach of contract. It is appropriate coverage for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Policies are designed to cover the large legal defense costs that are incurred trying to prove liability or innocence.
Cyber liability insurance provides coverage on a two-fold basis – network security, which protects against an unauthorized person hacking into the client’s network and also privacy liability, which protects the client if one of their customer’s private or personal information is leaked out. This would include both electronic and hard copies so it would protect if someone in Human Resources lost an employee file and all of the employee’s info got into the wrong hands.
The policy is intended to pay for the liability the client has in making sure their system controls are well maintained and that they have done everything they can to protect the data they are responsible for keeping. In the event their system is hacked, the policy would pay for services to notify, contain and help fix the problem.
An Acquisition and Development (A&D) policy is intended to cover projects while they are in the acquisition or development stages of the production cycle. The types of allegations addressed by this insurance include:
– Invasion of privacy or publicity
– Infringement of copyright
– Libel, slander or other forms of defamation
– 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.
– 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.
Once a project is ready for production, a project-specific E&O policy should be placed (typically 30 days or so prior to principal photography). Coverage would cease under the AD E&O policy at this point for any projects produced by the Insured.
A Music E&O policy is recommended for all musicians, songwriters, music producers, record labels and others involved in creating, performing or publishing music. Very basically, it addresses allegations of copyright infringement (you stole my song or a portion of my song), trademark infringement (you stole my logo) and defamation.
The primary issue is dealing with the cost to defend these claims which can be very expensive. Often, the primary reason to purchase this insurance is to fund defense costs as even false, groundless and fraudulent allegations have to be defended.
Celebrities’ and performers’ General Liability policies have many of the same exclusions that other media professionals have; however, their higher profile leads to an even higher level of exposure.
A Personal Appearance policy may cover: