CINE Articles

Top Ten Questions
About Your Producer's "Errors and Omissions" Insurance

Chubb

Chubb has insured video and film producers for more than 40 years, so we've seen a fair amount of lawsuits against producers over their content-related activities. We understand that in today's constantly shifting legal landscape, the precise nature of media liability lawsuits can be difficult to predict. That's why having media liability/errors and omissions (E&O) coverage specifically for video and film producers is so critical.

Here are ten questions to consider when selecting media liability/E&O coverage:

  • 1. Is your policy a "claims made" form or an "occurrence" form? Claims made policies provide coverage only for events that happen and are submitted as claims against the insured while the policy is in force. Alternatively, occurrence form policies provide coverage for events that happened while the coverage was in force, even if the claim is submitted against the insured after the expiration of the policy period. An occurrence form may be more favorable to you because it offers a potentially longer period of claims protection.

  • 2. Does your policy provide "all risk" or "named peril" coverage? All risk coverage offers protection against loss from any cause associated with covered content, except those that might be specifically excluded. Alternatively, a named peril policy provides coverage for only those defined perils or causes of loss. All risk coverage may be more favorable because it has "including, but not limited to" language, which means a cause of loss does not have to be specifically listed in order to be covered.

  • 3. Do you have control over whether or not you settle a claim out of court? Ask your insurer if your policy has a settlement provision that may require you to pay out of pocket if you decline a recommended settlement acceptable to the claimant. This is especially important when it comes to defending your content or your company's reputation.

  • 4. Can you select your own attorney? Sometimes a policy dictates who you may use for defense counsel, often from a panel of attorneys provided by the insurance carrier. Ask if there is optional defense reimbursement coverage. That way, you may select your own counsel.

  • 5. Does your producers E&O offer built-in merchandising coverage? You may want to have this coverage if you plan to license your Intellectual Property to others in connection with the sale of goods or performance of services.

  • 6. Is there an "Insured versus Insured" exclusion? Ask your carrier if it provides internal copyright coverage for claims brought by former employees.

  • 7. Does your carrier offer advertising coverage? You may want to cover both content exposures associated with advertising a production as well as acts, errors or omissions associated with advertised content generally.

  • 8. Does your carrier provide "negligent publication coverage" for bodily injury or property damage? This coverage offers protection in the event someone claims they suffered physical damage or property damage because they relied on or acted on the information in your production.

  • 9. Does your carrier offer coverage for "misappropriation pursuant to a theory of breach of implied contract"? A person might claim he or she pitched you an idea that you rejected, but later used without giving compensation or credit. You may want to request coverage that offers protection in case someone claims they had an implied or unwritten agreement with you.

  • 10. Does your carrier require a "final adjudication" in order to exclude coverage for claims against you based on alleged fraudulent or criminal conduct? Final adjudication language in a conduct exclusion means that the carrier may not deny coverage based solely on evidence of fraud or criminal conduct. Rather, the carrier must provide coverage for defense costs until a conduct-based allegation has been fully proven as evidenced by final adjudication.

For more information on Chubb and its insurance products, please go to www.chubb.com/cine.

The information provided herein should not be relied upon on as legal advice or a definitive statement of the law in any jurisdiction. For such advice, an applicant, insured or reader should consult their own legal counsel. No liability is assumed by reason of the information contained herein. Chubb refers to the insurers of the Chubb Group of Insurance Companies. Actual coverage is subject to the language of the policies as issued. Chubb, Warren, NJ 07059

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