Producers E&O: What is My Distributor and Financier Asking For?

Posted by Kent Hamilton on Apr 7, 2017 3:12:31 PM

Documentary E&O Insurance


You sold your documentary! You met your distributor requirement of obtaining a three year E&O policy through the Documentary Organization of Canada (DOC) Program. Congratulations!

However, you read the fine print in the contract and you’re surprised to see several requirements:

  • First, the distributor wants you to extend your policy to cover them by naming them Additional Insured in case of a claim. No problem: you just send a request and provide us with your distributors name and address. This will generate a certificate of Insurance (COI). The certificate will detail: your company name and address, what insurance company is covering you, how much insurance the project has (i.e. $1,000,000/$3,000,000), and what the retention (deductible) is, e.g., $10,000 or $25,000).
  •  Second, the distributor wants to be covered for 5 years! You just paid a lot of money for a three year policy. Will this cost you more premium? The answer is no. There is a special endorsement called a “Rights Period Endorsement (RPE) ” or “Term of Contract Endorsement (TOC)”. This endorsement will extend the length of your E&O term to match the length of your distributors agreement as long as you notify the insurance carrier prior to the expiration of your policy. Just send us your distribution contract and in the majority of cases the insurance carrier will provide you with this  money saving endorsement.

Now you can breathe easier knowing that your E&O policy is in place  to protect your company, financiers and distributors.

Producer's E&O will cover legal & judgement costs if you are found responsible for any of:

  1. Invasion or infringement of privacy
  2. Infringement of copyright or trademark
  3. Libel, slander or other forms of defamation
  4. Plagiarism, piracy or unfair competition resulting from the alleged use of titles, formats, ideas, characters, plots, performances of artists or performers or other material
  5. Breach of contract, implied or in fact or in law, resulting from the alleged submission, acquisition or use of program, musical or literary material used by the insured in the insured production

Please note that this is an illustration only: for a detailed outline of E&O coverage, contact us and we will send you a sample policy wording. In the event of a coverage conflict given the advice above, the policy wording would prevail.



E&O Insurance 101 & How to Protect Your Film Project

E&O: What You Need to Know

E&O: Cost

Are you paying for the coverage you need?

Steps to Obtain

Producer Errors and Omissions

E&O: Reviewing Scripts

Distributor Errors and Omissions

Documentary E&O Insurance

Copyright Reports

How much of your film is copyright-able?

Copyright Infringements

Title Reports

Script Clearance Reports

Clearance Procedures

Claims Made vs. Occurrence

Fair Use

False Light Accusations

The value of a lawyer

To get or not get permission: The Social Network

A production lawyer's guide to obtaining E&O insurance and preventing litigation