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

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

You sold your documentary! You met your distributor requirement of obtaining a three year E&O policy through the Front Row IDA E&O 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 (i.e. $10,000 or $25,000). You can request as many certificates  as you like under the IDA program if you make multiple sales and certs are always free.
  •  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 that is offered on the IDA policies 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.

E&O insurance will pay your legal and judgement costs if you are found responsible for any of the following:

  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

To obtain a preliminary E&O quote for your project, please  CLICK HERE

You will be requested to fill out an application and a quote will be given to you in most cases within one business day.

IDA Production Insurance packages are also available:  CLICK HERE

Please note that this is an illustration only: for a detailed outline of the 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.


Topics: E&O Insurance, Documentary Insurance, Producers Errors and Omissions Insurance, IDA Insurance, International Documentary Association Insurance