What is an E&O Insurance policy, and why is this important in a screenplay contract negotiation?
E&O (Errors and Omissions) Insurance is akin to a malpractice insurance policy for writers and filmmakers. It protects them should they inadvertently infringe another party’s copyright, defame a person, invade someone’s privacy etc. etc. It does not cover a writer or filmmaker if they knowingly engage in wrongful behavior. In other words, if they are careless and infringe another’s rights they are covered, but if they intentionally plagiarize a script, they would not be covered by insurance.The insurance policy covers the named insured, and you can add additional named insureds to the policy for a nominal charge. If you are a member of the Writers Guild of America, then by virtue of their collective bargaining agreement, the writer is supposed to be included on the employer’s policy. Even with E&O coverage, in the event of litigation the insured may be liable for the deductible, which can be $10,000 or more.The policy covers both any damages assessed against the writer/filmmaker, and t
