Hey there Creatives! We know you’ve got a lot on your plate, from managing day-to-day operations to planning for the future. But have you ever considered the importance of Errors and Omissions (E&O) insurance for your business? Let’s dive into this crucial coverage and see why it’s a game-changer for your peace of mind.
Errors and Omissions Definition.
Errors and Omissions insurance, also known as professional liability insurance, is like a safety net for your business. It shields you against claims of mistakes in your professional services, such as services that are late, inaccurate, or never delivered. It’s your defense against those “uh-oh” moments.
Real-Life E&O Insurance Claim Examples
To make it more relatable, consider these real-life scenarios:
- Marketing Misfire: Picture a marketing firm advising a client on an ad campaign for their new product. The campaign not only flops but also tarnishes the client’s reputation due to an oversight. E&O insurance steps in to cover the fallout.
- PR Blunder: A public relations firm’s strategy goes horribly wrong, causing a public relations disaster for their client. E&O insurance provides coverage in such situations.
- Dramatization Drama: Dramatised productions about real people or events can carry risk especially if producers or editors edit facts or scenes that create confusion between fact and fiction.
- Imprecise Props: A prop might only be on the screen for a second, but if the IP is not cleared it might lead to an intellectual property infringement claim.
What Does E&O Insurance Cover in Different Sectors?
E&O insurance isn’t limited to a specific industry. In the TV and film sector, for example, it covers the content of productions, including films, TV programs, podcasts, and webisodes. This coverage extends to what the audience sees or hears: moving images, photos, archive material, music, and titles. It’s about protecting your creative work.
What E&O Insurance Doesn’t Cover
It’s equally important to know what E&O insurance doesn’t cover. Some common exclusions include:
- Employment Practices: Claims related to wrongful termination or harassment require a separate employment practices liability insurance policy.
- Stolen Intellectual Property: If you’re accused of using patents or trade secrets without permission, E&O won’t cover you. Consider general liability insurance for some protection.
- Bodily Injury or Property Damage: For these claims, a business liability insurance policy is necessary.
- Work-Related Injuries: Workers’ compensation insurance handles work-related illnesses and injuries.
- Data Breaches: E&O insurance doesn’t cover personally identifiable information breaches. Look into a data breach insurance policy.
Who Needs E&O Insurance?
While some states and licensing boards mandate E&O insurance for specific professions, it’s also valuable in creative industries such as:
- Advertising agencies
- Marketing Agencies
- Graphic designers
Is E&O Insurance Required?
Requirements for E&O insurance vary by state and profession. Even if it’s not mandatory, having E&O coverage is a wise move. Without it, you could face hefty expenses if you’re slapped with a lawsuit.
Where to Get an E&O Insurance Quote
If you already have a business owner’s policy, consider adding E&O insurance to it. This is often more cost-effective than a standalone policy. I suggest that you bid out your insurance at least every two years to make sure you’re getting the best rates. You can compare quotes from multiple providers. Here’s a list of insurers offering E&O insurance:
- AmTrust Financial
- Axis Insurance
- Berkshire Hathaway
- Frankenmuth Insurance
- Liberty Mutual
- Markel Insurance
- Next Insurance
- State Farm
- The Hanover
- The Hartford
- Tokio Marine
- Westfield Insurance
Don’t let unexpected hiccups derail your business. Errors and Omissions insurance is your reliable ally, ensuring you stay resilient despite professional mishaps. Let us know if you’d like to get some updated bids.