Errors and Omissions Insurance, a.k.a. Professional Liability, is a type of insurance that protects companies, their workers, and other professionals against claims of inadequate work or negligent actions brought by a third party.
This type of policy affords coverage for claims brought against you for:
- Invasion of statutory of common law rights of privacy or publicity
- Libel, slander, or other forms of defamation
- Unauthorized use of names, trademarks, ideas, etc.
- Infringement of copyright
- Breach of implied or implied in fact contract arising out of alleged submission of any literary, dramatic, musical, or other similar material or breach of trust and confidence arising out of any such submission
Errors and Omissions Insurance often covers court cost and any settlements up to the amount specified by the insurance contracts. This kind of liability insurance is generally required for professional advice-giving or service-providing businesses and this of insurance is typically required when creating and/or producing projects. Distributors will require E&O prior to completing a distribution deal.
Beware! E&O is carefully underwritten and has many underwriting questions possibly including attorney’s opinion letters and title searches.
Don’t leave this to the last minute!
PDF Version of What is Errors and Omissions Insurance