We've had a very large Fortune 500 company for a client for a number of years. We mostly do training video for a very small division of the company and not a lot of dollars change hands. Almost a year ago they decided that we should have a contract so we've been waiting. Now they're ready, but the fine print includes a surprise requirement for Errors and Omissions insurance that will cover work we produce for them. We just got a quote that's about $2,600 for a year. Anyone else run into this? Anyone found a better rate?
[Craig Sawchuk]"that's about $2,600 for a year. Anyone else run into this? Anyone found a better rate? "
That's cheap. E&O for a new series we're working on is $5,000+
Quite honestly in this situation, the client should be carrying the insurance since I'm assuming you're getting all the scripting material from them. It would be their error and omission if something was left out or incorrectly stated.
In our case, it will be our fault if we leave something off the show or state something incorrectly.
This insurance is a necessary evil and does protect you and your client from someone saying, "I did what you said and I was hurt/lost money/caused damage/etc. If you end up paying for the insurance, don't sweat it, just add it to your invoices as some production fees, an extra hour or two of editing, etc... over the next year so it doesn't appear as one large chunk. This is normal for productions.
Yeah I've seen it in the past when we've been involved with broadcast documentary and feature work, but it's usually specifically for the project. We've been doing corporate work for over 20 years and for some very recognizable corporations, but no one has asked for this before on corporate work that primarily has an in-house audience. Unfortunately they aren't at all flexible and just want CYA insurance if we use footage music or something that we didn't have appropriate insurance.