ISO: Errors and Omissions Insurance (for composers) broker

[dix]

A new client requires the composers they work with to carry Professional Liability/Errors & Omissions Insurance. It's the first time it's come up for me, and I've been at this a loonng time. An unfortunate sign of the times perhaps. E&O insurance is pretty common in the business world, but I haven't found a policy yet that covers composers.

Does anyone here carry this type of insurance? Can you recommend a broker that carries it?

[dix]

I just found a big ol thread on this at Gearslutz, but would like to hear from the thoughtful folks here at MN if they have any experience with this. https://www.gearslutz.com/board/music-f ... rance.html

[Protea]

I know about several cases concerning patents, which involved very expensive lawsuits for composers who unknowingly used a melody they had no right to.

[James Steele]

I know about several cases concerning patents, which involved very expensive lawsuits for composers who unknowingly used a melody they had no right to.

You mean copyrights, yes.

[HCMarkus]

E&O or Professional Liability policies are generally Claims-Made policies meaning they will defend and/or indemnify for losses that are reported within the policy period. So, unlike your more typical General Liability Occurrence policy, (like your Business, Homeowners or Renters policy) which covers losses that take place within the policy period, once you get on the E&O wagon, you need to keep buying the insurance until you either die or the potential for a claim to be made is no longer present.

As such, consider if your contract is going to require you to carry insurance for the next twenty or more years and bill the client accordingly!

Many such policies have so-called "Burning Limits", meaning that defense and indemnity costs come from the same pool of money. As such, the policy limit can be exhausted by legal fees, leaving no money to pay a judgment. If you have insurance and your policy limit is anywhere close to the extent of the claimant's damages, claims are a lot easier to negotiate to conclusion than if you don't have insurance. The claimant knows the carrier will have to defend and, with a burning limits policy, there may be no money left to pay a judgment. They also know that if they take a claim to judgement, collection is difficult if you are independently wealthy and virtually impossible if you are not.

There are policies out there. Good luck!