$2M Professional Liability (E&O) Insurance for Video Production Companies

If a brand, agency or network asks your video production company for $2M, it wants Professional Liability (E&O) that pays up to $2M per claim, often with media liability included.

What does a $2M requirement mean for video production companies?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your services caused a client a financial loss. For video work, the policy often needs to include media liability. A $2M clause might read like this:

• Per claim and aggregate: the most paid for one claim, and for all claims in a policy year.
• Media liability: some general Professional Liability forms exclude intellectual property claims, so check whether yours does.
• Claims-made: the policy covers claims made while it is active, for work done on or after the retroactive date (the earliest date of work the policy covers). The sample clause also asks you to keep coverage for two years after delivery. See how the retroactive date works.

Who asks video production companies for $2M?

The limit reflects the client's exposure, not your crew size. Common sources:

• National brands hiring you for commercials or paid social campaigns.
• Advertising agencies passing their client's terms down to you.
• Publishers and platforms buying branded content.
• Large companies commissioning training, investor or launch videos.
• Healthcare, finance and other regulated clients, where a wrong claim in a video can lead to a complaint.

Smaller clients and local businesses often ask for $1M (see $1M for video production companies). A $1M/$2M policy pays up to $1M on any one claim, while $2M/$2M pays up to $2M on one claim. Very large campaigns may ask for $3M, which is rarely available online. Morrow can help you find it (see $3M for video production companies).

How is $2M built?

At $2M, the limit is usually one primary policy (the policy that pays first) at $2M/$2M. A $1M primary plus a $1M excess layer (extra limit that sits on top of the primary) that follows form, meaning it uses the same terms, can sometimes reach $2M. If the clause does not mention layers, confirm with the client that primary plus follow-form excess meets it.

A commercial umbrella almost never covers Professional Liability (see Does a commercial umbrella cover Professional Liability?). Clients usually cannot be added as an additional insured on Professional Liability, though it varies by form. Contracts often accept a certificate of insurance, which only shows coverage exists. If your contract asks for additional insured status, send it to Morrow to review. Many policies pay defense costs inside the limit, so legal fees reduce what is left for a settlement. For an original series or film, networks and distributors usually want a separate producer's E&O policy, a different form from the Professional Liability here.

What will underwriters ask for?

An underwriter is the insurer's decision maker on whether to offer coverage and on what terms. They usually ask video production companies about:

• Your work mix: commercials, corporate video, documentaries, music videos and live events.
• How you clear rights: music licenses, stock footage, talent releases and location releases.
• Whether a lawyer reviews content that names real people or competing products.
• Where content runs: broadcast, streaming, paid ads or internal use only.
• Your use of freelancers and AI tools, and how you back up raw footage.
• Revenue, largest contracts, prior claims, and your current policy and retroactive date.

What affects the cost?

• Type of content. Documentaries about real people may cost more to insure than internal training videos.
• Clearance process. Written releases and licenses on every project can help.
• Revenue and client size. Bigger budgets mean bigger possible losses.
• Claims history. Prior claims can raise the price or narrow options.
• Limit and retention. A higher limit often costs more. A higher retention (the amount you pay on each claim before the policy pays) often lowers cost.

Frequently asked questions

Do I need $2M Professional Liability as a video production company?

Only if your contract or client asks for it. Larger brands, agencies and media buyers often do. Here are hypothetical claims that show why. A brand pulls an ad after a song in it turns out to be unlicensed, then demands you pay to recut it. A person filmed in the background says they never agreed to appear. A drive fails and raw footage from a one-time event is lost. Policy wording decides whether any of these is covered. Costs to redo work or return fees are often excluded even when the copyright claim is covered. Loss of footage is sometimes excluded and may need separate property or data coverage.

Is $1M/$2M enough if my contract says $2M per claim?

Usually not, because a $1M/$2M policy pays up to $1M per claim, so request new quotes for a $2M/$2M policy through Morrow, keeping your retroactive date where the market allows. Start the new policy by the date the contract requires, and keep your current one in force until then. Report anything that could become a claim to your current carrier before it ends.

Does General Liability cover a copyright claim over a video I made?

Usually not for the work you deliver to a client. General Liability is mainly for injuries and property damage, and many policies limit or exclude claims tied to content you produce for others.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.