$3M Professional Liability (E&O) Insurance for Video Production Companies

Video production companies asked by a brand or agency for $3M in Professional Liability (E&O) can usually meet it with one $3M primary policy or a primary plus follow-form excess.

What does a $3M requirement mean for video production companies?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work caused a client a financial loss. For video work, the coverage is often written with or alongside media liability, which responds to claims that content you made infringed a copyright or trademark, defamed someone, or invaded someone's privacy. Check which form your contract names. A $3M clause might read:

• Each claim and aggregate: the most paid for one claim, and for all claims in a policy year. $3M/$3M meets this clause.
• Claims-made: Professional Liability almost always covers claims first made and reported while the policy is active, for work after the retroactive date (the earliest work date the policy covers).
• Three years after delivery: you would usually renew every layer, with the same retroactive date, for that period.
• Layers allowed: this clause lets you combine policies. If yours is silent, confirm with the client that primary plus follow-form excess meets the clause.

Who asks video production companies for $3M?

Many production contracts ask for $1M (see $1M for video production companies) or $2M (see $2M for video production companies). $3M is less common. It usually means a bigger brand, wider distribution and closer review of clearances (permission to use music, footage and art):

• National brands running a campaign across TV, streaming and paid social at once.
• Advertising agencies whose master services agreement (MSA) with a large client sets $3M for all vendors.
• Pharmaceutical, financial and other regulated companies.

Streamers and networks often require a project-specific producer's E&O policy for one film or series instead (see the FAQ below). The annual form here is more typical for brand and agency work.

How is $3M built?

A primary policy pays first. An excess policy pays only after the primary limit is used up. "$2M xs $1M" means a $2M layer above the first $1M.

The excess layer should follow form, meaning it uses the primary policy's terms, including media liability. Every layer should share the same retroactive date and policy period.

Many Professional Liability policies pay defense costs inside the limit, so legal fees reduce what is left to settle claims. A commercial umbrella almost never covers Professional Liability.

Already carry $1M or $2M? Request new quotes through Morrow for a $3M primary or an excess layer. Report any known incidents to your current carrier before you switch.

What will underwriters ask for?

An underwriter decides whether to offer coverage and on what terms. Expect questions about:

• Your largest projects: the client, budget and where the content runs.
• Your clearance process for music, stock footage, logos and artwork, with written licenses for each project.
• Talent, location and appearance releases.
• Whether a lawyer reviews scripts with product claims.
• Use of AI tools for voices, faces or footage, and how you confirm rights to the output.
• Revenue by type of work, prior claims, the $3M contract, and your current policy.

What affects the cost?

• Reach of the content. National broadcast campaigns usually cost more to insure than internal corporate video.
• Content type. Documentaries, celebrity work and ads with product claims carry more risk.
• How the $3M is built. A single $3M policy and a primary plus excess structure can be priced differently, and quotes may vary by market.
• Claims history and clearance. Past claims can raise price.
• Retention and defense terms. Retention is what you pay on each claim before the policy pays. A higher one usually lowers premium.

Frequently asked questions

Do I need $3M Professional Liability as a video production company?

Only if your contract or client requires it. Check the insurance clause for the limit, per claim and aggregate wording, and whether excess layers are allowed. Morrow can review it with you.

What kind of claim could reach $3M for a video production company?

Claims over content that reaches a wide audience can be large. Hypothetical examples: a national ad airs with a track never licensed for broadcast, and the rights holder seeks damages. A documentary segment misstates facts about a business owner, who sues for defamation. Coverage depends on the policy wording.

Can my client be an additional insured on my $3M Professional Liability policy?

Usually not on standard Professional Liability. Some media liability forms allow it for parties your written contract names. If your contract requires it, send it to Morrow so quotes can reflect it. A certificate of insurance (a one-page proof of coverage) gives no coverage rights. See certificates for Professional Liability.

Is this the same as a producer's E&O policy for a film?

It depends on the buyer. Agency and brand vendor agreements usually mean ongoing Professional Liability or media liability. Streamer, network and distributor deliverables often mean a per-project producer's E&O policy for one film or series. Confirm which one your contract requires.

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.