I shot a scene with a new collaborator. It sold well. Six months later, I got a lawyer’s letter: “My client never signed a commercial release. We are demanding 100% of the profits and removal of the content.” I checked my drawer—I lost the paper. I called my insurer to see if they would cover the settlement.
Key Takeaways
- General Liability Won’t Work: General Liability covers “Bodily Injury” (someone slips). It does not cover contract disputes or missing paperwork.
- You Need Media Liability (E&O): “Errors and Omissions” insurance is specifically designed for mistakes like “I forgot to get a signature” or “I lost the release.”
- Digital Releases are Safer: Paper gets lost. Use digital signing platforms (HelloSign/DocuSign) with biometric audit trails.
- 2257 Compliance is Federal: Beyond the lawsuit, failing to have these records is a federal crime in the US. Insurance does not cover criminal defense for 2257 violations.
The “Why” (The Trap): The “Breach of Contract” Exclusion
Insurance covers negligence, not stupidity or laziness. If you fail to get a contract signed, that is often viewed as a “Breach of Contract” or a failure to obtain necessary licenses.
Most standard policies exclude claims arising from “breach of contract.” However, Media Liability policies specifically cover “defense against claims of unauthorized use of image/likeness.” This is the subtle difference that saves your bank account.
The Investigation: “I Called Them”
I searched for policies that cover “I messed up the paperwork.”
1. The General Liability Policy (Next / Thimble)
- Response: If the performer sues for “Copyright Infringement” or “Right of Publicity,” a standard GL policy might have a small sub-limit for “Personal and Advertising Injury.”
- Risk: They will likely deny it if they find out you had no contract at all, arguing you knowingly violated rights.
2. The Media Liability Specialist (Hiscox / XIC)
- Response: This is their bread and butter. A Media E&O policy covers “misappropriation of likeness” and “violation of right to privacy.”
- The Benefit: They pay the lawyer to negotiate the settlement. They usually pay the settlement too (up to the limit).
3. The 2257 Compliance Service
- Analysis: Not insurance, but record-keeping services (like ROKK) ensure you have the docs. Insurance might require you to use one of these services as a condition of coverage.
Comparison Table: Liability Coverage Types
| Claim Type | General Liability (CGL) | Media Liability (E&O) |
| Slip and Fall on Set | Covered | Not Covered |
| “You Stole My Likeness” | Maybe (limited) | Covered |
| “You Underpaid Me” | Denied (Contract dispute) | Denied (Contract dispute) |
| Lost Model Release | Denied | Covered (Defense costs) |
Step-by-Step Action Plan
- Switch to Digital Releases: Stop using paper. Use an app that captures the ID photo, the signature, and the timestamp in a PDF. Save this in three places (Cloud, Hard Drive, Printed).
- Get Media E&O Insurance: If you are filming with others regularly, this is mandatory. A lawsuit for “Right of Publicity” can easily reach
50,000+.Thepolicycosts 50,000+.Thepolicycosts1,000/year. - Settle Quickly: If you don’t have the release, you will lose. Do not fight it in court. Negotiate a settlement to pay them a percentage or remove the content.
- Check 2257 Records: Ensure you have the photocopies of their ID. If you don’t, you are risking federal prison, not just a lawsuit.
FAQ
Q: Can I use a text message as a release?
A: In a pinch, maybe. But “implied consent” is weak in court. A formal release with explicit “Commercial Use” language is required to be safe.
Q: If I delete the video, does the lawsuit go away?
A: No. They can still sue you for the profits you made while it was up. However, taking it down immediately shows “good faith” and mitigates damages.
Q: Does insurance cover the back-pay I owe them?
A: No. Insurance pays for the defense and damages (penalties), but it won’t pay the money you contractually owed them in the first place.
[IMAGE: Screenshot of a digital model release app showing “ID Capture” and “Signature” fields.]