I run a mobile game company with my partner, we publish to the Android market and iOS app store. That's all we do, we don't offer consulting services and we don't work with/for anyone else. Would it be beneficial to get Errors and Omissions Insurance for our company? Would we even need it?
No, it would be silly for you to purchase insurance. If somebody, outside your personal network, has approached you to buy some, they are likely a salesman and are just trying to make a commission.
As you grow, people will begin telling you that you need all this corporate mumbo jumbo. Just ignore them. It's a ridiculous expense to incur for a mobile game company in its growth stages.
Wait until you're making a decent amount of cash to pay for insurance, if at all.
Read: Anything You Want -Derek Sivers
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Whether being sued for frivolous claims or not, the simple fact is that defending your company from these allegations can be very expensive. E&O as well as D&O insurance will pay for your defence. If you simply think of your insurance premium as an attorney retainer you'll be much better off understanding the huge benefits of having coverage vs. being on your own.
Especially in today's high litigation world, copyright claims are common and getting a good E&O as well as D&O policy would be prudent for any company to get.
It is not that expensive in relation to time and money spent defending from a law suit out of pocket.
You need some form of insurance for sure. Whether it be Errors or Omissions or not, I could not tell you. I would suggest you talk to a lawyer, and then take their recommendation to a reputable insurance agent to fill your needs.
With software, there's always the possibility of having some sort of liability to your users, no matter how strict your TOS, or your SLA is, there's always a way for them to come after you. Keeping this in mind, you should do everything you can to protect your personal assets against these situations.
In addition to insurance, I would strongly urge you to register as an LLC, or similar business entity so that you will not be personally connected with your businesses liabilities. This covers debt, product, and professional liabilities. Unless of course your pledge personal assets to a bank for financing, or you do not handle your money correctly, and 'pierce the corporate veil'. Again, talk to a lawyer to find out what business entity best suites your company's needs.