How to Evaluate Risk and Liability Coverages for the Printing Industry

Evaluating liability insurance coverage requires a detailed, systematic approach to ensure that all potential risks are adequately addressed. Printing companies, suppliers, and distributors need to assess their specific exposures, identify appropriate insurance products, and review policy terms carefully to avoid gaps in coverage.

Here are some key steps and considerations in evaluating liability insurance policies for the commercial printing industry:

Steps for Evaluating Liability Insurance Coverage

1. Conduct a Risk Assessment:

• Begin by identifying all potential risks — both professional and operational — that could impact your business.
• Consider the type of printing performed (offset, digital, screen printing), hazardous materials used, supply chain dependencies, and contractual obligations.

2. Align Insurance Coverage with Risks:

• Ensure that the policies selected match your business operations. For example, a print distributor may need more focus on errors & omissions (E&O) coverage, while a printer may require more robust equipment breakdown coverage.
• Evaluate policies for industry-specific risks, such as environmental liability for companies that use chemicals or inks.

3. Review Policy Limits and Deductibles:

• Confirm that the policy limits are sufficient to cover the financial impact of a worst-case scenario, such as a product recall or a severe workplace injury.
• Evaluate deductibles and self-insured retentions to ensure they align with your business's cash flow and risk tolerance.

4. Evaluate Endorsements and Exclusions:

• Look for endorsements that add coverage tailored to printing industry risks (e.g., coverage for professional mistakes or missed deadlines).
• Pay special attention to policy exclusions that could leave you exposed, such as exclusions for environmental pollution or intellectual property disputes.

5. Assess Coverage for Third-Party Risks:

• If the business outsources printing services or relies on multiple suppliers, confirm that policies cover risks associated with third-party errors and disruptions.
• Ensure that contracts with vendors and clients have appropriate insurance clauses, such as "additional insured" provisions.

6. Analyze Business Interruption and Supply Chain Coverage:

• Verify whether business interruption insurance will cover downtime caused by equipment malfunctions, supply chain issues, or natural disasters.
• Check if the policy includes contingent business interruption coverage, which protects against delays or disruptions from suppliers or contractors.

7. Review Claims Handling and Insurer Reputation:

• Evaluate the insurer’s claims process to ensure they provide timely support and fair settlements in the event of a claim.
• Choose an insurer with industry expertise and a strong financial rating to ensure reliability over the long term.

It is critical to work with insurance underwriters who understand the complexities of the printing industry, including the third-party suppliers, distributors, and design agencies that fulfill supply chain needs. A qualified insurance company can help business owners ensure that coverages are adequate for both expected and unexpected risks, giving the printing business an effective shield against the financial, operational, and reputational harms associated with a claim.

In this article, David Campbell, Chief Underwriting Officer at USI, addresses risks for companies in the printing community. USI is an insurance broker that administers the PRINTING Alliance Insurance Program, a valuable member benefit and resource to PUA members. To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.