Key Insurance Coverages for Printing Businesses

Whether you are just starting out in the commercial printing industry or are a seasoned veteran of this sector, understanding key liability insurance coverages mean that your business is protected without overpaying for coverages your operation doesn’t need.

Here is a look at those key coverages; working with an experienced insurance provider allows business owners to select the coverages that suit specific risk profiles:

Errors & Omissions (E&O) Insurance:

• Purpose: Protects against claims arising from mistakes, negligence, or failures to meet client expectations.
• Key Coverage Features:
  • Covers financial losses due to errors in printed materials (e.g., incorrect colors, layout issues, or spelling errors).
  • Provides protection if the business misses a critical deadline, leading to lost revenue for the client (e.g., missed marketing campaign launch).
• Exclusions: Typically excludes intentional wrongdoing or work performed without proper client approval.

General Liability Insurance:

• Purpose: Covers third-party claims for bodily injury, property damage, and personal injury (e.g., libel or slander).
• Key Coverage Features:
  • Protects against accidents involving visitors or clients on the business premises (e.g., a customer trips over equipment).
  • Covers damages if a printing company’s product causes property damage (e.g., a printing error causes damage to a customer’s equipment).
  • May include coverage for advertising injury, such as copyright infringement in promotional materials.
• Exclusions: May not cover professional errors—this is where E&O insurance steps in.

Commercial Property Insurance:

• Purpose: Protects the company’s physical assets from damage caused by fire, theft, vandalism, and natural disasters.
• Key Coverage Features:
  • Covers printing equipment (presses, cutters, and computers), inventory (paper, ink, supplies), and office furnishings.
  • May include replacement cost or actual cash value coverage for equipment.
  • Can also cover the cost of repairing or rebuilding facilities after a disaster.
• Exclusions: Often excludes flood and earthquake damage unless specifically added through endorsements.

Workers' Compensation Insurance:

• Purpose: Provides wage replacement and medical benefits for employees injured on the job.
• Key Coverage Features:
  • Covers injuries from operating machinery, chemical exposure, or repetitive stress injuries.
  • Includes rehabilitation services and compensation for permanent disability, if necessary.
  • Protects the company from lawsuits by injured employees.
• Exclusions: Does not cover injuries sustained outside the scope of employment or by non-employees (e.g., contractors).

Environmental Liability Insurance:

• Purpose: Covers claims related to pollution or environmental contamination from printing operations.
• Key Coverage Features:
  • Covers cleanup costs if hazardous chemicals (e.g., inks or solvents) leak into the environment.
  • Provides coverage for third-party claims related to environmental damage (e.g., neighboring properties affected by pollution).
  • May also cover regulatory fines and legal defense costs.
• Exclusions: Coverage may be limited to sudden incidents, requiring additional policies for gradual pollution.

Business Interruption Insurance:

• Purpose: Compensates for lost income and operating expenses during a business shutdown caused by a covered event.
• Key Coverage Features:
  • Covers lost revenue, payroll, and operating expenses while the business is non-operational (e.g., after a fire or flood).
  • May include coverage for extra expenses incurred to maintain operations temporarily (e.g., renting equipment).
  • Contingent business interruption coverage protects against disruptions caused by supplier issues.
• Exclusions: Usually requires that the interruption is caused by physical damage to insured property.

Product Liability Insurance:

• Purpose: Protects against claims arising from defective products that cause harm or financial losses to customers.
• Key Coverage Features:
  • Covers liability for defective printed materials (e.g., mislabeled packaging causing confusion or harm to consumers).
  • Provides legal defense and settlement costs if a product issue results in a lawsuit.
  • Useful for print distributors responsible for ensuring product quality across the supply chain.
• Exclusions: Coverage may exclude damage resulting from client-provided designs or content errors.

By carefully evaluating these coverages, printing companies, suppliers, and distributors can ensure that they have a robust insurance portfolio. Each policy plays a crucial role in mitigating the different risks that arise from daily operations, helping businesses protect their assets, employees, and reputation while maintaining smooth and compliant operations. Regularly reviewing policies and working with specialized insurance brokers ensures these businesses remain protected as they evolve.

To learn more about liabilities within the printing industry, click here.

To learn how to evaluate risk and liabilities coverage, click here.

In this article, David Campbell, Chief Underwriting Officer at USI, addresses types of coverage 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.