Printing Errors and Omissions: Key Concepts for Risk Management

In today’s visually driven world, commercial printing plays a vital role in shaping how businesses communicate their brand identity and message. From eye-catching marketing materials to professional business cards and product packaging, every printed piece represents a brand’s promise to its customers. Precision and consistency are essential; even minor printing errors can undermine a brand’s credibility and diminish its impact.

A recent printing error – caused by accidental or even malicious means – highlights how errors or misprints may result in significant reputational and financial harm for both the printing operation and its clients. In this guide, we will explore key concepts for managing risks associated with printing errors and omissions.

To learn more about insurance solutions for the commercial printing sector, visit the PRINTING United Alliance Insurance page at: https://www.printinginsurance.org/business-coverages/.

Mattel in the News: An Embarrassing Printing Error

In November, 2024, toymaker Mattel suffered severe reputational harm when a misprinted website address appeared on packaging for its line of “Wicked” dolls themed after the movie of the same name. Instead of pointing to the Universal Pictures’ official movie site, the URL instead directed visitors to a pornographic website.

Although the company raced to withdraw misprinted product packaging from store shelves, numerous dolls were sold to consumers. In an effort to repair its reputation, the company urged buyers to destroy the misprinted packaging and to contact the company’s customer service center for more information.

It is unknown if the misprint was accidental or was done after design teams and printers completed their review and acceptance procedures; malicious actors could have swapped out the adult-site URL. Mattel’s internal investigation was not made public, but this incident highlights the need for robust procedures – and errors and omissions insurance – to protect against accidental or malicious printing errors.

Common Claim Categories

In the wake of the Mattel printing error, it is essential to understand the role of printers liability insurance and the types of claims that result from misprints.

The two most common categories of claim are:

• Bodily injury or property damage arising out of the printing services
• “Correction of work” – the costs to correct the work, which are typically an extra expense incurred by the printer.

Defense costs are an integral part of the coverage plan for many Printer’s Professional Liability insurance programs. In the case of Mattel, investigation into the circumstances of the misprint likely included reviewing the review and acceptance protocols of both the printer and the customer to determine whether a breach of professional conduct occurred after sign-off. If such a breach did occur, the customer would have a liability case against the printer and defense cost coverages would apply.

From there, a skilled team of insurance claims and legal professionals determines actual damages and undertakes negotiation to find suitable compensation for any printing error or omission.

Key Risk Management Strategies

When it comes to risk management in the commercial printing industry, three key principles can significantly reduce the likelihood of costly errors and omissions:

1. Documentation of Acceptance: Clear and formal documentation of a client’s approval of the printed product is critical. This process ensures that clients have reviewed and signed off on the quality, accuracy, and specifications of the materials before production begins. By obtaining documented acceptance, printers can protect themselves from disputes, as the client has acknowledged that the final product meets their expectations.
2. Retention of Records: Keeping thorough records of proofs, revisions, client approvals, and all related correspondence is essential. Treating this information with the same care as legal or tax records is recommended. Using cloud storage solutions not only facilitates easy access but also ensures backups are secure and retrievable in case of disputes or audits. Proper record retention helps demonstrate accountability and provides a clear paper trail to resolve potential issues.
3. Quality Control: Implementing rigorous quality control measures is indispensable for preventing production errors. Printers should develop a strong understanding of the project’s specific attributes and ensure these are met consistently. Periodic sampling of production runs against the client-approved proof helps catch deviations early, minimizing waste and errors while safeguarding client satisfaction.

By adhering to these principles, commercial printers can enhance their processes, protect their reputation, and maintain strong client relationships while mitigating the risks of errors and omissions. Working with an experienced team of insurance professionals can help printing operations find the appropriate coverages needed for specific risk profiles – including the risks associated with printing errors.

To learn more about insurance solutions for the printing sector, visit the PRINTING United Alliance Insurance page at: https://www.printinginsurance.org/business-coverages/.

In this article, David Campbell, Chief Underwriting Officer at USI, addresses how natural disasters can affect your business. USI is an insurance broker that administers the PRINTING Alliance Insurance Program, a valuable member benefit and resource to Alliance 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.

The preceding content was provided by a contributor unaffiliated with Printing Impressions. The views expressed within may not directly reflect the thoughts or opinions of the staff of Printing Impressions.