Whether you’re running a corporation’s direct mail components through your presses, creating die-cut coasters for a local restaurant, or embossing an entrepreneur’s first batch of business cards, you’ve got your client’s brand in your hands—and they’re trusting you to provide a timely, high-quality product that they’re proud to share with their customers and colleagues.
What if something goes wrong? No company in the business of providing printing services to customers for a fee should be without professional liability insurance, also called errors and omissions (E&O) coverage. Here’s why:
1. Accidents Happen
The reality is that no person—and certainly no business entity—is perfect. Human oversights, digital errors, and machine malfunctions can lead to costly mistakes.
These mistakes can cost time and money, and cause a client to leave you. But worse, a customer may claim they lost money because of your professional negligence, an error, or a simple failure to perform or deliver the services agreed upon.
Consider these examples:
- You printed a box of business cards containing a misspelling, and your customer claims that they lost business because the error made their company look unprofessional.
- A customer ordered posters to promote their store’s seasonal sale, but you were two days late on delivery—and the delay resulted in lost revenue for your customer.
- Your team accidentally used the wrong contact list to print address information on 1,000 postcard mailing panels, and that segment of your customer’s prospects received the incorrect—and ultimately, more costly—offer.
These are among the many risks inherent in running a printing business, and they’re the reason commercial professional liability insurance products exist.
2. You Need Asset Protection
If a customer complaint escalates into a lawsuit—even if you never actually made a professional mistake—you will have to spend time and money looking into their claim. You may also incur legal defense costs and even end up paying damages. Without adequate E&O coverage, your business will be responsible for paying all of these costs out of pocket.
Needless to say, you are already investing significantly in your business, ensuring your machines and equipment are running smoothly, keeping your employees happy, and maintaining your day-to-day operations. E&O coverage will help protect your business, financially and legally, if the unthinkable should happen. And if it doesn’t have to be used, it still provides you with invaluable peace of mind.
3. You Owe It to Your Customers
You’re in business for a reason: to serve your clients. If you don’t have professional liability coverage to protect your assets and a lawsuit results in your financial undoing, you could lose everything you’ve worked hard to build—and that includes the clients who depend on your expertise.
Consider Your Printing Company’s Insurance Portfolio
Running a printing business leaves you susceptible to any number of health and safety risks. A fire destroys your warehouse and inventory, for example, or an employee gets injured by a printer. You may have coverage for property damage and workers’ compensation to cover these types of incidents. Don’t miss out on having coverage for when a customer is dissatisfied with your work—or a legitimate error or omission is made—and a complaint is filed.
Acadia Insurance recently enhanced its Printers Errors and Omissions coverage by adding new Correction of Work coverage. This product can help you minimize E&O claims by providing costs for corrections without requiring proof of negligence. It’s designed to cover up to $250,000 in printing service error costs, such as:
- Costs of withdrawal or inspection of defective work
- Expenses for communication, transportation, or disposal of defective work
- Wages paid to employees or independent contractors to correct printing services
- Fees to correct, replace, and/or redistribute work
For more information about Acadia’s commercial printers insurance program or to get a quote, please contact your local independent agent appointed with Acadia Insurance. To find an insurance agent near you, visit our agent locator.
Acadia Insurance is pleased to share this material with its customers. Please note, however, that nothing in this document should be construed as legal advice or the provision of professional consulting services. This material is for general informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness.