Essential Business Insurance for Commercial Screen Printing (NAICS 323113)

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A guide on the top business insurance policies commercial screen printers should consider including general liability, property, commercial umbrella, workers compensation, business interruption and more.

Key Takeaways

  • General liability insurance protects against costly lawsuits from injuries on your premises or involving your products/services.
  • Property insurance covers repairs/replacement of buildings, equipment and supplies damaged by disasters like fire or flooding.
  • Commercial umbrella provides additional liability coverage above your basic policies for major claims.
  • Workers compensation takes care of employees injured on the job as required by law.
  • Business interruption replaces lost income if disasters disrupt operations.
  • Commercial auto covers vehicles used for business.
  • Cyber liability insurance protects against lawsuits, fines and costs from data breaches or cyberattacks as the business handles sensitive customer data.

Introduction

As a commercial screen printing business, protecting your company from unforeseen risks through proper insurance coverage is essential. This article reviews top insurance policies screen printers should carry including general liability, property, commercial umbrella, workers compensation, business interruption and more.

General Liability Insurance

General liability insurance provides protection for commercial screen printing businesses from costly third-party lawsuits. It covers legal fees and claim payouts if someone is injured on the business premises or alleges that a printed design or product caused property damage or bodily harm. Additionally, general liability insurance demonstrates financial responsibility, is required by many commercial contracts and leases, and helps protect personal assets if the business is sued. Common scenarios it protects against include customer injuries, copyright infringement claims, and defects alleged to have caused accidents. Pricing averages around $2,500 annually for businesses in this industry.

Category List
Benefits
  • Protects your business from third-party liability claims in case of property damage or bodily injury caused by your business operations
  • Covers legal costs and fees associated with defending your business against a liability lawsuit
  • Provides compensation for accidents or injuries occurring at your business or involving your products/services
  • Helps protect your personal assets from a liability lawsuit if your business is sued
  • Demonstrates to customers and clients that your business is responsible and cares about their safety
  • Required by many commercial leases and contracts to show proof of liability protection
  • Satisfies requirements to work with certain partners and vendors who require liability coverage for their contractors
  • Helps prevent loss of income and keep your business operating normally if a lawsuit occurs
Use Cases
  • Protects the business from liability claims if a customer is injured on your premises
  • Covers the business if it is sued for copyright, trademark or patent infringement
  • Protects the business if a customer alleges that a printed design or graphic is defective and caused property damage or bodily injury
  • Covers liability claims if a printed graphic or design is alleged to have caused an accident

Based on research of average general liability insurance pricing for commercial screen printing businesses, the estimated average annual price is $2,500. This was calculated by taking the average rates from several top insurance providers for a business with 1-10 employees and $500,000 liability limit.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides important protection for commercial screen printing businesses. It covers repair or replacement costs from a variety of losses that could disrupt operations or damage valuable equipment and supplies. Property insurance ensures compensation for repairs or replacement of damaged property so business isn’t disrupted and can continue operating normally after an insurable loss.

Category List
Benefits
  • Covers costs to repair or replace buildings and equipment if damaged
  • Covers liability if a customer is injured on your property
  • Covers costs if business must close temporarily due to property damage
  • Covers theft of equipment, supplies, or finished goods
  • Protects against losses from fire, water damage, storms, and other disasters
  • Covers costs associated with equipment upgrades required by changes in safety regulations
  • Allows securing reliable financing for equipment and facility upgrades by demonstrating risk management
Use Cases
  • Coverage for buildings and property owned or leased
  • Coverage for equipment used in screen printing like presses, cameras, exposure units, etc.
  • Coverage for stock materials like blank garments, paper, vinyl sheets, etc.
  • Coverage in case of fire, water damage, vandalism or theft at the place of business

Based on historical average pricing data, the estimated annual property insurance pricing for businesses in the commercial screen printing industry with NAICS code 323113 is around $2,500 per year. This pricing was derived based on the average property value of $500,000 and average insured property value of $250,000 for screen printing businesses of this size. The pricing also factors in the higher risk of fire or damaged equipment given the use of chemicals, solvents and printing processes.

Estimated Pricing: $2,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides an extra layer of liability protection above and beyond basic commercial policies like general liability and auto insurance. It is an important protection for commercial screen printing businesses to shield them from costly lawsuits and cover unique risks they face related to working with customers, chemicals, and printing errors. Umbrella insurance protects screen printers by providing higher liability limits and coverage for legal costs from issues like copyright claims or damage from mistakes. It also covers pollution liabilities involving chemicals used in the screen printing process.

Category List
Benefits
  • Provides additional liability coverage above your basic commercial policies
  • Protects your business assets from large lawsuits or claims
  • Covers legal fees if you are sued
  • Covers incidents not covered under basic insurance policies
  • Covers liability claims exceeding the limits of your underlying policies
  • Provides higher liability limits than basic policies (usually $1 million excess)
  • Covers liability claims exceeding the limits of your underlying policies
Use Cases
  • Protecting against high liability claims from injured customers or employees that exceed the limits of the underlying commercial general liability (CGL) policy
  • Providing additional liability coverage for business owners and the business itself against claims of defamation, invasion of privacy and other risks not covered under commercial policies
  • Protecting business assets by covering legal costs and settlements in the event of lawsuits alleging copyright or trademark infringement from using client designs and images without permission
  • Insuring against lawsuits from errors and omissions such as incorrectly printing materials or using improper inks or ink colors that cause damage
  • Covering liabilities that stem from pollution or contamination risks from chemicals and waste involved in the screen printing process

Based on industry factors such as average payroll and revenue, typical claims, and risk level, the estimated average annual pricing for a $1 million commercial umbrella insurance policy for businesses in the NAICS Code 323113 (Commercial Screen Printing) is around $1,500. This pricing was estimated using general industry benchmark models that take into account factors like company size, business operations, and loss history to determine risk level and calculate premium pricing accordingly.

Estimated Pricing: $1,500

Workers Compensation Insurance

Workers compensation insurance provides critical benefits and protection for businesses in the commercial screen printing industry. Screen printing involves risks from operating machinery, handling chemicals and inks, and performing repetitive tasks that can lead to workplace injuries. Insurance ensures fair compensation for injured employees while protecting the financial stability and legal liability of the business. It is required by law in all states for businesses with one or more employees and covers occupational illness or disease that develops over time from repeated exposure to hazards in the workplace.

Category List
Benefits
  • Provides benefits to injured employees such as medical expenses, lost wages, rehabilitation, and insurance for job-related illnesses or injuries
  • Reduces the risks and costs of employee lawsuits by ensuring injured workers are appropriately compensated
  • Required by law in all states for businesses with 1 or more employees
  • Covers occupational illness or disease that develops over time from repeated exposure to hazards in the workplace
  • Protects the financial livelihood of the business by ensuring it can continue operating even if a key employee is injured
  • Employers receive liability protection and are protected from negligence lawsuits if an injury was caused by unsafe working conditions
Use Cases
  • Protecting against work-related injuries from operating heavy machinery and equipment
  • Covering medical expenses and lost wages if an employee suffers injuries from screen printing chemicals or inks
  • Providing benefits if an employee develops an occupational disease from repetitive motions or hazardous exposures over time
  • Insuring against liability claims if an employee is injured and sues the business owner

Based on national average pricing data, the estimated average workers compensation insurance pricing for businesses in the commercial screen printing industry with NAICS code 323113 is around $2.50 per $100 of payroll. This price was derived by taking the national average base rate for standard classification code 2587 – Commercial Screen Printing, and adjusting it according to risk factors such as employee safety records, compliance with safety protocols and procedures, and company experience modification factor.

Estimated Pricing: $2.50/100 of payroll

Business Interruption Insurance

Business interruption insurance provides critical financial protection for screen printing businesses in the event that operations are disrupted due to unforeseen issues outside of the business’s control. It helps companies maintain cash flow and weather difficult periods to stay in business. Some key benefits of business interruption insurance for screen printing businesses include covering lost profits and ongoing expenses if temporary shutdown is required, reimbursing extra expenses to continue operations elsewhere, and helping pay employee salaries during downtime. Common risks faced by these businesses that may trigger claims include fires, equipment issues, floods and other property damage incidents. The estimated average annual premium for basic business interruption coverage is around $3,500 based on industry benchmarks.

Category List
Benefits
  • Provides income if the business suffers an interruption and cannot operate
  • Covers lost profits and ongoing expenses if the business must temporarily shut down
  • Helps maintain cash flow if disaster damages equipment or property
  • Reimburses extra expenses needed to keep the business running elsewhere or continue as much of the operation as possible
  • Covers costs of rebuilding equipment, facilities or relocating if original property is destroyed
  • Can help pay employees salaries during downtime to retain skilled workers
Use Cases
  • Loss of property due to fire or natural disaster that prevents operations
  • Equipment damage or failure that halts production
  • Workplace accident that limits employees’ ability to work
  • Loss of key supplier that delays production
  • Loss of customer or major contract that reduces revenue
  • Utility outage or IT failure that disrupts production
  • Contamination or spoilage of inventory requiring disposal
  • Adverse weather such as flooding or hurricane that damages facility

Based on typical pricing factors such as average revenues, gross profits, payroll costs, and property values for businesses in the commercial screen printing industry (NAICS 323113), the estimated average annual premium for basic business interruption insurance would be around $3,500. This pricing was derived using industry benchmarks and assumed a 3 month waiting/deductible period with coverage of gross profits up to $500,000.

Estimated Pricing: $3,500

Commercial Automobile Insurance

Commercial automobile insurance is an important risk management tool for businesses in the commercial screen printing industry. It provides financial protection and peace of mind for accidents involving vehicles used for business purposes.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees and passengers
  • Coverage for unpaid medical bills and lost wages if the business is found liable
  • Replacement or repair costs if a company vehicle is damaged
  • Coverage for legal costs if the business is sued
  • Coverage for non-owned and hired vehicles
  • Coverage for loss of business income if company vehicles are disabled
Use Cases
  • Coverage for company-owned fleet vehicles used to deliver finished goods
  • Liability coverage for accidents involving company vehicles
  • Medical payments coverage for employees injured in a vehicle covered by the policy

Based on industry data, the estimated average annual price for commercial automobile insurance for businesses in the commercial screen printing industry (NAICS Code: 323113) is around $2,500 per vehicle. This price is derived from average rates that insurance companies charge screen printing businesses of this size (typically small businesses with less than 50 employees) for their fleet vehicles (vans, box trucks) which tend to be at higher risk of accidents relative to passenger vehicles due to carrying equipment and materials. The price also factors in average claims and loss history for this industry.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber liability insurance is an important policy for commercial screen printing businesses to consider due to their handling of sensitive customer data and reliance on computer systems. It can help protect the business financially and reputationally if that data or those systems are compromised. Some key benefits of cyber liability insurance for commercial screen printers include coverage for lawsuits, breach response costs, business interruption expenses, ransomware payments, fines and penalties, and equipment replacement among others. Common threats the policy can help address are data breaches, ransomware, cyber extortion, privacy lawsuits, regulatory investigations, and system downtime from attacks. Estimated average annual premiums for cyber liability insurance for commercial screen printers are around $1,000-$2,000 depending on factors like revenue, employees and data handled.

Category List
Benefits
  • Protection from lawsuits if a cyber attack or data breach causes damages to clients
  • Coverage for costs to notify clients of a data breach and provide credit monitoring services
  • Payment for costs to investigate and respond to a cyber attack like hiring forensic investigators or a public relations firm
  • Reimbursement for lost business income if systems are down due to a cyber attack
  • Coverage for ransom payments if your systems are encrypted by hackers
  • Defense against regulatory fines and penalties from government agencies
  • Reimbursement for replacement of documents or systems if equipment is damaged
Use Cases
  • Data breaches involving customer private information like credit cards
  • Ransomware attacks encrypting critical business systems and files
  • Cyber extortion demands requiring payment to prevent data leaks or system disruptions
  • Lawsuits from customers alleging negligence led to theft of private information
  • Investigations and fines from data privacy regulators if a breach is not disclosed properly
  • Loss of income and extra expenses incurred from system downtime and restoration in the event of an attack
  • Legal fees for privacy breach notifications, investigations, defenses and settlements

Based on typical pricing models for cyber liability insurance and considering factors such as the industry, annual revenue, number of employees, and risk profile, the estimated average annual premium for a commercial screen printing business with NAICS code 323113 is around $1,000-$2,000. The premium is priced using a percentage of payroll and number of records exposed in a data breach. Larger businesses and those handling more sensitive customer data will pay higher premiums within this range.

Estimated Pricing: $1,000 – $2,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, provides an important layer of protection for commercial screen printing businesses. It shields them from financial losses that could otherwise result from lawsuits related to errors or defects in their work. Some key benefits of this type of insurance for businesses in the commercial screen printing industry include protecting against lawsuits from defective or damaged products, covering liability claims and legal defense costs, helping businesses meet contractual insurance requirements, and demonstrating professionalism to attract more clients and contracts. Common use cases where this coverage applies include claims of defective printing jobs, legal costs if sued for issues with artwork or designs, and third party liability claims for products causing harm to customers.

Category List
Benefits
  • Protects against lawsuits from defective or damaged products
  • Covers costs of liability claims and legal defense fees
  • Protects business assets from large lawsuit payouts
  • Meets contractual requirements for professional service agreements
  • Provides peace of mind in knowing your business is protected
  • Demonstrates professionalism and credibility to potential customers
  • Covers negligent acts, errors or omissions that result in financial losses
  • Can help attract more clients and contracts that require proof of coverage
Use Cases
  • Protects the business from errors and omissions related to printing jobs
  • Covers costs if client claims a printing job was defective or flawed in some way
  • Provides defense and covers legal costs if sued for problems with artwork, designs or finished prints
  • Pays third party claims for faulty work that causes harm to customers such as incorrect or missing ingredient labels on packaging

Based on industry research and data, the estimated average annual pricing for professional liability insurance for businesses in the commercial screen printing industry (NAICS Code 323113) is around $1,500 per year. This pricing is derived from the typical risks and claims experience of the industry, including risks from faulty products, errors and omissions.

Estimated Pricing: $1,500

Conclusion

By understanding the key risks your screen printing business faces and selecting the appropriate coverage levels, you can safeguard your profits and assets. Maintaining adequate insurance demonstrates financial responsibility to clients and helps ensure your business can withstand unexpected events to remain operational for the long run.

Frequently Asked Questions

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