3D Printing Design Business Insurance
Getting insurance for your 3D printing design business is essential.
3D printing design businesses need to be protected against claims involving things like accidental copyright infringement, designing a faulty product, or breaching a contract.
For example, your business may use a popular copyrighted design in his work without permission to do so, accidentally print and distribute an unsafe product, or fail to meet the timeline promises outlined in a client’s contract.
We’ll help you find the most personalized and affordable coverage for your unique business.
Best Insurance for a 3D Printing Design Business
General liability insurance is — generally speaking — one of the most important insurance policies for 3D printing design business.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
That being said, your 3D printing design business will likely require additional policies on top of general liability to help it remain fully protected:
- Commercial property coverage: Shields businesses from the costs of repairing or replacing business property that has been physically damaged (e.g., by a fire).
- Product liability coverage: Protects your business from the legal costs of defending itself against claims that its products have injured someone else or damaged their property.
- Workers’ compensation coverage: Provides your workers with benefits in the event that they become injured or ill due to their job.
When buying business insurance, you have two options available to you: the traditional providers (i.e., those with a physical storefront) or exclusively online-based insurers.
While the traditional option was more popular in the past, online insurers have experienced a surge in popularity as more people have found that it can offer coverage that is just as high-quality but more affordable and quicker.
Cost of General Liability Insurance
On average, 3D printing design businesses in America spend between $450 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a 3D printing design business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Common Situations That General Liability Insurance May Cover for a 3D Printing Design Business
Example 1: While touring your business, a potential investor trips over a box, breaks an arm, and decides to sue. General liability insurance would cover your legal fees and any required settlement.
Example 2: A competitor files a lawsuit against your company for slander and libel. You disagree with these claims, but want to hire a lawyer immediately. General liability insurance would pay for your legal defense costs.
Example 3: During a meeting in your office, a customer trips on the stairs, breaks an ankle, and asks you to pay for his medical treatment. General liability insurance would cover the cost of his treatment.
Other Types of Coverage 3D Printing Design Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you strive to ensure your printed products bring satisfaction and functionality to customers, there’s always a chance someone might decide what you produced caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in your 3D printing equipment and supplies. If you own the building in which you operate, commercial property insurance would cover the cost of repairing or replacing your business-related property in the event of a fire, theft, or natural disaster. This includes structural damage to your building as well as your special equipment and supplies.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your 3D printing design business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
3D Printing Design Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
Due to the risk-prone nature of the industry, it’s generally recommended to obtain the right insurance for your 3D printing design business before it starts its operations to make sure it is protected from day one.
There may also be policy types your business will be legally mandated to carry if it wants to operate legitimately (e.g., commercial auto).
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.