Screen Printing Business Insurance
Getting insurance for your screen printing business is essential.
This is because — as the owner of a screen printing business — you will need to protect your business’s assets against a variety of different risks, such as those that relate to trademark infringements, contract law violations, and commercial property damage.
If you decide to hire staff, you will also likely be required to purchase workers’ compensation insurance in order to protect yourself against employment-law disputes.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Screen Printing Business
General liability insurance is — generally speaking — one of the most important insurance policies for screen printing businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, it is important to note that a general liability policy will not protect your business from all of the foreseeable risks that it will be privy to.
This means that you will likely benefit from purchasing additional coverage, such as:
- Workers’ compensation insurance — Protects your business’s assets from employment law disputes (e.g., bodily injuries, payment disputes, etc.).
- Intellectual property insurance — Protects your business’s assets against trademark infringements.
- Commercial property insurance — Covers the cost of repairing and/or replacing your business’s commercial screen printing equipment.
You will also need to find the right business insurer. There are two options to choose from as a small business owner in 2024:
- Traditional brick-and-mortar insurers (e.g., Nationwide, CNA, etc.).
- Online insurers (e.g., Tivly, Next Insurance, etc.).
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Cost of General Liability Insurance
On average, screen printing businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a screen printing business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- 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.
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Common Situations That General Liability Insurance May Cover for a Screen Printing Business
Example 1: One of your employees is transferring supplies from their vehicle into the inventory room using a metal pushcart. As they stop to prop open the door, they lose control of the cart and it smashes into the luxury vehicle of a customer, causing extensive damage. Your general liability insurance policy will likely cover the cost of repairs and your legal fees if there is a lawsuit.
Example 2: While taking a tour of your production floor, a customer trips over an extension cord and falls into some of the machinery. They suffer serious injuries and threaten to sue. General liability insurance will likely cover the cost of their medical bills. Additionally, your policy will likely pay for your legal fees and any awarded damages or settlements in a lawsuit.
Example 3: A customer has arranged to pick up an order before the shop opens. The customer enters the building while your cleaning crew is still at work and slips on the wet entrance floor. They hit their head in the fall and break their wrist. General liability insurance will likely pay for their medical expenses and any other damages associated with a possible lawsuit.
Other Types of Coverage Screen Printing 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:
Workers’ Compensation Insurance
Workers’ compensation insurance is designed to cover your employees in the event of a workplace accident. This coverage is typically required by state law and helps to cover medical bills, disability benefits, and, in severe cases, even death benefits related to workplace injuries.
Product Liability Insurance
If you produce an item that is found to be defective or otherwise causes harm to your customers, you can be held liable for any related damages. With product liability coverage, you can protect your business in the event of a lawsuit and rest easy knowing that legal fees and any awarded settlements will be covered by your insurance policy.
Commercial Auto Insurance
Whether your company has a small fleet of delivery vans or you use your private vehicles for business duties, you should invest in commercial auto insurance. Keep in mind that your personal car insurance policy will not protect you or your employees in the event of a work-related accident on the road.
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 screen printing 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.
Screen Printing 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.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Generally speaking, yes. This is because you will want to make sure that you have purchased your business insurance before any liability arises, and this could theoretically occur as soon as you begin operating.
For a screen printing business, we recommend purchasing general liability coverage, as well as intellectual property and commercial property insurance.
Not necessarily. Certain exceptions may be written directly into your screen printing business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
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.