Last Updated: May 30, 2024, 1:31 pm by TRUiC Team

Packaging Design Business Insurance

Getting insurance for your packaging design business is essential.

Packaging design businesses need to be protected against claims of things like product liability, false advertising, and breach of contract.

For example, a type of package your company designed is found to be defective, resulting in damage to items they contain.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Packaging Design Business

General liability insurance is — generally speaking — one of the most important insurance policies for packaging design businesses.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

You may find that general liability fails to provide enough protection for your packaging design business. If so, consider some of the following additional policies:

  • Product liability insurance: Because the packages you design will contain valuable items, product liability is important to protect your company from claims that those packages were defective and caused damage to those items.
  • Business interruption insurance: Your company, like any other business, is susceptible to events that could interrupt its operation. This policy protects your company from the loss of income in the event it is temporarily shut down.
  • Commercial auto insurance: As your company will probably need vehicles to operate, you need commercial auto insurance for protection from accidents.

We understand it can be hard to choose an insurance provider. As a first step, consider the two primary groups these insurers fall into.

  • Traditional brick-and-mortar insurers — Providers with a physical store and an insurance agent. Firms such as Nationwide and The Hartford are included in this category.
  • Online insurers — Providers that are based purely online and utilize AI instead of insurance agents. Firms such as Next and Tivly are included in this category.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, packaging design businesses in America spend between $400 - $1500 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a packaging design 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Packaging Design Business

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Example 1: A direct competitor decides that the packaging you’ve designed for a client is too similar to their packaging. General liability insurance would likely cover the claim.

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Example 2: While attempting to open your packaging, a customer severely cuts his hand. He blames the injury on your packaging and files a lawsuit demanding that you take full responsibility. General liability insurance could help cover the costs of treating the injury and the lawsuit.

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Example 3: A client is visiting your manufacturing facility when a piece of machinery malfunctions and injures her head. General liability insurance would likely help the business cover the costs of the resulting medical bills.

Other Types of Coverage Packaging 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:

Commercial Property Insurance

Business owners who choose to own rather than lease their space will need commercial property insurance to protect their space from vandalism, theft, man-made disasters (e.g., fires, etc.), and natural disasters. However, even if renting a space, commercial property insurance can be useful, as it can cover the cost of repairing or replacing damaged supplies and equipment as well.

Product Liability Insurance

Product liability insurance covers any products a company makes or sells. If a customer files a lawsuit claiming that packaging you designed or made caused them harm, product liability insurance will help cover the cost of defending yourself in court, as well as any settlement payments.

Commercial Umbrella Insurance

Commercial umbrella insurance provides further support in the case of damaging liability claims that max out a general liability policy’s limits. Considering lawsuits can easily total well into six-figure territory, commercial umbrella insurance is often the only form of protection that can save a company from going under.

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 packaging 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.

Packaging 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.

"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.

A packaging design business will face considerable financial risks during the normal course of business. That’s why it needs business insurance from the start.

In fact, it is highly likely that certain policies will be a legal requirement for your packaging design business to be able to operate.

Not necessarily. Certain exceptions may be written directly into your packaging design 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.