3D Printing Insurance Policy Information
3D Printing Insurance. Also called additive manufacturing, it's a process that was derived from 2D printing technology. It allows the production of objects by creating individual layers and adding them in increments. The layers of filament that are individually created by 3D printers are deposited, layer-by-layer, on a print bed that lowers an object until it is completed.
While this may appear to be new technology, the concept and basis for this type of production has been around since the 1980s. Today, there are a number of 3D printing methods and is exploding both in commercial and home use.
Commercial use includes gun making, fabricating prosthetics, machine parts, fabrics, rigid looms, toy models, on-demand replacement parts, instruments, and many other examples. Home use is at a lower stage of growth but is primed to rapid growth once 3D printers become more affordable.
Most businesses can get away with having commercial general liability insurance, which is enough to protect them against liability from property damage or injury to third parties.
However, many of these policies also have tech exclusions, including losses brought on by cyber-related issues, which could be caused by a software error or a defective product.
Despite the fact that 3D printing has been around for over thirty years, its growth and commercial use have been tedious until recent years. However, many companies have been caught off guard by the rapid growth in the demand for 3D printing applications and services, which has also left many businesses exposed to potential liability claims.
As a business owner that uses 3D printing as part of offering a service or its product development cycle, it is essential to protect yourself against risks associated with the industry. That's where having 3D printing insurance will help you.
3D printing insurance protects your additive manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked 3D printing insurance questions:
- What Is 3D Printing Insurance?
- How Much Does 3D Printing Insurance Cost?
- Why Do 3D Printers Need Insurance?
- What Type Of Insurance Do 3D Printers Need?
- What Does 3D Printing Insurance Cover & Pay For?
What Is 3D Printing Insurance?
3D printing insurance is a type of insurance that covers the risks associated with 3D printing technology and its use in various industries. This type of insurance may include coverage for liability, property damage, and loss of income due to equipment failure or malfunction.
It may also include coverage for intellectual property infringement, product liability, and errors and omissions. This insurance is typically designed for businesses that use 3D printing technology in their operations, such as manufacturers, product designers, and engineers.
How Much Does 3D Printing Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small 3D printing businesses ranges from $57 to $79 per month based on location, products printed (manufactured), revenue, claims history and more.
Why Do 3D Printers Need Insurance?
3D printers need insurance for several reasons:
Protection against damage or loss: 3D printers are expensive pieces of equipment and can be damaged or lost due to accidents, natural disasters, or theft. Insurance can cover the cost of repairs or replacement.
Liability coverage: If someone is injured while using a 3D printer, they may sue the owner for damages. Insurance can provide liability coverage to protect against such claims.
Business interruption coverage: If a 3D printer is out of commission due to damage or loss, it can cause significant financial losses for a business that relies on it for production. Business interruption coverage can provide financial assistance to help cover lost revenue.
Product liability coverage: If a product created by a 3D printer is defective and causes harm, the owner may be held liable. Product liability coverage can provide protection against these claims.
Overall, 3D printers are expensive and complex equipment that can be used for a variety of purposes, from prototyping to manufacturing. As such, protecting these printers from damage or loss, as well as potential liabilities that may arise, is important for any business or individual that owns one.
As the insurance industry gains greater awareness to help spur policy language changes and, perhaps, new 3D printing insurance policy forms to meet these emerging risks.
What Type Of Insurance Do 3D Printers Need?
3D printing, also known as additive manufacturing, is a process of creating three-dimensional objects by building up successive layers of material based on a digital model. It has the potential to revolutionize the way products are designed and manufactured, and has a wide range of applications, from prototyping and product development to end-use manufacturing.
The two areas where using 3D printing may expose a business are intellectual property and liability. However, case law is still being developed, so the full extent of the issues is relatively unknown. That's why companies need to review their current insurance portfolios, ensuring that they are covered for potentially new liabilities.
If you own a small business that uses 3D printers, it's important to consider getting insurance to protect your business from potential risks. Here are some things to consider when shopping for small business insurance for 3D printers:
Property coverage: This type of insurance covers damage to your 3D printers, as well as other business property, such as computers and office equipment. It can also cover the cost of replacing lost or stolen property.
Liability coverage: This type of insurance protects your business from legal claims arising from accidents or injuries that occur on your property. For example, if someone is injured by a malfunctioning 3D printer, liability coverage can help cover legal costs and any settlements or judgments.
Business interruption coverage: This type of insurance can help cover the costs associated with a temporary shutdown of your business due to a covered loss, such as a fire or natural disaster.
It's important to carefully review the terms and coverage of any small business insurance policy you are considering, and to work with an insurance broker or agent who has experience with the specific needs of businesses that use 3D printers.
Product Liability Coverage
If you use your 3D printers to create products that are sold to customers, this type of insurance can protect your business from claims related to defects or malfunctions in the products you manufacture.
It would help if you started by reviewing the business's current portfolio of policies and coverage. If you have commercial general liability insurance, it may only protect against damage or injury to persons or property, which could allegedly result from products sold, manufactured, or disposed of by the company. The coverage will include defense costs that the company may incur to fend off lawsuits.
Now for most companies, the coverage under the general liability policy is subject to various policy exclusions, which may preclude or limit claim coverages that arise from the use of 3D printing.
For instance, your policy could include an exclusion for various cyber-related losses, which could be caused by a software error producing a defective product. That's why a review of the policy is needed before understanding if you are well covered.
Businesses that sell designs used by 3D printers should also take a closer look at their insurance coverage to ensure that there aren't any gaps. Yes, your policy most probably covers products that are sold, handled, manufactured, disposed of, or distributed, but it may not cover the distribution of designs used by others.
So, if the product you design, the design for which you sell is defective, you are open to a potential lawsuit. It is a scenario that's being played out in many parts of the world and for many businesses even today.
As a company that relies on 3D printing technology, it would be worth considering product recall insurance which will help protect against a liability, which could stem from defective design plans or the use of defective materials. Any of these factors could result in a product recall.
Intellectual Property Coverage
The other area of concern is intellectual property because many issues can arise from it when using 3D printers. General liability policies don't cover intellectual property claims; you will need to get specialized intellectual property coverage.
The policy will cover defense costs if the company is sued and also include "pursuit" and "enforcement" coverage which helps the business pursue infringers.
Coverage For Other Potential Liabilities And Risks
Now added to the risks we discussed above, there are several other potential liabilities and risks that may stem from using 3D printing technology and needs to be considered by a company when reviewing existing coverage. These may include coverage for: Technology related omission and errors, environmental liabilities, equipment breakdown, and the losses that stem from it, data breach-related losses, or those caused by cyberattacks.
We'll examine a few of these risks below:
Equipment Breakdown and losses cause by business interruption: It isn't uncommon for 3D printers to breakdown, but repairing them can be costly. It becomes imperative for businesses to ensure that their repairs and replacement for 3D printing technology are covered under the current policy.
Separate equipment breakdown coverage is imperative because 3D printers break down. That can lead to delays, or the printer may need to be replaced because the company isn't able to manufacture the product without it. Getting good business interruption insurance may be able to cover the gap.
Losses Caused by Cyberattacks: 3D printers do bring with them the risks associated with cyberattacks. 3D manufacturing involves software that is susceptible to hacking. Hackers could potentially steal or maybe even alter the intellectual property, resulting in shutting down production.
The risk is exponentially more significant for traditional manufacturing companies that have in the past not focused as much on cybersecurity. To ensure adequate protection from cybersecurity threats, businesses should have coverage for security liabilities and medical liability.
The liability can be tailored to various first-party costs like business interruption, data restoration, and security breaches.
What Does 3D Printing Insurance Cover & Pay For?
3D printers can be sued for various reasons, including intellectual property infringement, product liability, and personal injury. Insurance can provide financial protection in these situations. Here are some examples of how insurance can help pay for lawsuits:
Intellectual Property Infringement: Reason for lawsuit: A 3D printer manufacturer or user might be sued if they create and distribute an object that infringes on someone else's patent, copyright, or trademark.
Insurance solution: Intellectual Property (IP) insurance or Professional Liability Insurance can help in this situation. IP insurance covers legal expenses and potential damages incurred during a lawsuit, protecting the 3D printer manufacturer or user from financial loss.
Product Liability: Reason for lawsuit: A 3D printer manufacturer could face a lawsuit if their device malfunctions or causes a defect in the printed object, leading to injury or property damage. Similarly, a user could be sued for creating and selling a faulty product that results in harm to a customer.
Insurance solution: Product Liability Insurance can help protect both manufacturers and users in these situations. This insurance covers legal defense costs, settlements, and judgments related to claims of injury or property damage caused by a defective product.
Personal Injury: Reason for lawsuit: A 3D printer user might be sued if their actions, such as improper use or handling of the 3D printer, result in injury to another person.
Insurance solution: General Liability Insurance can offer protection in this case. This insurance covers legal fees, settlements, and judgments related to claims of personal injury caused by the insured's negligence or actions.
In each of these scenarios, insurance can help pay for the costs associated with a lawsuit, including legal defense fees, settlements, and judgments. This financial protection can be invaluable for businesses and individuals involved in 3D printing, as it can mitigate the financial risks associated with legal disputes.
Commercial Insurance And Business Industry Classification
- NAICS CODE: 333249 Other Industrial Machinery Manufacturing
Description for 333249: Other Industrial Machinery Manufacturing
333249 Other Industrial Machinery Manufacturing: This U.S. industry comprises establishments primarily engaged in manufacturing industrial machinery (except agricultural and farm-type; construction and mining machinery; food manufacturing-type machinery; semiconductor making machinery; sawmill, woodworking, and paper making machinery; and printing machinery and equipment).
- Additive manufacturing machinery manufacturing
- Anodizing equipment manufacturing
- Beaming machinery for yarn manufacturing
- Bleaching machinery for textiles manufacturing
- Blow molding machinery for plastics manufacturing
- Bobbins, textile machinery, manufacturing
- Boot making and repairing machinery manufacturing
- Braiding machinery for textiles manufacturing
- Buttonhole and eyelet machinery manufacturing
- Calendering machinery for plastics manufacturing
- Calendering machinery for textiles manufacturing
- Camelback (i.e., retreading materials) machinery manufacturing
- Carbonizing equipment for processing wool manufacturing
- Carding machinery for textiles manufacturing
- Cement kilns manufacturing
- Chemical kilns manufacturing
- Chemical processing machinery and equipment manufacturing
- Chip placement machinery manufacturing
- Cigarette making machinery manufacturing
- Circuit board making machinery manufacturing
- Circular knitting machinery manufacturing
- Clayworking and tempering machinery manufacturing
- Cloth spreading machinery manufacturing
- Combing machinery for textiles manufacturing
- Compression molding machinery for plastics manufacturing
- Concrete products forming machinery manufacturing
- Cordage and rope (except wire) making machines manufacturing
- Distilling equipment (except beverage), including laboratory-type, manufacturing
- Drawing machinery for textiles manufacturing
- Drying kilns, lumber, manufacturing
- Drying machinery for textiles manufacturing
- Dyeing machinery for textiles manufacturing
- Electron tube machinery manufacturing
- Electroplating machinery and equipment manufacturing
- Embroidery machinery manufacturing
- Extruding machinery for plastics and rubber manufacturing
- Extruding machinery for yarn manufacturing
- Fermentation equipment, chemical, manufacturing
- Finishing machinery for textile manufacturing
- Footwear making or repairing machinery manufacturing
- Fractionating equipment, chemical, manufacturing
- Frames for textile making machinery manufacturing
- Garnetting machinery for textiles manufacturing
- Gas liquefying machinery manufacturing
- Gem stone processing machinery manufacturing
- Glass making machinery (e.g., blowing, forming, molding) manufacturing
- Granulator and pelletizer machinery for plastics manufacturing
- Hosiery machines manufacturing
- Injection molding machinery for plastics manufacturing
- Jacquard card cutting machinery manufacturing
- Kilns (i.e., cement, chemical, wood) manufacturing
- Knitting machinery manufacturing
- Knot tying machinery for textiles manufacturing
- Lace and net making machinery manufacturing
- Leather working machinery manufacturing
- Light bulb and tube (i.e., electric lamp) machinery manufacturing
- Loom bobbins manufacturing
- Loom reeds manufacturing
- Looms for textiles manufacturing
- Loopers for textiles manufacturing
- Mercerizing machinery manufacturing
- Metal casting machinery and equipment manufacturing
- Napping machinery for textiles manufacturing
- Needles for knitting machinery manufacturing
- Net and lace making machinery manufacturing
- Optical lens making and grinding machinery manufacturing
- Petroleum refining machinery manufacturing
- Picker machinery for textiles manufacturing
- Picker sticks for looms manufacturing
- Plastics working machinery manufacturing
- Printer machinery, 3D, manufacturing
- Printing machinery for textiles manufacturing
- Rectifying equipment, chemical, manufacturing
- Roving machinery for textiles manufacturing
- Rubber working machinery manufacturing
- Schiffli machinery manufacturing
- Sewing machines (including household-type) manufacturing
- Shoe making and repairing machinery manufacturing
- Shuttles for textile weaving machinery manufacturing
- Sieves and screening equipment, chemical preparation-type, manufacturing
- Silk screens for textile fabrics manufacturing
- Spindles for textile machinery manufacturing
- Spinning machinery for textiles manufacturing
- Spools for textile machinery manufacturing
- Stone working machinery manufacturing
- Tannery machinery manufacturing
- Textile finishing machinery (e.g., bleaching, dyeing, mercerizing, printing) manufacturing
- Textile making machinery manufacturing
- Textile printing machinery manufacturing
- Texturizing machinery for textiles manufacturing
- Thermoforming machinery for plastics manufacturing
- Thread making machinery manufacturing
- Through-hole machinery, printed circuit board loading, manufacturing
- Tile making machinery (except kilns) manufacturing
- Tire making machinery manufacturing
- Tire recapping machinery manufacturing
- Tire shredding machinery manufacturing
- Tobacco processing machinery (except farm-type) manufacturing
- Tufting machinery for textiles manufacturing
- Vulcanizing machinery manufacturing
- Warping machinery manufacturing
- Weaving machinery manufacturing
- Winding machinery for textiles manufacturing
- Wire and cable insulating machinery manufacturing
- Wood drying kilns manufacturing
- Wool and worsted finishing machinery manufacturing
- Yarn texturizing machines manufacturing
- Zipper making machinery manufacturing
3D Printing Insurance - The Bottom Line
The insurance industry is now beginning to recognize the risks associated with the use of 3D printing technology. Like any new technology or process, the increased use of 3D printing will eventually lead to more claims that arise from issues mainly involving the printers and systems associated with it.
Insurance companies recognize this fact which is why many companies are now introducing 3D printing insurance.
The new policies (soon to be introduced) will cover the inclusions and limitations of traditional policies as they start to understand the risks better.
Companies that use 3D printing are expected to be vigilant, review their policies when purchasing new ones, and renew terms for their current policies. If your company does not have 3D printing insurance, it might soon become a necessity.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.