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 broom and brush manufacturing insurance questions:
- How Much Does 3D Printing Insurance Cost?
- Why Do 3D Printers Need Insurance?
- What Type Of Insurance Do 3D Printers Need?
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?
A genuine concern is that there is no significant regulation that helps mitigate risks. Neither standard commercial nor personal liability policies have introduced language that addresses 3D printing risks. Of course, that won't stop litigation when 3D printing losses occur.
Problems will soon arise for various reasons. Liability policies address losses according to identifying and protecting parties responsible for certain losses. 3D printing losses may often be confusing regarding assigning blame. This is why 3D printing insurance is so important.
Imagine a person is hurt while using a product that was repaired with a 3D printed replacement part. The small businessperson who supplied the part used downloaded printing instructions provided by a website that copied the design of the original part manufacturer.
Which party is responsible for the loss? In this case, even the printer maker could be at fault. The fact is more risks of loss involving 3D printing are created each day.
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?
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.
Product Liability Coverage
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.
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.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
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.