BP 08 04-Printers Errors And Omissions Liability

BP 08 04–PRINTERS ERRORS AND OMISSIONS LIABILITY

(September 2019)

INTRODUCTION

Printers have unique exposures due to the nature of their business. While it  is sometimes referred to or classified as a professional exposure  it is not a professional liability. The exposure  develops out of any possible error or omission that may occur while preparing and completing printing processes and services.

Printers errors and omissions liability coverage is an important part of the insurance protection that printing operations need. BP 08 04–Printers Errors and Omissions Liability was developed to provide this important insurance protection for printing operations that meet the Businessowners Program eligibility criteria.

Note: This coverage applies to only printing errors and omissions. It does not apply to operations that involve writing or publishing.

BP 08 04–PRINTERS ERRORS AND OMISSIONS ANALYSIS

A. Coverage

This coverage provided by this endorsement is subject to the Business Liability provisions. The coverage provided by Business Liability is extended to apply to damages due to the insured's negligent acts, errors, and omissions in its providing of  printing services.

B. Legal Liability

This coverage is for  amounts the insured is legally liable for due to damage that results from any negligent act, error, or omission an its providing of printing services.

C. Exclusions

Section II–Liability B. Exclusions is changed in a number of ways.

1. Paragraph m. Damage to Your Work and only item (6) of paragraph k. Damage to Property do not apply to this coverage.

2. Six exclusions are added. The coverage this endorsement provides does not apply to any claim:

a. That results from criminal acts the insured or any person for whom it is responsible commits. This includes fraud but is not limited to just it.

 

Examples:

  • Piper Printing and other printers in the local area intentionally set excessively high rates for their services. Customers sue Piper after they discover the collusion. This incident is excluded.
  • Piper Printing guarantees a specific quality of paper and ink for a specific job. In order to cut costs, it uses lesser quality paper and ink but still represents these materials as the more expensive ones. Piper is sued but this incident also is excluded.

 

b. That results from infringing on copyright, trademark, trade name, or service mark by using them with goods, products, or services the insured sells, advertises, or offers for sale

Note: Infringing does not apply to titles or slogans.

 

Example: There is no coverage if Piper Printing uses the logo of a well-known, reputable printing franchise without its authorization in order to gain customers.

 

c. That involves reimbursement of costs of printing materials or printing materials

Note: While most other damages are covered, the insured's actual costs of printing and the materials it uses are not. The insured is responsible for funding these expenses from its own resources.

 

Example: Piper Printing prints a brochure for a resort that incorrectly advertises room rates at $50 per night instead of the correct rate of $250 per night. Fortunately, it discovers the mistake before it sends the brochures to the resort. Since a special job run is required, Piper calls in some employees who work for time and a half rates and also incurs other additional expenses to reprint the brochure. These costs are not covered. Coverage applies if Piper delivered the incorrect brochures and was sued by the customer but the costs of printing and materials are not.

 

d. That involves the insured's insolvency or bankruptcy

 

Example: Piper Printing files for bankruptcy. This results in a number of jobs not being finished. Coverage does not apply to the suits filed against Piper for the jobs it did not finish.

 

e. That involves the insured's publishing activities

Note: Coverage applies when the insured prints to the specifications of others. It does not apply to damages that result when it develops, designs, writes, or commissions the actual copy or text used.

f. That result from writing material for the insured's customers.

Note: Writing is considered part of publishing and is excluded.

D. Limits of Insurance

This section amends the liability and medical expenses limits of insurance to include printing acts, errors, and omissions.

E. Clarification of Limits

Any act, error, or omission combined with all related acts, errors, or omissions in providing these services is treated as a single act, error, or omission when determining this endorsement's limits of insurance.