If you are trying to buy the right kind of business insurance, it can be a challenge to find someone who understands label companies and how to advocate for them.

A misinformed insurance broker can steer you to the wrong insurance products or leave gaps where you are exposed. Even worse, a licensed business broker who is inexperienced in the label industry won’t be able to advocate for you during the claims process.

That’s why, when I sit down with print business owners before they sell their companies, insurance is one of the areas we review. I want to be sure owners are not only protecting their company but also sending the right message to prospective buyers.

If your business is in order – finances, vendor relationships, safety, etc. – it sends the signal that you are strategic, prepared, forward thinking and stable. A chaotic business, on the other hand, makes buyers more likely to discount their offer…or simply pass altogether.

One thing that can undermine a positive perception is when the insurance coverage is not strategic. By that I mean that the insurance coverage hasn’t addressed big picture contingencies, as well as the specific and current needs of that particular sector and business.

The insurance company you choose to advise you is crucial. Your insurance expert is a key member of your team of outside advisors.

Don’t assume your broker understands your business
While it can be comforting to work with your personal insurance broker for your business needs, you would be wise to contact industry associations for your specific sector. If the association doesn’t sell insurance directly, they probably work with brokers or agents who have a general understanding of the industry niche and are willing to have the association educate them on a case-by-case basis.

This is crucial for two reasons:
First, when you are purchasing critical insurance for your company, you want to be sure you are buying all the categories of insurance that you need. An insurance salesperson who doesn’t understand your business could leave gaping holes of liability.

Second, when you need to make a claim, or if someone makes a claim against you, you need someone advocating for you who knows what they’re talking about.

What coverage do you need?
I spoke with Joanne Cadenas of Printing Industries Association, Inc. of Southern California (PIASC). PIASC is the trade association for the graphic arts community in Southern California, as well as Clark County in Nevada. It is the largest graphic arts trade association in the country, serving the interests of more than 1,200 member companies. It has an extensive insurance program and also helps printers with claims when the time comes. Cadenas is the operations manager at PIASC Insurance Services.

An area that often gets overlooked, says Cadenas, is liability related to the data of your customer, as well as your own data and technology. A data breach could cause financial harm or embarrassment to your customer. A cyber attack could bring your company to its knees for days or weeks and affect the security of sensitive information.

Today’s printing companies need to look at all the ways new technology is changing our businesses. Because associations such as PIASC are regularly in contact with members and track developments in technology, they hear about new types of claims, such as the crippling effects of a cyber attack.

Cadenas says it’s common for printers to ask about insurance products after they’ve heard disaster stories from their colleagues. What ends up happening, though, is printers cobble together their business insurance coverage like Frankenstein’s monster.

They may have coverage from a variety of providers, many of whom do not specialize in the printing industry. Or, a broker is happy to sell the individual policy but doesn’t do a complete and customized evaluation to see where the gaps are.

Look at the big picture
“Whether printers buy their coverage through us or not,” says Cadenas, “we recommend they have a review. Today’s business owner just can’t envision all the areas of insurance that are available or may be pertinent.”

Some of the insurance programs available through PIASC include:
• Medical, Dental, Life Insurance, Disability
• Property Insurance
• General Liability Insurance
• Commercial Auto Insurance
• Commercial Umbrella Insurance
• Mechanical Breakdown Coverage Insurance
• Errors and Omissions Insurance
• Cost to Correct Insurance
• Employment Practices Liability Insurance
• Directors and Officers Liability Insurance
• Fiduciary Liability Insurance
• Cyber Liability Insurance
• Earthquake Insurance
• Crime Insurance (Employee Dishonesty, Mysterious Disappearance, Theft)
• Industry-specific Workers’ Compensation Insurance

Another benefit of working with an association, says Cadenas, is that the association speaks the insurer’s language: “We know how to manage the claim. We know what is being asked and why. We know how to correct misconceptions that might affect the claim, and we know how common it is that insurers just don’t understand printing or its associated sectors.”

Knowledge is power during the claims process
Cadenas says there are ways to find an agent who understands your business and can advocate for you:
• Ask for a referral from the agent who covers your home and auto policies.
• Ask a company that is similar to yours who they use.
• Check with the state board that regulates insurance companies.
• Ask other vendors who work closely with insurance providers such as your paper company.

“Put as much time into buying insurance as you would picking out a new car,” says Cadenas. “Yes, it’s that important.”

When you do find a company that seems like a good fit, be sure to check for complaints, look them up online and see what people have said, review their record for paying claims and try to talk to someone who has filed a claim with them.

Cadenas also recommends calling the insurance company’s customer service number to see how long it takes to talk to a real person. “Not to toot our own horn,” says Cadenas, “but we can help you cut right through that hassle. We work with insurance companies day in and day out, and we know how to get to the person who can make your claim flow more efficiently.”

Pinching pennies can come back to bite you
Owners tend to think first of insuring buildings or equipment or jobs in process. However, your biggest asset is your workforce. Insurance must cover your workers.

Pinching pennies at the jeopardy of workplace safety is a false economy. Furthermore, when it comes time to sell your company, how you protect your workers is a direct reflection of how the company is managed and how workers are treated.

Second, sometimes owners don’t want to have an insurance review that involves a walk-through because they think they are opening a can of worms, Cadenas observes. “Owners are under the impression that their rates will go up or they will be reported for safety violations if they invite insurance professionals into their facilities,” she says.

Instead, according to Cadenas, it’s more likely that the coverage will shift a bit but not necessarily be an increase. “New equipment and vehicles are generally safer than old. New buildings have sprinkler systems and other fire protection. Unless you are willfully putting workers in harm’s way, we would prefer to educate you and give you the resources to empower you.”

Be professional about your insurance decisions
What it really boils down to, says Cadenas, is protecting your business. Prospective buyers want to know that the business is protected right up to the point of hand-off and that there will be no unpleasant surprises. Buyers make a judgment about you based on these choices.

“If you think a buyer is not checking these things out,” says Cadenas, “you’d be wrong. Buyers have so much information at their fingertips. If all they can envision is disaster and inconvenience when they look at your business coverage, you’re scaring them away before you ever get to the negotiating table.” 

Getting expert advice
Buying commercial insurance may seem like an overwhelming process with too many choices and so much riding on those decisions. It’s not unusual for owners to delegate the process of evaluating insurance to the CFO, operations manager or human resources manager.

Printing Industries of America (PIA), the parent organization of PIASC, has an industry sub-group for finance and administration professionals called PIFE that provides members with ongoing information and peer support on issues relating to operations. Peer groups such as these can be helpful in acquiring insurance and in dealing with claims.

Whether your trusted adviser is a consultant, an employee, an expert in your trade association or a licensed business broker, Cadenas recommends that you ask, “Is there anything else I should know? Am I adequately covered in all situations?”

Finally, keep in mind that when you sell your business, you want the new owners to be successful. You want them to protect the business you have nurtured and the workers you are so fond of. It’s likely they will stick with your insurance providers, at least in the beginning. Make sure they have a good start by choosing vendors and business partners who are the right fit and who understand the specifics of your printing business.



Rock LaManna, President and CEO of LaManna Alliance, helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. Rock can be reached by email at [email protected].