Checkbook printers are a type of commercial printer. They engage in printing checkbooks for individuals or businesses. Checkbook printing is often offered online for easy ordering.
If you operate a checkbook printing business, you need to make sure you understand your business risks, so you can protect yourself and recover financially if you have a loss.
Checkbook printer insurance can help you protect all aspects of your business, including your customers, your employees, and your property and equipment.
Why Do You Need Checkbook Printer Insurance?
Checkbook printers face a variety of typical commercial printing risks, such as:
- Customer or visitor injuries
- Employee injuries
- Fire, smoke, weather, and water damage
- Equipment malfunctions or damage
Checkbook printer insurance can help in these situations and many others. It helps you cover the costs of property and liability claims, so you can recover and stay in business.
Special Concerns for Checkbook Printers
In addition to printing error-free checks on time and as promised, checkbook printers have numerous security concerns that other types of commercial printers do not have.
Personal and commercial checks contain the customer’s sensitive banking information. Checkbooks are expected to be printed with certain security features included in order to minimize the risk of fraud and theft for the customer.
To combat the potential for check fraud, many checkbook printers build security features into their checks. This goes a long way toward ensuring the security of your customers' banking information—and making sure that you won't be sued for causing financial harm to your customers.
Some of these security features include:
- Micro-printed words: words printed on the check that look like simple lines to the naked eye, but that most printers and copiers can’t effectively duplicate, preventing easy counterfeiting.
- Reactive paper or ink: special ink that changes appearance when exposed to chemicals to reveal attempts at check washing.
- Heat reactive markings: markings on the check that fade when you touch them and then reappear seconds later, making them difficult for forgers to duplicate.
- Ultraviolet reactive paper: special security paper that allows bank personnel to check a check’s authenticity based on how it reacts to a black light.
- Difficult-to-copy holographic seals: special seals or holographs that cannot be forged or duplicated with typical methods.
- Intricately printed designs: special designs on on the backs of checks that cannot be reproduced by most printers and copiers.
Checks that do not contain required security features can be rejected by banks and can lead to inconvenience (at best) and security breaches and serious financial losses (at worst) for your customers.
Checks also can be rejected if the account number, routing number, and other information on the check don’t match up with the bank’s information. Making sure all of the information is correct by sharing a proof or communicating with the customer is the best way to avoid these kinds of mistakes. After all, it’s more than the cost of reprinting that’s at stake. If you don’t take proper precautions to ensure the security of the checkbooks that you print, your customers’ bank accounts are at risk for counterfeit, unauthorized access, and theft.
What Does Liability Insurance Cover for Checkbook Printers?
Commercial general liability (CGL) insurance is necessary for times when your business is negligent and causes bodily injury or property damage to a third party. This would include cases in which some defect in your product (such as failure to include appropriate security protections) causes harm to your customers. Your CGL policy protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy.
You’ll need several other liability insurance policies, as well:
- Cyber liability insurance: A virus, hacker, or glitch in your computer system can wreak havoc on your checkbook printing business. Since checkbook printers do much of their business online, and you are printing documents with highly sensitive information, cyber liability insurance is one of the most important insurance policies you can buy. When clients, employees, vendors, or others have their sensitive data compromised, you’re responsible for paying for many of the damages, and you may also be sued. Cyber liability insurance protects you from the risks associated with cyberattacks, data breaches, viruses, and other cyber-related issues.
- Environmental liability insurance: The inks and solvents that you use in the printing process could be toxic and may contaminate the air, ground, or water if they are not handled properly. Environmental liability insurance covers a variety of pollution exposures.
- Commercial umbrella insurance: Provides an extra layer of liability protection to any of several other policies you might have. Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.
What Does Property Insurance Cover for Checkbook Printers?
Checkbook printers need to understand their risk for property losses. You have numerous flammable materials on hand (papers, inks, and other chemicals), as well valuable inventory, equipment, machinery, and more. Your buildings, equipment, and inventory are susceptible to fire, theft, vandalism, and natural disasters. How would you recover if you faced a partial or total loss?
- Commercial property insurance protects your building and other property (printing presses, machines, equipment, office space, computers, furniture, etc.) in the event of a covered loss, such as fire, vandalism, smoke, or theft.
- Business interruption coverage, or business income coverage, protects your earnings and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered disruption (fire, hail, wind, equipment breakdown). You can even include coverage for breakdowns in utility services (water, electrical) if a storm or some other event takes down power lines and cuts off your electrical and telephone service, and you’re forced to temporarily close your doors.
- Equipment breakdown insurance, often referred to as boiler and machinery coverage, supplements your business property insurance. It covers certain costs associated with accidental breakdowns of machinery or equipment and the resulting property damage or loss. Equipment breakdown coverage may pay for the cost of repairing the damaged equipment, the costs associated with the time and labor to repair or replace the equipment, business income losses when a covered breakdown causes a business interruption, and the cost to replace spoiled stock or materials.
How to Avoid Gaps in Your Checkbook Printer Insurance Coverage
In addition to property and liability insurance, checkbook printers are likely to need several other business insurance policies to reduce any gaps in coverage. Here’s a rundown of what to discuss with your independent insurance agent:
- Worker's compensation insurance provides insurance coverage when accidents happen in the workplace. It ensures that the injured worker gets medical care and income protection while unable to work. Worker's compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if the worker is killed.
- Computers and media coverage helps you pay to replace lost data and related lost income if your computers are damaged by a covered loss, such as theft, vandalism, viruses, or malware. It may also pay for physical damage to computers or hardware.
How Much Does Checkbook Printer Insurance Cost?
In general, checkbook printer insurance costs will vary depending on:
- The size of your business
- The number of employees you have
- The amount and value of your commercial property, including buildings, equipment, and inventory/materials
- The location of your business
A variety of other variables will come into play, as well, especially the type of coverage you need and the deductibles that you choose. An independent insurance agent can guide you though your options so you get coverage that meets your needs and budget.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right checkbook printer insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2020, Consumer Agent Portal, LLC. All rights reserved.