Lessons learned - print shop
Loss prevention is crucial for print shop equipment, as any breakdown or damage to the machines can become a significant burden – both financially and operationally. A print shop recently experienced a loss to one of their most critical machines due to operator error, which resulted in physical property damage, extra expenses, and loss of business income. Learn more about this loss below and how it could have been prevented.
A foil press at a print shop was an important piece of equipment to an insured as it was used to apply foil to paper products. The loss occurred when a clamp fell into the press causing internal damage. After further investigation, it was determined that the damage was a result of misaligned components and inadequate tightening of the clamp, caused by operator error. The machine immediately broke down, causing a significant loss of income for the shop. Necessary repairs to the damaged press took almost four months to complete, partly due to the shipment and arrival of the replacement parts. During this time, the insured sustained a significant loss of income and incurred extra expenses.
While coverage was afforded for this loss event, the goal should always be to prevent these incidents from occurring in the first place. Proper training for printer operators in the programming and operation of this critical equipment are integral. By implementing loss prevention measures, print shops can ensure they are prepared and protected, and their equipment can operate at peak efficiency without delays or disruptions. Not only could there be a financial impact for the insured for these losses but also an impact on their brand by not being able to fulfill work orders for their customers. In addition, there could be missed opportunities for business growth and future customers.
Extending beyond just training, policyholders may consider implementations of proper safety procedures and precautions to not only prevent equipment breakdown losses but to limit property peril exposures. This can include proper testing and maintenance of equipment, having an organized and clutter free workspace, and easy access to fire extinguishing equipment. For loss prevention resources, contact your reinsurance territory manager or log in to FM Boiler Re Online.
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