E&S Technical Information

E&S Technical Information

Commercial Printing

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Commercial Printing

Report Number: / BL-40-04
Release Date: / January 1, 2004
Section Title: / Manufacturing

NAICS 323110

SIC 2752

ISO 58408

NCCI 4299

Exposure Abstract

Lines of Insurance / Areas of Concern / Risk* / Section
Commercial Automobile / Delivery of products; incidental vehicle use; vehicle theft and vandalism / L / CA Assmt / CA Controls
Liability / Accidents during pick-ups and deliveries; fire; structural integrity; attractive nuisance; hazardous chemicals; water pollution; waste disposal / L / LB Assmt / LB Controls
Property - Crime / Employee dishonesty; burglary; vandalism / L / CP Assmt / CP Controls
Property - Fire / Storage and use of ink, paper, and flammable liquids; dust collection systems; rolled paper storage; gravure press equipment / H / FP Assmt / FP Controls
Property - Inland Marine / Business Interruption / Business interruption; damage to or loss of equipment, goods in transit, accounts receivables; bailment / L / IM Assmt / IM Controls
Workers’ Compensation / Hazardous substances; powered industrial trucks; machine hazards / L / WC Assmt / WC Controls
*Risk: L-Low, M-Moderate, H-High

Description of Operations

Businesses in the commercial printing industry print newspaper inserts, catalogs, pamphlets, and advertisements. This industry segment accounts for almost three-quarters of the overall U.S. printing industry. The next largest industry segment is the quick printing industry, which provides short-run printing and photocopying services.

Commercial printers are classified based upon the type of printing method that they use. There are five basic printing methods: lithography, letterpress, flexography, gravure, and screen printing. All these methods use plates, or some other form of image carrier, and presses to perform the image transfer. Offset lithography, which transfers an inked impression from a rubber-covered cylinder to paper or other material, is the dominant printing process. Plateless or non-impact processing, such as electronic, electrostatic, or inkjet printing, is not typically used by commercial printers - copy services and specialty or quick printers use these methods.

All printing involves three basic stages: pre-press operations, pressing, and postpress or finishing. Pre-press operations include all operations for preparing the material for printing - this can include composing text, designing the page layout, setting type, photographing text and pictures, stripping film, and making printing plates. Pressing is when the actual printing is performed. During this stage, press operators install and adjust the printing plate, adjust pressure, ink the press, load the paper, and adjust the press to the paper size. Finishing operations include folding, binding, and trimming printed sheets into a final form.

Technology is rapidly changing the nature of many of the traditional pre-press and press operations, for example, the use of molten lead to create individual letter, paragraphs, and full pages of text is nearly extinct. Instead, most printers use photo typesetting. Other changes are the use of sophisticated electronic publishing programs to prepare page layouts, scanners to perform image separations, lasers to directly convert electronic data to press plates without the use of films, and electronic controls to monitor and adjust presses remotely.

Most commercial printing operations employ less than ten people. Employees will include specially trained press operators and other skilled production workers, office and administrative support personnel, and laborers. Printers may also have professional staff, such as editors or graphic designers. Some small printers may contract out parts of their services, such as photoengraving or product delivery.

A typical printing operation will have a production area where most of the printing operations are done, a stock room, a finished product storage area, and administrative offices. Pre-press operations, such as image scanning, may be performed in separate rooms from pressing operations. Print shops that do traditional platemaking will have darkrooms. Printers may operate one, two, or three shifts depending upon workload.

Printing presses range from small, sheet-fed presses that print one or two colors at a time to the large “web” presses that are roll-fed. Finishing equipment may include cutters, shears, collators, binding equipment, and shrink-wrapping equipment. Printers will use hand trucks, pallet jackets, and powered industrial trucks to move paper stock and other materials. Larger operations may receive supplies by railcar.

Printing inks may be water-, soy-, or petroleum-based. Curing may be done using ultraviolet light. Solvents may be used to thin inks and to clean equipment and production areas. Adhesives may be used in bindery operations.

[Exposure Abstract]

E&S Technical Information

Commercial Printing

Commercial Automobile Exposure Assessment

[Commercial Automobile Exposure Controls]

The commercial vehicle exposure in commercial printing risks can be significant depending on the size of the operation. The following areas need to be reviewed to provide a comprehensive exposure assessment:

Operations

Is there a written safety policy that includes a directive on the safe operation of vehicles?

Is a policy in place requiring that all occupants be secured in a seat belt when the vehicle is in motion?

Is there a written policy addressing the consumption of alcohol and illegal substances by all drivers?

If State lines are crossed during normal operations, is the business aware of the responsibilities they may be required to meet under the Federal Motor Carrier Safety Regulations?

Where local delivery is provided, are customers promised delivery within a specific time? If so, are drivers clearly instructed that safe driving takes precedence over meeting delivery schedules?

Do employees use their personal vehicles for business purposes?

Are employees allowed to use company-owned vehicles for personal use? If so, are limitations in place as to who may drive the vehicle and the radius of operation?

During non-business hours, are vehicles kept in a secure location with adequate key control?

Driver Qualification

Are drivers properly licensed for the type(s) of vehicle they will operate?

Is the operation of vehicles restricted to qualified drivers?

Is a driver’s State Motor Vehicle Record obtained when first hired, and periodically updated and reviewed?

Where driving will be part of an applicant's responsibilities, do reference checks include information on driving?

Are drivers physically qualified to meet job requirements, in addition to driving?

Driver Training

Are drivers provided the necessary training to drive and work safely?

Are drivers instructed in proper vehicle loading and delivery techniques?

Are drivers trained, as necessary, in compliance with the U. S. Department of Transportation’s Federal Motor Carrier Safety Regulations?

Are drivers instructed on how, as well as provided with the equipment, to properly secure items in vehicles?

Are drivers instructed to only use communications devices (e.g., cellular phones) when their vehicle is stopped?

Are drivers instructed to lock vehicles, and activate the alarm system, if provided, when vehicles are unattended?

Are records of driver training documented in the driver’s qualification file?

Driver Supervision

Are drivers’ work schedules adjusted to limit fatigue and provide for the safe operation of vehicles?

Is vehicle routing planned to avoid problem areas, such as roads with restricted weights?

Vehicle Maintenance and Inspection

Are company vehicles properly maintained and are maintenance records kept?

Are drivers required to inspect vehicles before operation?

Accident Reporting, Recording and Analysis

Are drivers trained on what to do at the scene of an accident?

Does management record and analyze each accident to help prevent future occurrences?

[Exposure Abstract]

E&S Technical Information

Commercial Printing

Liability Exposure Assessment

[Liability Exposure Controls]

The following questions highlight areas that should be addressed when evaluating a commercial printer for premises and environmental liability concerns.

Premises Safety

Is the premises secured from unauthorized access?

Are floors and walking surfaces maintained in good repair?

Is flooring under presses and other heavy equipment suitably reinforced?

Are parking areas provided with pavement markings and traffic control devices to regulate the movement of vehicles?

Are printing and storage areas separated from visitor areas, office areas, and other less-hazardous areas?

Are there designated visitor areas and are they regularly maintained and inspected for accident hazards (e.g., spilled liquids, broken furniture, clutter on floors, or burned-out light bulbs)?

Are printing areas restricted to people wearing appropriate personal protective equipment (PPE)?

Are all visitors escorted while in restricted areas?

Are fire exits clearly marked?

Are loading areas kept clean and uncluttered?

Are material deliveries supervised?

Are flammable solvents and other chemicals stored safely?

Does the printer have procedures for controlling liability exposures associated with the use of independent contractors?

Do printers with rail spurs have written agreements describing who is responsible for maintaining the sidetrack?

Environmental

Does the printer take steps to reduce emissions of volatile organic chemicals (VOC)?

Are spill basins, splash guards, and dikes used to control chemical accidents and spills?

Are chemical containers sealed when not in use?

Are all waste water discharges monitored and recorded?

Does the printer routinely inspect and maintain printing equipment?

Does the printer have procedures for managing contaminated wipes and shop towels?

Are printing operations sequenced to reduce process waste?

Does the printer segregate waste materials to increase their recycleability?

Does the printer recover oils, solvents, and other cleaning materials?

Does the printer reclaim metals from rinse water?

[Exposure Abstract]

E&S Technical Information

Commercial Printing

Property - Crime Exposure Assessment

[Property - Crime Exposure Controls]

The following factors should be considered in assessing a commercial printer for its vulnerability to property crimes:

Employee Theft

Are all job applicants, especially those with financial responsibilities, screened prior to employment?

Are employees with financial responsibilities bonded?

Are there controls in the accounting, purchasing, and shipping/receiving departments to prevent theft or fraud?

Are there controls on computer operations to prevent theft and fraud?

Are there controls in warehouse/stockrooms to prevent theft?

Is a complete physical inventory taken at least yearly?

Can employees enter or leave the facility without being seen?

Are packages checked that are being carried out of the premises by employees?

Are there regular, unannounced inspections of employee areas, including lockers?

Are there controls on trash disposal? A common method of employee theft is to hide pilfered goods in trash for later retrieval.

Is there closed circuit television (CCTV) surveillance of stock rooms, loading docks, etc.?

Are security personnel trained in the procedures to follow in questioning or detaining an employee suspected of stealing?

Can employees who are caught stealing be successfully prosecuted?

Burglary

Is the facility located in an isolated, remote area or high-crime area? The local police should be able to provide statistics on property crime and, in particular, burglary for the area.

What are the hours of operation of the business?

Does the business operate late at night?

Is the perimeter of the property protected by a fence?

Is the fence line, yard areas, and building entrances provided with adequate lighting?

Would it be easy for a burglar to gain entry into buildings? Opening in buildings that should be considered include windows, doors (including loading dock doors), and other openings, such as roof hatches.

If burglars were to successfully enter the premises, would it be easy for them to get goods out?

If there is a retail operation, are there strict limits on the amount of cash kept in cash registers?

Vandalism

Are there signs of vandalism on the property?

Are there security patrols of the property?

[Exposure Abstract]

E&S Technical Information

Commercial Printing

Property - Fire Exposure Assessment

[Property - Fire Exposure Controls]

While the scope of operations of the commercial printing facility will determine the degree of exposure, all printers share similar hazards - the storage and use of ink, paper, and flammable liquids that contribute to a high fuel loading. In reviewing losses related to printing operations, the majority of fire occurs in the pressroom, while the largest losses are related to dust explosions. Operations with dust collection systems, rolled paper storage, and gravure press equipment, face a higher exposure rate than small sheet-feed press facilities.

Facility Design and Construction

Is the facility in compliance with local building and fire prevention codes? What is the date of the last inspection of the facility by the local fire department? Have any renovations and/or alterations been made since the inspection?

Are there fire exposures from adjacent buildings or structures?

Are fire exits readily accessible?

Are concealed spaces in attics properly fire stopped, or otherwise protected?

Are boiler rooms, storage rooms, pressrooms, bindery operations, and flammable liquid storage separated from each other by firewalls or fire barriers?

Is the travel distance to a fire exit or a separate smoke compartment not more than 100 ft (60.9 m) from any location within the building?

Utilities

Are electrical systems where fuels, lubricants, and inks are stored or dispensed approved/listed for Class I, Division 1 locations?

Is electrical equipment in dust collection areas approved/listed for Class I, Division 2 use?

Does the electrical system appear to be in good working condition?

Is the electrical system adequate to handle the expected loads?

Is electrical equipment used in wet areas, such as restrooms designed to provide ground fault protection?

Is gas- and oil-fired equipment maintained following the manufacturers’ recommendations?

Storage Areas

Are accumulations of combustible materials, such as wood pallets and scrap paper, properly stored in an area separated by firewalls or barriers from the production areas?

Are flammable liquids properly stored in listed/approved cabinets or in areas separated by firewalls or barriers from the production areas?

Are control measures in place to prevent spillage?

Is a space of at least 12 in (30.4 cm) provided between roll paper storage and walls?

Fire Suppression and Alarm Systems

Is the building protected by an alarm system that provides both manual and automatic initiation devices?

Does the building have a sprinkler system that is installed and maintained in conformance with NFPA 13, Standard for Installation of Sprinkler Systems, published by the National Fire Protection Association (NFPA)?

Are dust collection systems equipped with spark detection?

Are smoke detection and fire alarm systems provided?

Are there a sufficient number of listed/approved portable fire extinguishers, and are they properly located?

Are special hazards, such as lithograph (offset) and gravure printing, provided with supplemental suppression systems, such as carbon dioxide extinguishing systems?

Are fire suppression and alarm systems covered by maintenance and service contracts?

Operations

Is smoking allowed on the premises? If yes, is it restricted to certain areas?

Is a hot-work permit system used for all cutting, welding, and soldering operations?

Are equipment-cleaning operations using flammable or combustible liquids conducted in well-ventilated areas, away from open flames and other ignition sources?

To control heat buildup from friction, are the cutting edges of all saw blades maintained in a highly sharpened condition?

Are paper and scrap hogs (i.e., chippers or shredders) equipped with metal detectors?

Are dust collection systems provided in areas where paper is cut or trimmed?

Are dust collectors located separately from the main processing area, either by an explosion rated wall or in a detached building?

Are emergency shutoffs provided for all sources of fuel and electric power to machinery? Are they clearly identified?

Is all machinery properly grounded/bonded to prevent accumulations of static electricity?

Does material handling equipment appear to be in good working order?

Are listed/approved materials handling equipment used in hazardous locations?

Is there a regular, preventive maintenance program for all equipment and machinery that includes cleaning and servicing of critical components?

Are Gravure printing presses used? If, so have static control measures implemented?

Are hard cover books manufactured? If, so have procedures been implemented to control fabric dust and static?

Are flammable glues used in binding operations? Is the area used for binding operations properly protected?

Emergency Preparedness

Is there an emergency action plan for the facility?

Are emergency evacuation drills conducted on a semi-annual basis?

Do employees check the exit doors and exit paths on a daily basis to ensure access during an emergency?

Incendiarism and Arson

Does a fence protect the perimeter of the property?

Are all exterior areas of the property illuminated?

Are exterior doors and windows secured from un-authorized access?

[Exposure Abstract]

E&S Technical Information

Commercial Printing

Property - Inland Marine Exposure Assessment

[Property - Inland Marine Exposure Controls]

The following areas should be reviewed in order to assess the inland marine exposures of commercial printers:

Electronic Data Processing (EDP) Equipment and Media

What are the ages, numbers of, and condition of all types of specialized computers?

Is there any custom-developed software in use?

Are backup files for such systems kept in the appropriate record protection equipment, or at an off-site location, and backed up on a regular basis?