The billboard was huge, expensive, and… orange. It was supposed to be the client’s signature “Crimson Red.” The client demanded I pay the $40,000 cost to reprint and rehang the vinyl. I checked my files: I had left the file in RGB instead of converting to CMYK. It was a rookie mistake, and I was absolutely at fault.
Key Takeaways
- Admitting fault works (sometimes): Unlike a lawsuit, if the error is clear, some insurers prefer to just pay the “Rectification Cost” quickly to close the file.
- The Deductible stings: You will pay your deductible (e.g., $1,000 or $2,500) before the insurance pays the rest.
- “Printers Errors” vs. “Design Errors”: Insurers will investigate if the printer had a duty to check the proof. If the printer failed to flag the RGB file, the liability might be split.
- Sub-limits apply: Check if your policy has a lower limit for “Correction of Work” compared to legal defense.
The “Why”: Rectification Coverage (Again)
We touched on this with the “Typo” article, but color matching is the quintessential “Rectification” claim.
The Trap: If you don’t have rectification coverage, the carrier will say, “We will defend you if they sue, but we won’t write a check for the billboard.”
Since you know you are wrong, you don’t want a defense; you want a check. You need a policy that allows for “Voluntary Settlement” with the carrier’s consent.
The Investigation: I Quoted 3 Major Carriers
1. Travelers (Print Specialist)
- The Analysis: They understand color spaces. Their adjusters know the difference between RGB and CMYK. They are more likely to cover this under “Printers E&O” if you are involved in the production management.
2. Progressive Commercial (E-&O)
- The Analysis: Their standard professional liability is decent, but they are strict on “Quality Control.” If you didn’t order a physical proof, they might argue you were “grossly negligent,” which can jeopardize the claim.
3. CNA
- The Analysis: Very strong on “Media Liability.” They often include coverage for “damages to tangible property” resulting from a design error, which is exactly what a ruined billboard is.
[IMAGE: Screenshot of a file metadata viewer showing RGB vs CMYK color profiles]
Comparison Table: Production Errors
| Carrier | Rectification Coverage? | “Gross Negligence” threshold | Best For… |
| Travelers | High | Moderate | Print heavy work |
| Progressive | Low | Strict | Digital only |
| CNA | High | Moderate | Large Agencies |
Step-by-Step Action Plan
- Stop the Presses: If any other ads are printing, halt them immediately.
- Call the Agent, Not the Client: Tell your agent, “I made a technical error resulting in financial loss.” Ask if you have “Rectification” or “Mitigation” coverage.
- Get the Reprint Quote: Get a firm number on the fix.
- Settle (with Permission): If the carrier agrees, they will cut a check to the billboard company (minus your deductible). Do not pay it yourself and ask for reimbursement later—that is usually denied.
FAQ
Why does insurance cover my incompetence?
That’s literally what E&O is for. “Errors and Omissions.” Everyone makes mistakes.
Will my rates skyrocket?
Likely yes. A $40,000 payout might raise your premiums by 20-40% for the next 3 years. It’s still cheaper than paying $40k cash.
What if the printer didn’t send a proof?
Then the printer shares liability. Your insurance company will go after the printer’s insurance to split the bill.