diff --git a/frappe/printing/doctype/letter_head/letter_head.py b/frappe/printing/doctype/letter_head/letter_head.py
index 7ed8d86756..c2c193a1a8 100644
--- a/frappe/printing/doctype/letter_head/letter_head.py
+++ b/frappe/printing/doctype/letter_head/letter_head.py
@@ -37,7 +37,7 @@ class LetterHead(Document):
 
 	def before_insert(self):
 		# for better UX, let user set from attachment
-		if not frappe.flags.in_migrate:
+		if not frappe.flags.in_migrate and not frappe.flags.in_install:
 			self.source = "Image"
 
 	def validate(self):
@@ -48,7 +48,12 @@ class LetterHead(Document):
 		if self.disabled and self.is_default:
 			frappe.throw(_("Letter Head cannot be both disabled and default"))
 
-		if not self.is_default and not self.disabled and not frappe.flags.in_migrate:
+		if (
+			not self.is_default
+			and not self.disabled
+			and not frappe.flags.in_migrate
+			and not frappe.flags.in_install
+		):
 			if not frappe.db.exists("Letter Head", dict(is_default=1)):
 				self.is_default = 1