Box Manufacturers Insurance

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Box Manufacturers Insurance Policy Information

Box Manufacturers Insurance

Box Manufacturers Insurance. Eight in every 10 products sold on the North American and European markets are packaged in cardboard boxes - and once you consider the fact that these boxes are additionally used for personal and commercial transportation purposes, it is no surprise that the box manufacturing industry is one of the top paper converters in the world.

Box and paperboard manufacturers produce various types of packaging and disposable containers. They receive large rolls called parent rolls from pulp and paper mills. These rolls are cut, folded, printed, glued, or stapled into products that must be assembled and glued at the customer's plant or ready-to-use boxes.

Product types include cartons, tubes, and corrugated boxes which are made of layers of corrugated paperboard glued together with a flat side (or sides) on top, bottom, or both.

The manufacture of cardboard, or paperboard as it is also called, boxes, may at first glance seem simple. It is not. To make the pulp that forms the foundation of a box from wood chips, chemicals such as sulphate and sulphite are employed. Rolls of paper can then be produced.

The flute, the waved middle layer seen in cardboard that makes it so strong, is made using corrugated roller machines. Cutting, trimming, folding, and adhesion are the next stages in the manufacturing process.

Manufacturers of cardboard or paperboard boxes play an indispensable role in the global supply chain, but they also face countless hazards, including those that cannot be planned for even by the most competent managers.

Thankfully, the right box manufacturers insurance package offers a buffer against the devastating financial losses that unforeseen circumstances would otherwise have. Read on to discover what kinds of insurance box manufacturers should be aware of.

Box manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked box manufacturing insurance questions:


How Much Does Box Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small box manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Box Manufacturers Need Insurance?

Insurance For Manufacturers

As a business owner, you will do everything in your power to ensure that your company runs smoothly; you will strive to manufacture your boxes safely, efficiently, and to meet your promised specifications.

The simple fact that not everything is in your power explains why you need to be properly insured - like other businesses, you face a multitude of risks. Some of those will be familiar to any manufacturer, while others apply more specifically to the box making industry.

Any company may suffer catastrophic damage due to a theft, vandalism, or an act of nature such as a wildfire or flood; circumstances you can try to mitigate with security systems, but can never completely prevent. Box manufacturing companies also face unique threats as a result of the raw materials and chemicals they work with during their production process, however, many of which are highly flammable.

Fire or water damage could decimate your inventory, and workers can sustain injuries during the production process, or exposure to the chemicals used to manufacture paperboard boxes could contribute to, or aggravate, a chronic health disorder. Should a crucial piece of equipment break down, the halt in production that follows can be costly, as well.

With the right types of box manufacturers insurance, companies in this industry are able to protect themselves from financial losses resulting from most of these scenarios.


What Type Of Insurance Do Box Manufacturers Need?

Your company's size, location, number of employees, production process, and storage solutions all influence what kind of insurance you should carry. Your specific insurance needs are as unique as your business, and that is why it is key to partner with a commercial insurance agent, ideally one who is deeply familiar with the needs of paperboard manufacturers.

Companies who make paperboard boxes will, however, need at least these three types of box manufacturers insurance:

  • Commercial Property: This type of insurance protects the building that houses your manufacturing facility as well as the assets therein. Theft, arson, and catastrophic water leaks are examples of unforeseen circumstances that can be covered by commercial property insurance, alongside acts of nature.
  • General Liability: Should a third party suffer bodily injury or property damage on your premises or as a direct result of your company's activities, they are likely to hold you liable. Commercial general liability insurance covers the legal and settlement costs that may follow.
  • Workers' Compensation: Despite the fact that workplace injuries are less common in the manufacture of cardboard boxes than in some other industries, accidents can happen. You could be held liable even if a worker slips or trips while at work. Workers comp insurance covers workers' medical costs and offers compensation for lost wages.


These types of box manufacturers insurance are just examples of the types of insurance that box manufacturing firms need. There are others you may want to consider. Product liability insurance, for instance, protects against financial loss in case of product recall, while any company that uses vehicles will also need auto insurance.

To make sure your needs are met properly, consult an agent who specializes in commercial insurance.

Box Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure at the plant is normally low as access by visitors is limited. If tours are given, visitors may be injured by slips, trips, or falls.

Rough lumber stored outside for pallet building can pose an attractive nuisance. These areas should be fenced to prevent unauthorized access, with proper lighting and warnings. Fumes, dust, and noise may be nuisance hazards to neighboring properties.

Products liability exposure is usually low. If products are used to package food products for human or pet consumption, the exposure increases due to the use of inks and adhesives that may contaminate contents. Quality control measures are important.

Environmental impairment exposure is moderate to high. Adhesives, glues, solvents and other hazardous chemicals used in processing could contaminate ground, air, or water. Storage and disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposure is high due to the potential for injury from burns, heat, cuts, puncture wounds, and amputations from box-cutting and slicing operations. Eye injuries are common, as are back injuries from lifting and material handling, slips, trips, and falls, hearing loss from machinery noise, and repetitive motion injuries.

Workers may be crushed by falling parent rolls. Guarding of machines is critical, as well as lockout/tagout procedures during machine maintenance and repair. Exposure to dust, dyes and adhesives can cause eye, skin and lung injuries from irritants.

There should be safety training and personal protection equipment. Drivers of forklifts and vehicles may be injured in accidents.

Property exposure consists of office, plant, and warehouse for storage of parent rolls and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and dust explosions. While tightly wound parent rolls are not highly combustible, the finished goods are subject to damage from fire, smoke, and moisture.

Without adequate dust collection and ventilation systems, dust generated in the cutting and handling processes can explode, causing a fire. Chemicals used for coatings, fuels, flammable adhesives and inks used to complete most boxes add significantly to the fire load. These should be stored away from combustibles.

Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss.

Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and indirect such as time element.

Crime exposure is from employee dishonesty. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. Paper and paperboard boxes are all susceptible to damage by fire, water, collision or overturn.

Business auto exposure can be high if the manufacturer transports parent rolls or finished goods. Tie down of parent rolls is very important because they can be as large and as heavy as logs. Manufacturers generally have private passenger fleets used by sales representatives.

There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 2652 Setup Paperboard Boxes, 2653 Corrugated And Solid Fiber Boxes, 2655 Fiber Cans, Tubes, Drums, And Similar Products, 2656 Sanitary Food Containers, Except Folding, 2657 Folding Paperboard Boxes, Including Sanitary
  • NAICS CODE: 322211 Corrugated and Solid Fiber Box Manufacturing, 322212 Folding Paperboard Box Manufacturing, 322130 Paperboard Mills, 322219 Other Paperboard Container Manufacturing
  • Suggested ISO General Liability Code(s): 51575, 51576
  • Suggested Workers Compensation Code(s): 4240, 4243, 4244

Description for 2652: Setup Paperboard Boxes

Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 265: Paperboard Containers And Boxes

2652 Setup Paperboard Boxes: Establishments primarily engaged in manufacturing setup paperboard boxes from purchased paperboard.

  • Boxes, newsboard: metal edged
  • Boxes, setup paperboard
  • Filing boxes, paperboard

Description for 2653: Corrugated And Solid Fiber Boxes

Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 265: Paperboard Containers And Boxes

2653 Corrugated And Solid Fiber Boxes: Establishments primarily engaged in manufacturing corrugated and solid fiber boxes and related products from purchased paperboard of fiber stock. Important products of this industry include corrugated and solid fiberboard boxes, pads, partitions, display items, pallets, single face products, and corrugated sheets.

  • Boxes, corrugated and solid fiber
  • Containers, corrugated and solid fiberboard
  • Display items, corrugated and solid fiberboard
  • Hampers, shipping: paperboard and solid fiber
  • Pads, corrugated and solid fiberboard
  • Pallets, corrugated and solid fiberboard
  • Partitions, corrugated and solid fiberboard
  • Sheets, corrugated and solid fiberboard

Description for 2655: Fiber Cans, Tubes, Drums, And Similar Products

Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 265: Paperboard Containers And Boxes

2655 Fiber Cans, Tubes, Drums, And Similar Products: Establishments primarily engaged in manufacturing from purchased materials fiber cans, cones, drums, and similar products, with or without metal ends, and vulcanized fiber boxes.

  • Ammunition cans or tubs, paperboard laminated with metal foil
  • Bobbins, fiber
  • Bottles, paper fiber
  • Boxes, vulcanized fiber
  • Candelabra tubes, fiber
  • Cans, composite: foil-fiber and other combinations
  • Cans, fiber (metal-end or all-fiber
  • Cases, mailing: paper fiber (metal-end or all-fiber)
  • Cones, fiber: for winding yarn, string, ribbons, or cloth
  • Containers, laminated phenolic and vulcanized fiber
  • Containers, liquid tight fiber (except sanitary food containers)
  • Cores, fiber (metal-end or all-fiber)
  • Drums, fiber (metal-end or all-fiber)
  • Hampers, shipping: vulcanized fiber
  • Mailing cases and tubes, paper fiber (metal-end or all-fiber)
  • Pans and voids, fiber or cardboard
  • Ribbon blocks, fiber
  • Spools, fiber (metal-end or all-fiber)
  • Textile reels, fiber
  • Textile spinning bobbins, fiber (metal-end or all-fiber)
  • Tubes, fiber or paper (with or without metal ends)
  • Tubes, for chemical and electrical uses: impregnated paper or
  • Wastebaskets, fiber (metal-end or all-fiber)

Description for 2656: Sanitary Food Containers, Except Folding

Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 265: Paperboard Containers And Boxes

2656 Sanitary Food Containers, Except Folding: Establishments primarily engaged in manufacturing non-folding food containers from special foodboard. Important products of this industry include fluid milk containers, round nested food containers, paper cups for hot or cold drinks, and stamped plates, dishes, spoons, and similar products. Establishments primarily engaged in manufacturing similar items of plastics materials are classified in Industry Group 308 and those making folding sanitary cartons are classified in Industry 2657.

  • Containers, food, sanitary: except folding
  • Cups, paper: except those made from pressed or molded pulp
  • Dishes, paper: except those made from pressed or molded pulp
  • Drinking cups, paper except those made from pressed or molded
  • Drinking straws, except glass or plastics
  • Food containers, non-folding paperboard, sanitary
  • Food containers, sanitary: except folding
  • Frozen food containers, non-folding paperboard
  • Ice cream containers, non-folding paperboard
  • Milk cartons, paperboard
  • Plates, paper: except those made from pressed or molded pulp
  • Soda straws, except glass or plastics
  • Spoons, paper: except those made from pressed or molded pulp
  • Utensils, paper: except those made from pressed or molded

Description for 2657: Folding Paperboard Boxes, Including Sanitary

Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 265: Paperboard Containers And Boxes

2657 Folding Paperboard Boxes, Including Sanitary: Establishments primarily engaged in manufacturing folding paperboard boxes from purchased paperboard, including folding sanitary food boxes or cartons except milk cartons.

  • Boxes, folding paperboard
  • Cartons, folding, except milk cartons: paperboard
  • Frozen food containers, folding paperboard
  • Ice cream containers, folding paperboard
  • Pails, folding sanitary food: paperboard
  • Paperboard backs for blister or skin packages

Box Manufacturers Insurance - The Bottom Line

Not every box manufacturers insurance policy is the same. In fact - they can be very different in cost, coverage and exclusions. To see if your company has the best fit insurance policies for your operations, speak with an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.


Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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