Millwork Manufacturers Insurance Policy Information
Millwork Manufacturers Insurance. Millwork building materials have been used in construction and architecture for centuries. It started as an industry that provided profiled and patterned wood components by milling, but, as each industry, millwork evolved.
Millwork manufacturers produce hardwood and softwood windows, doors, and related framing. They may produce other finished carpentry materials, including baseboards, wainscoting, wall paneling, and wood floors. Custom millwork shops may also produce cabinetry or furniture.
The manufacturer receives wood in specific lengths and widths. The wood is seasoned (dried either in kilns or in the yard), worked to dimension using jointers, planers, routers, and lathes, sanded, and assembled with glue or hardware into products.
While most are unfinished, in some high volume production work they may be given a coat of primer. Modern production work will usually employ CNC workstations (computerized machining), but custom work may be done by hand. Custom manufacturers may also install their product.
Now, a number of different materials, such as plastic, are used as well. Doors, windows, fireplaces, stairways, cabinetry, and even switch plates can all be made of millwork building materials.
Aside from decoration, a lot of these products play an important role in energy efficiency. These products are used both in new buildings and in renovations.
Read on to discover why business insurance is so important, and what kind of millwork manufacturers insurance coverage firms that make these products may need.
Millwork 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 millwork manufacturing insurance questions:
- How Much Does Millwork Manufacturers Insurance Cost?
- Why Do Millwork Manufacturers Need Insurance?
- What Type Of Insurance Do Millwork Manufacturers Need?
How Much Does Millwork Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small millwork manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Millwork Manufacturers Need Insurance?
No business is without risk. Some risks are universal, and can affect each company regardless of its line of work, while others are specific to a certain industry. Natural disasters, such as floods, earthquakes, wildfires and lightning strikes can impact your company regardless of what you do.
Theft and vandalism are universal risks as well, and both can cause a great deal of financial damage to any company.
On the other hand, the manufacture of millwork materials has risks of its own. A lot of expensive machines are employed in the production line, and there are a lot of sharp tools, which puts workers at a high risk of work-related injuries.
Following health and safety procedures and taking precautions can lower some risks, but nobody is absolutely safe. Each mishap can affect your business financially. Some costs can be covered in-house, but some unforeseen circumstances cause financial losses of such a magnitude that you'd have to close your business.
That is why it is always smart to have a backup plan, in the form of proper millwork manufacturers insurance.
What Type Of Insurance Do Millwork Manufacturers Need?
It's not easy to give a simple answer to this question, since each company is unique and has specific needs. That is why the best option for you would be to talk to a skilled commercial insurance agent. Together, you will find the best millwork manufacturers insurance coverage for your business.
Each detail, such as the terrain, climate, the amount of work, or your number of employees, can affect which risks you're facing. Some of the most common types of insurance millwork manufacturing companies need include:
- General Liability: This type of insurance protects your company from any costs resulting from damage caused to third parties, including bodily injury liability and property damage liability. It can cover machines your company rents or leases as well.
- Commercial Property: This type of millwork manufacturers insurance shields your physical property from any damage caused by unforeseen circumstances. This includes damage caused by theft and vandalism, as well as damage resulting from the forces of nature (such as earthquakes, floods, fire, and hurricanes).
- Product Liability: In the event that your product causes bodily harm to a third party after its sale, you will be protected with this type of insurance. Also, if, for any reason, you need to recall your product, this type of insurance can cover the actual and potential loss of revenue.
- Workers' Compensation: Workers in the millwork industry have a greater risk of work-related injuries and illnesses than those in some other industries. That is why it is important to have a way of protecting both your workers, if something happens, and your company, in the case of a lawsuit. This type of insurance will cover injured workers' medical bills as well as lost income.
Millwork products have been an integral part of construction for a long time, and will continue to be in the foreseeable future. This industry has a great potential for development, as no company has a monopoly on the market. Because the risks are many, you will need somebody to watch your back, in case the worst happens.
That is what millwork manufacturers insurance is for, but remember that your commercial insurance needs are as unique as your business and that only a commercial insurance broker can help you work out the best plan for you.
Millwork Manufacturing's Risks & Exposures
Premises liability exposure at the plant is normally low as access by visitors is limited. If tours are given or if there is a retail outlet on the premises, visitors may be injured by slips, trips, falls, or flying debris.
The storage of wood in the open could pose an attractive nuisance hazard. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Dust, fire or explosion, fumes, and noise may cause damage to adjacent properties.
If the manufacturer offers retail delivery or installation, there may be frequent small property damage claims.
Products liability exposure normally arises out of the installation, not the product. Workmanship errors, such as wood splinters, protruding nails, or poorly cut openings, present nuisance hazards.
Environmental impairment exposure can be significant due to possible contamination of ground, air, or water from sawdust, chemicals, paints, and varnishes generated by processing. In addition, the lubricants and solvents used to service machinery. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure is very high. Injuries from production machinery are common, as are slips, trips, falls, back injuries from lifting, foreign objects in the eye due to flying wood chips and dust, hearing loss from noise, and repetitive motion losses. There should be safety training and protective equipment. Workstations should be ergonomically designed
Amputations can occur from working with saws. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Exposure to chemicals, dust, glues, binding agents, paints, and varnishes can result in burns and eye, skin, and lung irritation. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, shop, warehouse for finished goods, and often a yard for storage of raw materials. Ignition sources include electrical wiring, heating, and cooling equipment, overheating of production machinery, and explosions from the build-up of dust from the cutting and sanding operations.
The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate disposal procedures. Wood is highly combustible and susceptible to damage by fire, smoke, and water.
Glues and paints, if any, are flammable and must be adequately separated and stored away from other operations. Spray-painting operations should be done in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention.
Exotic woods or expensive hardwood products may be attractive to thieves. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures can be high if a lengthy amount of time is required to restore operations.
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 under time element.
Crime exposure comes from employee dishonesty and theft if the raw wood is expensive or finished items are high in demand. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock.
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), contractors' equipment, and exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
The major perils are fire, water damage, theft, collision and overturn. If the manufacturer installs products, an installation floater should be considered.
Business auto exposure may be very high if the manufacturer transports raw lumber or delivery finished goods. Proper loading and tie-down procedures are essential to prevent overturn and /or release of lumber. The risk increases if there is a potential for long haul or time pressures on drivers.
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: 2515 Mattresses, Foundations, And Convertible Beds
- NAICS CODE: 337910 Mattress Manufacturing, 332612 Spring Manufacturing
- Suggested ISO General Liability Code(s): 56699, 59975
- Suggested Workers Compensation Code(s): 2570, 3300
Description for 2515: Mattresses, Foundations, And Convertible Beds
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2515 Mattresses, Foundations, And Convertible Beds: Establishments primarily engaged in manufacturing innerspring mattresses, box spring mattresses.
- Beds, sleep-system ensembles: flotation and adjustable
- Beds, sofa and chair: on frames of any material
- Bedsprings, assembled
- Box springs, assembled
- Chair and couch springs, assembled
- Cot springs, assembled
- Cushion springs, assembled
- Cushions, spring
- Foundations, bed: spring, foam, and platform
- Mattresses, containing felt, foam rubber, urethane, etc.
- Mattresses: innerspring, box spring, and non-innerspring
- Sofas, convertible
- Spring cushions
Millwork Manufacturers Insurance - The Bottom Line
Millwork manufacturers insurance policies can be very different in coverage, premiums and exclusions. To discover if your millwork manufacturing operation has the best fit insurance policies - talk to an experienced business 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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
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.