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:
- What Is Millwork Manufacturers Insurance?
- How Much Does Millwork Manufacturers Insurance Cost?
- Why Do Millwork Manufacturers Need Insurance?
- What Type Of Insurance Do Millwork Manufacturers Need?
- What Does Millwork Manufacturers Insurance Cover & Pay For?
What Is Millwork Manufacturers Insurance?
Millwork manufacturers insurance is a type of insurance coverage designed specifically for businesses that manufacture millwork products, such as wooden cabinetry, doors, windows, and other similar products.
This type of insurance provides coverage for risks associated with the millwork manufacturing process, including property damage, product liability, and general liability. The insurance policy may also cover the cost of repairing or replacing damaged millwork products, as well as the cost of defending against lawsuits or claims arising from the use or sale of the products.
Millwork manufacturers insurance is an important protection for millwork manufacturers, helping them to manage the financial risks associated with their business and protect their bottom line.
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.
What Does Millwork Manufacturers Insurance Cover & Pay For?
Millwork manufacturers, like all other businesses, can be exposed to a variety of legal risks. Here are some common reasons they might be sued, and how insurance can protect them:
1. Product Liability: This is one of the most common reasons millwork manufacturers can be sued. If a product they produce is faulty or causes harm to a customer, they could face a lawsuit. For example, a customer might get injured because of a defective door or window frame. In such cases, product liability insurance can cover the costs of legal defense and any damages awarded. This type of insurance can protect a millwork manufacturer against claims of bodily injury, property damage, or economic losses caused by a product they made or sold.
2. Worker Injuries: Millwork manufacturing often involves heavy machinery and manual labor, which can lead to workplace accidents. If a worker gets injured on the job, the manufacturer could be sued for damages. Workers' compensation insurance is designed to cover such cases. It can pay for medical expenses, lost wages, rehabilitation costs, and death benefits in the event of a workplace injury or illness. It also provides employer's liability coverage, which can help pay for legal costs if an employee sues for a work-related injury or illness.
3. Property Damage: A millwork manufacturer could be sued if their operations cause damage to someone else's property. For instance, a fire originating from their facility could spread to neighboring buildings. Commercial property insurance can cover the costs associated with such damages. Additionally, a general liability policy could also offer coverage for third-party property damage claims.
4. Professional Errors: Millwork manufacturers could also be sued for errors and omissions, such as failing to meet a client's specifications or deadlines. This could result in financial loss for the client, who might then decide to sue. Professional liability insurance (also known as Errors and Omissions Insurance) can cover the costs associated with such lawsuits. This type of insurance can help pay for defense costs, settlements, and judgments related to claims of professional negligence or mistakes.
5. Contract Disputes: If a millwork manufacturer fails to fulfill the terms of a contract, they could be sued for breach of contract. For instance, if they fail to deliver products on time or if the products don't meet the quality agreed upon, the client may sue for damages. Commercial general liability insurance often provides coverage for certain contract dispute claims, and some businesses may also choose to carry specific contract dispute or legal expense insurance.
Insurance policies play a crucial role in protecting businesses from potentially catastrophic costs associated with lawsuits. However, they are not a substitute for good business practices, such as maintaining high-quality standards, ensuring safe working conditions, and meeting contractual obligations.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2515 Mattresses, Foundations, And Convertible Beds
- NAICS CODE: 337910 Mattress Manufacturing, 332613 Spring Manufacturing
- Suggested Workers Compensation Code(s): 2570 Mattress or Box Spring Manufacturing, 3300 Bedspring or Wire Mattress Manufacturing
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.
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- 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
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Psychedelic Drugs
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.