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Paper And Allied Products Manufacturers Insurance Policy Information

Paper And Allied Products Manufacturers Insurance

Paper And Allied Products Manufacturers Insurance. While paper and pulp mills are devoted to processing wood chips and other fibers to make sheets of paper, companies that manufacture paper and allied products take this stage in manufacture to the next level by transforming paper sheets into usable finished goods.

Paper and allied product manufacturers produce three basic types of products: packaging, stationery and printing materials, and also miscellaneous paper products such as those used for medical and sanitary purposes.

They receive large rolls called parent rolls from pulp and paper mills. These rolls are cut and processed by folding, texturing, printing, dyeing, coating, or similar means to produce final products.

Businesses within this field may be engaged in the production of diverse types of paper and paperboard packaging, including egg cartons and muffin liners. They may make stationary, postage stamps, paper straws, kitchen towels, coloring sheets, playing cards, sanitary towels, and almost any other paper-based product one could imagine.

In the process, manufacturers within the field of paper and allied products may coat, pigment, print, scent, and finish their products, depending on the nature of the finished commodity. The manufacture of paper and allied products is a complex business that requires the use of numerous chemicals and industrial machines.

What can companies that make paper and related goods do to protect their business interests from major perils? While risk management is always multifaceted, insurance plays a vital role. Here, we will take a look at the types of paper and allied products manufacturers insurance policies that may be needed.

Paper and allied products 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 paper and allied products manufacturing insurance questions:

How Much Does Paper And Allied Products Manufacturers Insurance Cost?

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

Why Do Paper And Allied Products Manufacturers Need Insurance?

Insurance For Manufacturers

Both small entrepreneurs and larger companies running large manufacturing facilities may ask themselves how they can save on the many costs associated with running a business. In the process, it can be tempting to opt for minimal insurance to merely meet legal requirements.

By investing in business insurance coverage, however, a company acknowledges the reality that it could at any moment be confronted by devastating risks.

Theft, vandalism, and acts of nature as diverse as earthquakes, hail, lightning strikes, and wildfires may cause significant damage to your manufacturing facility and all the physical assets within it.

As your building and equipment need repair, you are left not only with the related costs but also the impact of business interruptions. The right insurance can bridge the gap and help save your company.

Liability threats should also, always, be considered. Manufacturers of paper and allied products face the risk that an employee sustains occupational injuries resulting from exposure to some of the chemicals you work with, for example.

Even a situation in which a third party slips on your floor, or has a machine fall on them, could lead to both injury and drawn-out litigation. In the event that a chemical you use damages the environment due to a spill or leak, the resulting costs could once again be catastrophic.

A paper and allied products manufacturers insurance plan tailor-made for your business can protect you from significant losses, thereby allowing your business to recover from any ill that befalls it.

What Type Of Insurance Do Paper And Allied Products Manufacturers Need?

Obtaining the insurance that will best serve your needs is not as simple as acquiring a generic commercial insurance plan - consulting a commercial insurance agent offers the best results.

This is because your insurance needs are as unique as your business, and they depend on factors as varied as the location of your manufacturing facility, your number of employees, and the types of potentially hazardous substances you use in your manufacturing process.

Companies making paper and related goods will, however, unquestionably need the following types of paper and allied products manufacturers insurance policies:

  • Commercial Property: This type of insurance exists to protect you from financial losses resulting from theft, vandalism, acts of nature, and other unforeseen circumstances. It can help cover repair costs, replace the value of lost physical assets, and cover some of the revenue lost to these perils as well.
  • General Liability: Designed to protect you in the event that a third party sues your company alleging that you are responsible for bodily injury or property damage, this form of paper and allied products manufacturers insurance helps cover your legal defense costs. If a lawsuit is successful, it can further cover settlement fees.
  • Workers' Compensation: This kind of insurance will reimburse an employee who has medical costs or lost wages after sustaining a work-related injury or illness. In the process, it additionally prevents lawsuits.

These types of insurance are essential, but may not meet all your needs. Companies making paper and allied products may further want to consider product liability insurance, which protects against circumstances in which a product you made causes harm to an end consumer.

If your company uses vehicles, you will need commercial auto insurance as well. To discover what paper and allied products manufacturers insurance coverage will optimally shield your business from perils, partner with a reputable commercial insurance broker.

Paper And Allied Products Manufacturing's Risks & Exposures


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.

The yard 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 but increases dramatically if any products are manufactured for medical or sanitary uses. In the event of product contamination, it may be impossible to coordinate a product recall or defend against questionable claims unless there is an aggressive quality control program in place, including high standards for materials and documentation of sources.

Environmental impairment exposure may be low unless flammable or reactive liquids and dyes are used in the processing. These 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 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 maintenance and repair of the machinery.

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 exposures consist 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 glues, adhesives and dyes 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.

Because products intended for medical or sanitary use may be required to be produced in a sterile environment, a small fire may result in a total 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 severe loss, both direct and under 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 goods are all susceptible to damage by fire, water damage, collision or overturn.

Commercial 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 also 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

Description for Major Group 26: Paper And Allied Products

This major group includes establishments primarily engaged in the manufacture of pulps from wood and other cellulose fibers, and from rags; the manufacture of paper and paperboard; and the manufacture of paper and paperboard into converted products, such as paper coated off the paper machine, paper bags, paper boxes, and envelopes. Also included are establishments primarily engaged in manufacturing bags of plastics film and sheet. Certain types of converted paper products are classified elsewhere, such as abrasive paper which is in Industry 3291; carbon paper in Industry 3955; and photosensitized and blueprint paper in Industry 3861.

Industry Group 267: Converted Paper And Paperboard Products
  • 2671 Packaging Paper And Plastics Film, Coated and Laminated
  • 2672 Coated and Laminated Paper, Not Elsewhere Classified
  • 2673 Plastics, Foil, And Coated Paper Bags
  • 2674 Uncoated Paper and Multiwall Bags
  • 2675 Die-Cut Paper And Paperboard and Cardboard
  • 2676 Sanitary Paper Products
  • 2677 Envelopes
  • 2678 Stationery, Tablets, And Related Products
  • 2679 Converted Paper And Paperboard Products, Not Elsewhere Classified

Paper And Allied Products Manufacturers Insurance - The Bottom Line

Paper and allied products manufacturers insurance policies can be very different in premiums and coverages. You can learn if your business has the best fit insurance policies by talking to an experienced commercial insurance agent.

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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