Paper And Allied Products Manufacturers Insurance Policy Information
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:
- What Is Paper And Allied Products Manufacturers Insurance?
- How Much Does Paper And Allied Products Manufacturers Insurance Cost?
- Why Do Paper And Allied Products Manufacturers Need Insurance?
- What Type Of Insurance Do Paper And Allied Products Manufacturers Need?
- What Does Paper And Allied Products Manufacturers Insurance Cover & Pay For?
What Is Paper And Allied Products Manufacturers Insurance?
Paper and Allied Products Manufacturers Insurance is a type of insurance policy that provides protection for businesses that manufacture paper and related products.
This coverage includes protection for property damage, liability, and loss of income due to unexpected events such as fires, storms, and other natural disasters. It also covers liability claims arising from injury or damage caused by the products manufactured.
This insurance is specifically designed to help paper and allied product manufacturers protect their operations and assets, as well as their customers and employees.
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?
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.
What Does Paper And Allied Products Manufacturers Insurance Cover & Pay For?
Paper and allied products manufacturers, like any other industry, can face a variety of lawsuits. The reasons could include breach of contract, product liability, workplace accidents, environmental issues, and intellectual property disputes. Insurance plays a pivotal role in mitigating these risks by providing financial support in the event of a lawsuit.
1. Breach of Contract: Manufacturers can be sued if they fail to meet the terms of a contract with clients or vendors. For example, they may fail to deliver goods within the agreed timeframe or the product doesn't meet the agreed specifications. This could result in a breach of contract lawsuit. A General Liability Insurance policy can help cover the legal costs and any damages awarded in such cases.
2. Product Liability: If the paper products manufactured are found to be faulty or cause harm, a product liability lawsuit could be filed. This could arise from manufacturing defects, design defects, or failure to provide adequate warnings. Product Liability Insurance can help pay for legal defense costs, settlements, and any court-awarded damages in such situations.
3. Workplace Accidents: Employees may file a lawsuit in the event of injuries or illnesses caused due to unsafe working conditions. Workers' Compensation Insurance not only is a legal requirement in most jurisdictions, but it also provides coverage for medical expenses, rehabilitation costs, and a portion of lost wages for injured employees, and can provide employer liability coverage to help protect against lawsuits related to workplace accidents.
4. Environmental Issues: The paper manufacturing process can lead to environmental pollution if not properly managed. If a company is found to be responsible for environmental damage, they could be sued. Environmental or Pollution Liability Insurance can cover the cleanup costs and legal fees associated with these claims.
5. Intellectual Property Disputes: If a manufacturer is accused of infringing on another company's patent, trademark, or copyright, they could face a lawsuit. Intellectual Property Insurance can help cover the costs of legal defense and any potential settlements or judgments.
In conclusion, insurance can provide significant financial protection for paper and allied products manufacturers against a range of potential lawsuits. Not only does it help cover the costs of legal defense, but it can also cover settlements, judgments, and other related expenses, helping to ensure the financial stability of the company.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2671 Paper Bag and Coated and Treated Paper Manufacturing, 2672 Paper Bag and Coated and Treated Paper Manufacturing, 2673 Plastics Bag and Pouch Manufacturing, 2674 Paper Bag and Coated and Treated Paper Manufacturing, 2675 Paper Bag and Coated and Treated Paper Manufacturing, 2676 Sanitary Paper Product Manufacturing, 2677 Stationery Product Manufacturing, 2678 Stationery Product Manufacturing, 2679 All Other Converted Paper Product Manufacturing
- NAICS CODE: 322220 Paper Bay and Coated and Treated Paper Manufacturing, 322230 Stationery Product Manufacturing, 322291 Sanitary Paper Product Manufacturing, 322299 All Other Converted Paper Manufacturing
- Suggested Workers Compensation Code(s): 4239 Paper Manufacturing, 4250 Paper Corrugating or Laminating, 4251 Stationery Manufacturing, 4279 Paper Goods Manufacturing NOC, 4273 Plastic or Paper Bag Manufacturing, 4282 Boot or Shoe Pattern Manufacturing
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.
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.
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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.