Pulp And Paper Mills Insurance Policy Information
Pulp And Paper Mills Insurance. Pulp mills transform wood chips or other plant fibers - such as cotton, straw, and even recycled paper products - into pulp, which typically contains all the components (like cellulose and lignin) needed to manufacture paper or cardboard products.
Paper mills take the fiber board a pulp mill produces, and covert it to paper products with varying attributes and purposes.
Pulp or paper mills convert raw lumber or logs into paper. When the lumber is received, the bark is stripped off and the lumber is sent through machinery which converts it into chips. Pulp is made by adding water, and a chemical mix, called "liquor" to the chips and recycled paper scraps.
Some paper mills add rags, flax, or other plant residues. The mixture is cooked under pressure, washed, bleached, and then blended with binding agents. The chemical mixture is reclaimed and saved for reuse. Finally, the pulp is formed into sheets on a conveyor, pressed by rollers, and dried to form rolls of paper, which are then cut to the desired size.
The large heavy rolls of tightly wound paper are called parent rolls and are shipped to customers' factories to be converted into the end products.
These industries together represent some of the largest converters of wood, and the products that can result range from household products like printer paper, toilet paper, and tissues, all the way to goods such as wallpaper, postage stamps, confetti, and packaging.
The paper industry can be profitable, but modern pulp and paper mills now largely rely on chemical processes to streamline their production. These chemicals, including sulfite and sulfate but also bleach for white products, might be essential to a company's production line, but they also represent just one hazard paper and pulp mills face.
What kind of pulp and paper mills insurance are needed to carry to safeguard and prepare for the multitude of risks that could threaten their company's financial future? Discover more in this short guide.
Pulp and paper mills 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 pulp and paper mills manufacturing insurance questions:
- How Much Does Pulp And Paper Mills Insurance Cost?
- Why Do Pulp And Paper Mills Need Insurance?
- What Type Of Insurance Do Pulp And Paper Mills Need?
How Much Does Pulp And Paper Mills Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pulp and paper mills manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Pulp And Paper Mills Need Insurance?
While pulp and paper mills will do everything in their power to run a smooth and profitable operation, the fact is that accidents and other unforeseen circumstances are a realistic risk.
Those who own and operate pulp or paper mills have to contend with risks common to all companies, even outside manufacture, as well as those specific to their own industry. While the risks themselves are incredibly varied, one factor binds them together - they can have devastating economic consequences for your business.
Accidents or equipment malfunction could cause a worker to become injured, for example, after which they will hold your company legally responsible. Long-term occupational illnesses, such as cancer or respiratory conditions, may also result from exposure to harmful chemicals, even if health and safety protocols are meticulously adhered to.
Theft, vandalism (arson included), and acts of nature like wildfires, floods, or hurricanes can put all the hard work you have done to build your company at serious risk with very little or no warning. Third parties could become injured on your premises, too, or environmental chemical leaks could do significant damage to the local environment.
In these and other cases, a company would be solely responsible for covering the resulting costs if they are not adequately insured. People often colloquially refer to anything that may protect them from harm as their "insurance policy", and that is for good reason.
Having the right pulp and paper mills insurance will help your business recover from the many risks it faces.
What Type Of Insurance Do Pulp And Paper Mills Need?
The exact spectrum of pulp and paper mills insurance you will need depends on factors like the jurisdiction within which your paper or pulp mill is based, whether your process is mechanical, chemical, or a combination of both, how many workers you employ, and your output quantities.
A commercial insurance agent is therefore essential in helping you acquire the right insurance. Some examples of coverage pulp and paper mills need, meanwhile, include:
- Commercial Property: Unforeseen circumstances like acts of nature, theft, and vandalism can damage or destroy a range of physical assets, from your building to valuable manufacturing equipment, raw materials stored onsite, and finished products waiting to be shipped out. Commercial property insurance covers all of this.
- Commercial General Liability: This general type of pulp and paper mills insurance is designed to protect companies from financial losses resulting from claims third parties make against them for bodily injury or property damage. That can include machines rented by you being damaged due to neglect, or any visiting non-employee suffering an accident on your premises. Many other kinds of liability insurance exist as well, including product liability insurance, which protects from loss resulting from harm caused by the use of your products.
- Workers Compensation: Both acute injuries resulting from accidents and occupational illnesses caused by chemical exposure are covered by workers' comp, which then provides the affected worker with funds to pay their medical bills and cover wages lost when they are not able to work.
These examples of essential forms of pulp and paper mills insurance should offer companies some talking points to bring up with a business insurance broker of their choosing.
Keep in mind that you will often get the most comprehensive coverage by deciding to obtain all your insurance from a single insurance company.
Pulp And Paper Mill'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. The storage of lumber and logs in the open could pose an attractive nuisance hazard.
he 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. Parent rolls not made to specifications (thickness, coatings, and moisture content) could cause jams in a customer's machinery.
Environmental impairment exposure is high due to possible contamination of ground, air, and water from the chemicals, solvents, and dust. Because pulp mills require large amounts of water for processing, they are usually located on rivers. Serious long-term contamination can result from intentional discharges and unintentional runoff.
In addition, the older recycled paper has been blamed as a source of PCB contamination in waterways. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure is very high due to the potential for injury from the unloading of logs, bark removal operation, loading and operating of chippers, and loading of parent rolls onto trucks. Injuries from production machinery are common, as are cuts, puncture wounds, amputations, burns, heat, and eye injuries, hearing loss from noise, back injuries from lifting and material handling, slips, trips, and falls.
Workers can be crushed by falling logs and parent rolls. Guarding of machines is critical, as well as lockout/tagout procedures during machine maintenance and repair. Exposure to dust and chemicals 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 an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and dust explosions.
These multiple ignition sources combined with combustible wood and paper, volatile chemicals used for coatings, the high heat necessary for processing, and the fuel sources result in a high exposure to fire. The parent rolls are a lower fire hazard because they are tightly wound and there is little oxygen to support combustion, but they are susceptible to water damage.
Machinery needs proper maintenance to prevent overheating and wear. Chemicals and fuels must be separated and stored away from combustibles. Without adequate dust collection and ventilation systems, dust generated by chipping and processing can explode, causing a fire.
Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss.
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 indirect.
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 mill offers credit, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. Lumber, recycled paper or parent rolls are all susceptible to damage by fire, water damage, collision, or overturn.
Business auto exposure is high as most pulp and paper mills transport loads of logs and parent rolls. These can spill onto a public road if there is a collision or overturn. Parent rolls may be heavier than logs, and do more damage in a collision.
Pickup of wood from logging areas may require trucks to travel on temporary roads with uneven terrain. Proper loading and tie down procedures are essential.
Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location. 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2611 Pulp Mills, 2621 Paper Mills, 2631 Paperboard Mills
- NAICS CODE: 322110 Pulp Mills, 322121 Paper (Except Newsprint) Mills, 322122 Newsprint Mills, 322130 Paperboard Mills
- Suggested ISO General Liability Code(s): 58503 Pulp Manufacturing, 57726 Paper Manufacturing
- Suggested Workers Compensation Code(s): 4206 Pulp Manufacturing - Ground Wood Process, 4207 Pulp Manufacturing - Chemical Process, 4239 Paper Manufacturing
Description for 2611: Pulp Mills
Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 261: Pulp Mills
2611 Pulp Mills: Establishments primarily engaged in manufacturing pulp from wood or from other materials, such as rags, linters, wastepaper, and straw. Establishments engaged in integrated logging and pulp mill operations are classified according to the primary products shipped. Establishments engaged in integrated operations of producing pulp and manufacturing paper, paperboard, or products thereof are classified in Industry 2621 if primarily shipping paper or paper products; in Industry 2631 if primarily shipping paperboard or paperboard products; and in Industry 2611 if primarily shipping pulp. Establishments primarily engaged in cutting pulpwood are classified in Industry 2411.
- Deinking of newsprint
- Fiber pulp: made from wood, rags, wastepaper, linters, straw, and
- Pulp mills
- Pulp: soda, sulfate, sulfite, groundwood, rayon, and semichemical
- Rayon pulp
- Wood pulp
Description for 2621: Paper Mills
Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 262: Paper Mills
2621 Paper Mills: Establishments primarily engaged in manufacturing paper from woodpulp and other fiber pulp, and which may also manufacture converted paper products. Establishments primarily engaged in integrated operations of producing pulp and manufacturing paper are included in this industry if primarily shipping paper or paper products. Establishments primarily engaged in manufacturing converted paper products from purchased paper stock are classified in Industry Group 265 or Industry Group 267.
- Absorbent paper
- Asbestos paper and asbestos filled paper
- Asphalt paper: laminated
- Asphalt sheathing
- Bag paper
- Blotting paper
- Bond paper
- Book paper
- Bristols, except bogus
- Building paper: sheathing, insulation, saturating, and dry felts
- Capacitor paper
- Catalog paper
- Cigarette paper
- Cleansing tissue stock
- Condenser paper
- Construction paper
- Cotton fiber paper
- Cover paper
- Dry felts, except textile
- Facial tissue stock
- Felts, building
- Filter paper
- Greaseproof wrapping paper
- Groundwood paper
- Hanging paper (wallpaper stock)
- Kraft sheathing paper
- Kraft wrapping paper
- Lining paper
- Lithograph paper
- Manila wrapping paper
- Matrix paper
- Milk filter disks
- Napkin stock, paper
- News tablet paper
- Offset paper
- Paper mills
- Paper, building
- Parchment paper
- Poster paper
- Printing paper
- Publication paper
- Roofing felt stock
- Rope and jute wrapping paper
- Rotogravure paper
- Saturated felt
- Shipping sack paper
- Tagboard, made in paper mills
- Tar paper, building and roofing
- Text paper
- Thin paper
- Tissue paper
- Toilet tissue stock
- Toweling paper
- Wallpaper stock (hanging paper)
- Wrapping paper
- Writing paper
Description for 2631: Paperboard Mills
Division D: Manufacturing | Major Group 26: Paper And Allied Products | Industry Group 263: Paperboard Mills
2631 Paperboard Mills: Establishments primarily engaged in manufacturing paperboard, including paperboard coated on the paperboard machine, from wood pulp and other fiber pulp; and which may also manufacture converted paperboard products. Establishments primarily engaged in integrated operations of producing pulp and manufacturing paperboard are included in this industry if primarily shipping paperboard or paperboard products. Establishments primarily engaged in manufacturing converted paperboard products from purchased paperboard are classified in Industry Group 265 or Industry Group 267. Establishments primarily engaged in manufacturing insulation board and other reconstituted wood fiberboard are classified in Industry 2493.
- Binders' board
- Bottle cap board
- Bristols, bogus
- Clipboard (paperboard)
- Clay coated board
- Container board
- Folding boxboards
- Liner board, kraft and jute
- Manila lined board
- Matrix board
- Milk carton board
- Paperboard mills, except building board mills
- Paperboard, except building board
- Patent coated paperboard
- Setup boxboard
- Shoe board
- Special food board
- Stencil board
- Strawboard, except building board
- Wet machine board
Pulp And Paper Mills Insurance - The Bottom Line
Pulp and paper mills insurance policies costs and coverages can vary by a lot. To find out if your 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.
- 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
- 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
- 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
- Vending Machines
- Vegetable Juice
- 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.