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:
- What Is Pulp And Paper Mills Insurance?
- 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?
- What Does Pulp And Paper Mills Insurance Cover & Pay For?
What Is Pulp And Paper Mills Insurance?
Pulp and paper mills insurance is a type of insurance coverage specifically designed for companies that manufacture or produce pulp and paper products. This insurance provides financial protection against the risks associated with the production and storage of these products, such as fire, theft, natural disasters, and other unexpected events.
The coverage typically includes liability protection for any damages or injuries caused by the company's operations, as well as property damage and business interruption insurance. The goal of this insurance is to help ensure that the company can continue to operate even in the event of an unexpected loss or damage, and to protect its financial stability.
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.
What Does Pulp And Paper Mills Insurance Cover & Pay For?
Pulp and paper mills can face several potential legal issues due to the nature of their operations. Below are some scenarios where they could be sued and how having insurance can protect them:
1. Environmental Damage: Pulp and paper mills often use chemicals that can be harmful to the environment. If these substances are not correctly managed and result in pollution, the company can be sued for environmental damage. Environmental liability insurance can help cover the costs of legal defense, settlements, and any mandated remediation efforts. It can also cover public relations expenses to manage the reputational damage.
2. Worker Injuries: The pulp and paper industry involves heavy machinery and potentially hazardous working conditions. If a worker gets injured, the company can be sued for damages. Workers' compensation insurance can provide coverage for medical expenses, lost wages, and legal costs associated with such lawsuits. Employers' liability insurance, often included with workers' compensation, can further protect against claims alleging employer negligence.
3. Product Liability: If a product manufactured at the mill causes harm to a consumer, the company could be held responsible. Product liability insurance can help cover the costs associated with defending against these claims, including any settlements or judgments, medical costs, and even recall costs.
4. Property Damage: Pulp and paper mills are at risk of fires, machinery breakdowns, or other incidents that could damage the property. In case the company is sued by a neighboring property owner or a tenant for damage caused to their property, commercial property insurance can help cover the repair or replacement costs, as well as any associated legal fees.
5. Business Interruption: In case of a major accident or disaster that causes operations to halt, the company could be sued by clients or customers for failure to deliver products. Business interruption insurance can cover the lost income during the downtime, and any legal fees or settlements related to such a lawsuit.
6. Professional Negligence: If the company provides poor advice or service that results in financial loss for a client, it can be sued for professional negligence. Professional indemnity insurance can cover the legal costs and any damages awarded in such a case.
Having the appropriate insurance coverage can help protect pulp and paper mills from the financial burden associated with lawsuits, and ensure they can continue their operations even in the face of significant legal challenges.
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 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.
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.