Wood Furniture Manufacturers Insurance Policy Information
Wood Furniture Manufacturers Insurance. Woodworking requires patience, skill, and hard work, and while furniture manufacturing giants have taken over a large share of the industry, small specialty businesses, too, can be competitive.
Manufacturers of wood furniture provide their customers with quality items, ranging from tables and chairs to beds, book cases, and desks that will, when cared for well, last more than a lifetime.
Wood furniture manufacturers produce a variety of furnishings including beds, cabinets, chairs, shelving, sofas, and tables. Furniture may be of solid wood, veneered plywood, or particle board, and includes parts made of metal, cloth, natural fibers (such as wicker and rattan), plastic, and other synthetic materials. The finished product may be pre-assembled, or assembled during installation by the customer or contractor.
Usually, the manufacturer receives wood products in specific lengths and widths. They are seasoned (dried either in kilns or in the yard), cut, planed, sanded, assembled with glue or hardware, stained, varnished, painted, or otherwise finished. Chairs or sofas may be upholstered. Modern production work will usually employ CNC workstations (computerized machining), but custom work may be done by hand.
Custom manufacturers may also install their product. Some furniture makers may also own a retail outlet. Component parts may be manufactured in different locations or different countries.
A robust and durable material, nothing can quite compare to wood — arguably the first material to ever be used for furniture making. The manufacturing process doesn't just require a keen eye, but also numerous steps. From selecting and cutting the wood, to sawing, planing, and grooving, there is no doubt that the furniture production process involves the use of a variety of tools and machines that can easily cause injury. In the wrong hands, yes, but also occasionally in the right hands.
That is just one reason why any company that makes wood furniture needs to carry comprehensive insurance. What should you be aware of? What types of wood furniture manufacturers insurance can manufacturers of wood furniture not do without? Read on to start learning about the first, essential, steps.
Wood furniture 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 wood furniture manufacturing insurance questions:
- What Is Wood Furniture Manufacturers Insurance?
- How Much Does Wood Furniture Manufacturers Insurance Cost?
- Why Do Wood Furniture Manufacturers Need Insurance?
- What Type Of Insurance Do Wood Furniture Manufacturers Need?
- What Does Wood Furniture Manufacturers Insurance Cover & Pay For?
What Is Wood Furniture Manufacturers Insurance?
Wood furniture manufacturers insurance is a type of insurance that provides coverage to manufacturers of wooden furniture. This type of insurance typically covers a range of potential losses and damages, such as damage to the manufacturer's building or equipment, damage or loss of raw materials, liability for injuries to employees, and product liability in case of defects in the furniture.
The coverage may also include protection for business interruption and loss of income. The goal of wood furniture manufacturers insurance is to help protect the manufacturer from financial losses and ensure the continuation of their business operations.
How Much Does Wood Furniture Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small wood furniture manufacturing businesses ranges from $57 to $89 per month based on location, size, revenue, claims history and more.
Why Do Wood Furniture Manufacturers Need Insurance?
Mid-sized and larger companies will already be familiar with the essential nature of insurance. Small ventures or lone craftsmen could, on the other hand, question whether they even require insurance at all. The answer is an irrevocable "yes".
Simply put, the right wood furniture manufacturers insurance coverage can easily make the difference between bankruptcy and continued commercial success when unforeseen circumstances knock on your door, particularly if you run a boutique furniture business.
You don't want a theft or an act of vandalism, or an act of nature like a lightning strike, a hurricane, or a wildfire to burden you with massive debt. You don't want to be rendered unable to continue working on your beautiful pieces of furniture when a crucial tool breaks down.
You don't want to be financially ruined because you accidentally damage a customer's property as you deliver their order, and they sue you. You most certainly don't want to be left without options if you, or an employee, becomes injured on the job.
As a wood furniture maker, you do face all of these risks — and more. That is why you need a comprehensive wood furniture manufacturers insurance plan to protect you, allowing you to focus on what you're good at.
What Type Of Insurance Do Wood Furniture Manufacturers Need?
The exact nature of your wood furniture manufacturers insurance needs will greatly depend on the size of your business, its location, your number of employees, and even whether you run a customer-facing store on-site.
Because wood furniture manufacturing companies are so diverse in scope, it is very difficult to assess your coverage needs without the support and knowledge of a reputable commercial insurance agent.
However, most businesses who work in manufacturing — including yours — will almost certainly need:
- General Liability: Liability insurance plans are tailored to every company's unique needs, but on a broader level, they all do the same thing. The fact that this kind of insurance protects your company in case of third-party property damage and personal injury liability means that it is an absolute requirement for wood furniture manufacturers of any size and scope.
- Commercial Property: Another essential type of insurance you will need as a wood furniture manufacturer, commercial property insurance can offer various levels of protection. It can cover the physical property in which you work, but also its contents, in the event of unforeseen circumstances that can include fire, theft, vandalism, and equipment breakdown. Any business with physical assets, whether buildings, inventory, or machinery, should carry commercial property insurance.
- Workers Compensation: This is a type of insurance you will want to carry in all cases, unless you are a very small business, in which case exceptions may apply. It is there to protect employees from injuries they may sustain on the job, which can, in the case of wood furniture manufacturers, be severe in nature. Workers' compensation insurance providers employees with funds to cover their medical costs and lost income, and companies from drawn-out litigation.
These three types cover merely the basics types of wood furniture manufacturers insurance coverage you should carry. You can carry individual policies, or opt for a commercial package policy that combines several different types of coverage under a single policy.
Wood Furniture Manufacturing's Risks & Exposures
Premises liability exposures is normally low, as access by visitors is limited. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, falls, or flying debris. Storage of wood in the open presents an attractive nuisance hazard.
The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Dust, fire or explosion, fumes, and noise may affect neighboring properties. If the manufacturer performs retail delivery or installation, there may be frequent small property damage claims.
Products liability exposure varies based on type of furniture produced. Chairs can collapse, and recliners and beds that open and close can tilt over or trap children or smaller adults inside. Children's furniture, particularly baby cribs, can result in large losses if not manufactured according to current governmental regulations, guidelines, and standards.
Warnings, age-appropriate information regarding potential hazards, and recall procedures are very important. Although household furniture tends to have lighter use than heavy institutional furniture (such as in bars, restaurants, and hotels), more injuries may occur because household furniture is not subject to regular inspection and maintenance. Courts also tend to apply stricter liability standards to consumer goods.
As furniture can be used for a long time, older items made before improved safety features were introduced may still be in use.
Environmental impairment exposure is moderate to high due to possible contamination of ground, air, and water from sawdust, chemicals, paints, and varnishes, used in processing and the lubricants and solvents used to service machinery. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures may be significant. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye due to flying wood chips and dust, hearing impairment from noise, back injuries from lifting, and repetitive motion injuries.
There should be safety training and protective equipment. Workstations should be ergonomically designed. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.
Exposure to chemicals, dust, glues, binding agents, paints, and varnishes can result in burns and skin, eye and lung irritation. Workers should be aware of the toxic nature of any chemical and should be made fully aware of the need to watch for early signs and symptoms of problems. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, shop, warehouse for raw materials and finished goods, and often a yard for raw materials. Ignition sources include electrical wiring, heating and cooling equipment, overheating of production machinery, and explosions from the build-up of dust due to cutting and sanding operations. The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Wood is highly combustible and susceptible to damage by fire, smoke, and water. Glues, paints, varnishes, and stains may be flammable and must be adequately separated and stored away from other operations. Spray-painting operations should be done in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention. Exotic woods or expensive hardwood products may be attractive to thieves.
Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Business income and extra expense exposures can be high if a lengthy amount of time is required to restore operations.
Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft if raw wood is expensive or finished items are high in demand. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.
There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), contractors' equipment for forklifts and other heavy machinery, exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
The major causes of loss are fire, water damage, theft, collision, and upset. If the manufacturer installs products, an installation floater should be considered.
Commercial exposure may be high if the manufacturer transports raw lumber or finished goods. Proper loading and tie-down procedures are essential to prevent overturn and /or release of lumber. Retail delivery to homes represents a serious exposure due to the street presence of children and possible time pressures on the drivers. Manufacturers generally have private passenger fleets used by sales representatives.
There should be written procedures regarding the private use of these vehicles by others. Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
What Does Wood Furniture Manufacturers Insurance Cover & Pay For?
Wood Furniture Manufacturers can be subject to a variety of lawsuits due to various reasons. Here are some scenarios where they might be sued, and how insurance can help cover the associated costs:
1. Product Liability: If a consumer gets injured due to a defective or unsafe product, they may sue the manufacturer. For example, a chair could break under normal usage leading to injury. In such cases, Product Liability Insurance can help. This insurance covers legal fees, court costs, and any settlements or judgments. The insurer would step in to manage the lawsuit and, if necessary, pay compensation to the injured party.
2. Workers' Compensation Claims: Employees could get injured while working. For instance, a worker might get injured while operating machinery. In such cases, the manufacturer could be sued for damages. Workers' Compensation Insurance not only meets statutory requirements in most states but also covers the medical expenses, rehabilitation costs, and a portion of lost wages for the injured worker. Furthermore, it usually includes employer's liability insurance, which can cover legal costs if the employee sues over the injury.
3. Property Damage: A fire or a natural disaster could cause significant damage to the manufacturing facility. While this may not lead to a lawsuit, it could lead to significant financial loss. Commercial Property Insurance can help in such cases by covering the cost of repairing or replacing the damaged property, allowing the manufacturer to recover more quickly from the loss.
4. Environmental Lawsuits: Wood furniture manufacturers could be sued for environmental damage, such as improper disposal of waste or use of hazardous chemicals. Pollution Liability Insurance can help cover the costs associated with these lawsuits, including legal defense, cleanup, and any fines or penalties imposed by regulatory agencies.
5. Intellectual Property Infringement: If a manufacturer is accused of copying a design from another company, they may face a lawsuit. Intellectual Property Insurance can help cover the legal defense costs, and if the company loses the lawsuit, it could also cover the damages awarded by the court.
Overall, insurance plays a crucial role in protecting wood furniture manufacturers from potential legal and financial risks. It's essential for businesses to carry suitable coverage based on their unique needs and risk exposure.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2511 Wood Household Furniture, Except Upholstered, 2512 Wood Household Furniture, Upholstered, 2521 Wood Office Furniture, 2541 Wood Office and Store Fixtures, Partitions, Shelving, And Lockers
- NAICS CODE: 337121 Upholstered Household Furniture Manufacturing, 337122 Non-upholstered Wood Household Furniture Manufacturing, 337211 Wood Office Furniture Manufacturing, 337215 Showcase, Partition, Shelving, and Locker Manufacturing
- Suggested Workers Compensation Code(s): 2883 Furniture Manufacturing and Cabinet Shop - Wood - NOC
Description for 2511: Wood Household Furniture, Except Upholstered
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2511 Wood Household Furniture, Except Upholstered: Establishments primarily engaged in manufacturing wood household furniture commonly used in dwellings. This industry also includes establishments manufacturing camp furniture. Establishments engaged in manufacturing upholstered furniture are classified in Industry 2512; those manufacturing reed, rattan, and similar furniture are classified in Industry 2519; those manufacturing television, radio, phonograph, and sewing machine cabinets are classified in Industry 2517; and those manufacturing kitchen cabinets and bath room vanities are classified in Industry 2434.
- Beds, including folding and cabinet beds: household-wood
- Bookcases, household: wood
- Breakfast sets (furniture), wood
- Bridge sets (furniture), wood
- Buffets (furniture)
- Cedar chests
- Chairs bentwood
- Chairs, household: except upholstered-wood
- Chests, silverware: wood (floor standing)
- Chiffoniers and chifforobes
- China closets
- Coffee tables, wood
- Console tables, wood
- Cots, household: wood
- Cradles, wood
- Cribs, wood
- Desks, household: wood
- Dining room furniture, wood
- Dressing tables
- End tables, wood
- Frames for box springs, bedsprings, or water beds: wood
- Furniture, household, wood: porch, lawn, garden, and beach
- Furniture, household, wood: unassembled or knock-down
- Furniture, household wood: unfinished
- Furniture, household clubroom, noveltywood, except upholstered
- Headboards, wood
- High chairs, children's: wood
- Juvenile furniture, wood: except upholstered
- Magazine racks, wood
- Nursery furniture, wood
- Playpens, children's: wood
- Rockers, wood: except upholstered
- Room dividers, household: wood
- Screens, privacy: wood
- Secretaries, household: wood
- Stands: telephone, bedside, and smoking-wood
- Stools, household: wood
- Storage chests, household: wood
- Swings, porch: wood
- Tables, household: wood
- Tea wagons, wood
- Vanity dressers
- Wardrobes, household: wood
- Whatnot shelves, wood
Description for 2512: Wood Household Furniture, Upholstered
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2512 Wood Household Furniture, Upholstered: Establishments primarily engaged in manufacturing upholstered furniture on wood frames. Shops primarily engaged in reupholstering furniture, or upholstering frames to individual order, are classified in Services, Industry 7641, or Retail Trade, Industry 5712. Establishments primarily engaged in manufacturing dual-purpose sleep furniture, such as convertible sofas and chair beds, are classified in Industry 2515, regardless of the material used in the frame. Establishments primarily engaged in manufacturing wood frames for upholstered furniture are classified in Industry 2426.
- Chairs, upholstered on wood frames, except convertible beds
- Couches, upholstered on wood frames, except convertible beds
- Furniture, household upholstered on wood frames, except convertible
- Juvenile furniture, upholstered on wood frames, except convertible
- Living room furniture, upholstered on wood frames, except
- Recliners, upholstered on wood frames
- Rockers, upholstered on wood frames sofas, upholstered on wood
Description for 2521: Wood Office Furniture
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 252: Office Furniture
2521 Wood Office Furniture: Establishments primarily engaged in manufacturing office furniture, chiefly of wood.
- Benches, office: wood
- Bookcases, office: wood
- Cabinets, office: wood
- Chairs, office: wood
- Desks, office: wood
- Filing boxes, cabinets, and cases: wood
- Furniture, office: wood
- Modular furniture systems, office, wood
- Panel furniture systems, office, wood
- Partitions, office: not for floor attachment-wood
- Stools, office: wood
- Tables, office: wood
Description for 2541: Wood Office and Store Fixtures, Partitions, Shelving, And Lockers
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 254: Partitions, Shelving, Lockers, And Office And
2541 Wood Office and Store Fixtures, Partitions, Shelving, And Lockers: Establishments primarily engaged in manufacturing shelving, lockers, and office and store fixtures, plastics laminated fixture tops, and related fabricated products, chiefly of wood. Prefabricated partitions are included in this industry if designed to be attached to the floor and are classified in Industry 2521 if designed to be free-standing or part of an office furniture panel system. Establishments primarily engaged in manufacturing refrigerated cabinets, showcases, and display cases are classified in Industry 3585.
- Bar fixtures, wood
- Butchers' store fixtures, wood
- Cabinets, show, display, and storage: except refrigerated-wood
- Counters and counter display cases, except refrigerated-wood
- Display cases and fixtures, not refrigerated: wood
- Drainboards, plastics laminated
- Fixture tops, plastics laminated
- Fixtures, display: office and store - wood
- Garment racks, wood
- Lockers, not refrigerated: wood
- Lunchroom fixtures, wood
- Partitions, prefabricated: wood for floor attachment
- Pedestals, statuary: wood
- Racks, merchandise display: wood
- Shelving, office and store: wood
- Showcases, not refrigerated: wood
- Sink tops, plastics laminated
- Store fronts, prefabricated: wood
- Table or counter tops, plastics laminated
- Telephone booths, wood
- Window backs, store and lunchroom: prefabricated-wood
Wood Furniture Manufacturers Insurance - The Bottom Line
Not all wood furniture manufacturers insurance polices are the same. In fact, they can vary widely in cost and coverage. To find out if your business has the best fit insurance policies, speak with an experienced commercial insurance agent.
Often they are able to save you on cost 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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- Plastic Goods
- Plastics Molding, Forming & Extruding
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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.