Wood Furniture Manufacturers Insurance

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Wood Furniture Manufacturers Insurance Policy Information

Wood Furniture Manufacturers Insurance

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:


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?

Insurance For Manufacturers

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

Manufacturing

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.

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 ISO General Liability Code(s): 53731, 53732, 53733
  • Suggested Workers Compensation Code(s): 2883

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
  • Dressers
  • 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.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.


Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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