Learn how corrugated box manufacturers insurance helps cardboard industry manufacturing businesses protect themselves against the many complex risks they face every day. Whether your business is large or small, or you make one or many products - you need the right commercial insurance program to protect you.
Corrugated Box Manufacturers Insurance
Corrugated Box Manufacturers Insurance. Box and paperboard manufacturers produce various types of packaging and disposable containers. They receive large rolls called parent rolls from pulp and paper mills. These rolls are cut, folded, printed, glued, or stapled into products that must be assembled and glued at the customer's plant or ready-to-use boxes.
Product types include cartons, tubes, and corrugated boxes which are made of layers of corrugated paperboard glued together with a flat side (or sides) on top, bottom, or both.
Corrugated boxes are used in virtually every industry and for a variety of reasons. They are used to ship a wide-range of products, from foods and beverages, to clothing and shoes, and from household goods to sporting equipment.
As a corrugated box manufacturer, it's certainly safe to say that your business is invaluable. However, like any business in any industry, there are many risks associated with running your business. In order to ensure you, your clients and vendors, your employees, and your entire business is protected, investing in the right type of corrugated box manufacturers insurance coverage is essential.
Why Business Insurance Is So Important To Corrugated Box Manufacturing
Operating a corrugated box manufacturing business can certainly be lucrative and rewarding; however, there are certain pitfalls that you could face. An employee can sustain a work-related injury or develop a work-related illness. A client could sue you for negligence. A vendor could slip and fall while making a delivery. The property that you operate your business out of could be vandalized or damaged in a fire.
If any of these types of situations arise, you can be held legally responsible. The cost of damages and legal fees can be exorbitant and paying for them out of your own pocket can lead to financial devastation. For this reason, investing in the right type of corrugated box manufacturers insurance coverage is paramount. Should a catastrophe occur, your insurance carrier would help to cover the costs that you are responsible for.
Types Of Insurance For Corrugated Box Manufacturers
Like any business, there are a number of insurance policies that corrugated box manufacturing businesses should invest in. Some of these include:
- Commercial General Liability: Accidents happen on commercial sites all the time. Customers slip and fall and vendors are injured by falling objects. Commercial general liability insurance covers the damages that are associated with third-party injuries and claims. For example, if a light fixture falls from the ceiling and lands on a supplier, your insurance carrier would help to cover the cost of the individual's medical bills. It will also assist you with any legal fees that may arise in the event that the party files a lawsuit.
- Commercial Property: Your commercial property is vital to your success. It's where the corrugated boxes you produce are made and housed. Commercial property insurance protects the building of your business, as well as exterior locations, such as parking lots, signage, and lighting. It also covers business-related property that is housed inside the facility, including the tools and equipment that you use to make your products, computers, office furniture, and more. If a fire breaks out, your insurance carrier will help to cover the cost of the damages and replacement fees.
- Business Auto: It's very likely that you utilize vehicles for business-related reasons. If so, then carrying commercial auto insurance is a must. This type of coverage protects your vehicles, the property inside of them, the drivers and the passengers, in the event of an accident.
- Workers Compensation: Whether you employ a staff of 10, 100, or 1,000 people, you need to carry workers' comp insurance. This type of coverage will pay for any work-related injuries or illnesses that your employees may suffer; for example, if someone is injured as a result of malfunctioning equipment, then your insurance carrier would cover the cost of the individual's medical bills, as well as his or her lost wages. Should the staff member take legal action, your workers' comp coverage can also assist with the cost of hiring an attorney, court fees, and any compensation that you are required to pay.
- Errors and Omissions: Errors and omissions insurance is a form of professional liability coverage. It protects your business and your employees against any claims that your clients may make for negligence or unsatisfactory work. For instance, if a client files a lawsuit stating that you failed to deliver the products that were ordered, errors and omissions insurance would assist with the legal fees.
These are just some of the forms of insurance coverage you should carry as a corrugated box manufacturer.
Corrugated Box Products Manufacturing's Perils And Risks
Property exposure consists of office, plant, and warehouse for storage of parent rolls and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and dust explosions. While tightly wound parent rolls are not highly combustible, the finished goods are subject to damage from fire, smoke, and moisture. Without adequate dust collection and ventilation systems, dust generated in the cutting and handling processes can explode, causing a fire.
Chemicals used for coatings, fuels, flammable adhesives and inks used to complete most boxes add significantly to the fire load. These should be stored away from combustibles. Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss.
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 such as time element.
Crime exposure is from employee dishonesty. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. Paper and paperboard boxes are all susceptible to damage by fire, water, collision or overturn.
Premises liability exposure at the plant is normally low as access by visitors is limited. If tours are given, visitors may be injured by slips, trips, or falls. Rough lumber stored outside for pallet building can pose an attractive nuisance. These areas 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. If products are used to package food products for human or pet consumption, the exposure increases due to the use of inks and adhesives that may contaminate contents. Quality control measures are important.
Environmental impairment exposure is moderate to high. Adhesives, glues, solvents and other hazardous chemicals used in processing could contaminate ground, air, or water. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Commercial exposure can be high if the manufacturer transports parent rolls or finished goods. Tie down of parent rolls is very important because they can be as large and as heavy as logs. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Workers compensation exposure is high due to the potential for injury from burns, heat, cuts, puncture wounds, and amputations from box-cutting and slicing operations. Eye injuries are common, as are back injuries from lifting and material handling, slips, trips, and falls, hearing loss from machinery noise, and repetitive motion injuries.
Workers may be crushed by falling parent rolls. Guarding of machines is critical, as well as lockout/tagout procedures during machine maintenance and repair. Exposure to dust, dyes and adhesives can cause eye, skin and lung injuries from irritants. There should be safety training and personal protection equipment. Drivers of forklifts and vehicles may be injured in accidents.
Corrugated Box Manufacturers Insurance - The Bottom Line
We hope this article on corrugated box manufacturers insurance has been informative. Speak to a reliable insurance broker to find out more about what type of insurance you should invest in, how much you should carry, and how much it coverage will cost.
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