Furniture Manufacturer Insurance

Your property, from raw materials to finished goods awaiting shipment, is exposed to damage risks, such as fires, windstorms, theft, and vandalism, that could create costly disruptions and repairs.

Commercial property insurance provides coverage to rebuild damaged structures, machinery, equipment, furniture inventory, or other business contents after covered losses have occurred. Coverages usually include:

Building coverage- It is designed to pay for the repair or reconstruction of manufacturing facilities damaged by fire, lightning strikes, winds, or winter storms.

Business Personal Property Insurance – Replace or repair tools, equipment, supplies, furniture inventory and other contents after losses covered under coverage policies.

Business Income/Extra Expense Coverage – Reimburses you for lost income and extra costs associated with continuing operations following a covered loss, helping cover bills, payroll, and other ongoing expenses until you reopen for business.

Equipment Breakdown Coverage – When equipment like air compressors, dust collection systems, and hydraulic presses malfunction or break down unexpectedly, losses related to equipment repair, as well as business interruption losses may result. 

With adequate property limits, manufacturers can rebuild their manufacturing facilities after being damaged in a fire, storm, or other insured loss. 

An insurance broker can assist in setting the appropriate limits based on your operations and risks.

General Liability Insurance Protects Small Businesses Against Liability Lawsuits

Operating heavy machinery and overseeing employees creates the potential for expensive liability claims.

Slip and falls, malfunctioning products, and accidents on your premises could all lead to lawsuits demanding payment for injuries sustained and related costs.

General liability insurance – It protects you from the legal cost of investigating, defending, and settling these claims up to the policy limits purchased. Common types of business insurance coverages include:

Premises liability insurance – It protects your business against claims for bodily injury caused by slips, trips and falls, or other dangerous conditions on its property.

Products Liability Insurance – It protects against financial loss should your furniture products cause injuries or property damage.

Personal and Advertising Injury Liability Coverage – This insurance covers you if your actions result in libel/slander, copyright infringement, or any other personal or advertising injuries to people and entities.

Medical Payments – Business owners can cover minor medical expenses associated with injuries sustained on your property or due to products. 

Your insurance broker can help set the appropriate liability limits to give you the guarantee of coverage for your assets against costly lawsuits, with higher liability limits recommended if visitors visit your showroom on the premises.

Product Liability Insurance Is Essential

As furniture manufacturers, product liability claims represent one of the greatest threats your business must contend with.

Should any defect in one of your products cause injury or property damage, legal costs and payouts could become increasingly substantial.

Lawsuits against defective household furniture can potentially seek substantial compensation, blaming you for injuries.

Your general liability insurance helps protect against product liability; however, it would be prudent to purchase an additional policy that offers comprehensive coverage. It may include:

• Coverage for claims related to your products.
• Higher limits to protect your assets and net worth more effectively.
• Protection for product recall expenses should you remove defective merchandise from the market.

An experienced insurance broker understands the numerous product liability risks furniture companies must deal with and can craft an insurance solution tailored to your products, customers, and any possible loss scenarios.

Furniture Manufacturers Need Equipment Breakdown Insurance To Protect Assets

Your manufacturing equipment is susceptible to wear and tear and potential breakdowns that can halt operations.

Replacing or repairing critical machinery like dust collectors, edge banders, hydraulic presses, or CNC routers could cost tens of thousands of dollars or more if repairs or replacement is necessary.

Equipment breakdown insurance protects your company assets against damage from unexpected events, such as:

• Short circuits, electrical arcing, motor burnout, and boiler explosion, as well as mechanical failure, can occur within any short period.
• Operator error insurance covers both equipment repairs and the loss of income during operational disruption. It helps safeguard the future viability of your business by insuring critical manufacturing equipment against mechanical and electrical breakdowns.

Commercial Auto Coverage is Important Insurance for Furniture Manufacturers

Your company vehicles need protection – from making local deliveries in a box truck or tractor trailer to shipping furniture long distance.

Commercial auto insurance provides that protection by insuring against third-party liability claims and damage caused to their own vehicles.

You may need the following types of insurance as part of your manufacturer insurance policy:

• Third-party liability covers injuries or property damage you or your employees cause when driving for business purposes, and having adequate limits helps protect assets in case of an auto accident.
• Collision Repair Services provide repairs after an accident has taken place on your vehicle.
• Comprehensive Auto Coverage (CAC) provides protection from losses that do not involve collision, such as theft of delivery vans or tractor-trailers.
• Medical Payments/Personal Injury Protection for drivers if they become injured in an accident and pay medical expenses on their behalf.
• Uninsured/underinsured motorist coverage is designed to protect both drivers and vehicles in case they’re involved in an accident with someone who does not carry sufficient insurance.

Properly insuring your small fleet with commercial auto insurance gives you peace of mind as vehicles make deliveries on travel between job sites.

Workers’ Compensation Insurance Is Crucial to the Furniture Manufacturing Industry 

Wood manufacturing involves handling heavy materials, operating dangerous equipment, and overseeing teams of employees – this increases the risk for workplace injuries, such as cuts and even lost fingers or limbs, as well as head traumas.

Workers’ comp insurance is legally mandated in most states and provides lost wages, medical treatment, and long-term support to employees injured on the job. When accidents do happen, having this insurance can help you focus on providing assistance without worrying about litigation costs or medical expenses.

Work with a business insurance broker to secure workers’ comp that complies with state laws.

Workers’ comp is essential in safeguarding both employees and your business from potential regulatory fines or lawsuits that could ensue from workplace injuries.

Commercial Umbrella Insurance for an Extra Layer of Protection

Lawsuits and liability claims may exceed the limits of your primary general liability and auto insurance policies, potentially leaving your assets and properties open to seizure or wage garnishment proceedings.

Add an umbrella liability policy as an extra layer of protection, expanding your total liability coverage to $10 million or higher. 

Higher liability limits help manufacturers protect themselves from bankruptcy should an outstanding claim exceed your underlying policies, providing critical protection during a potential legal battle and helping ensure survival without financial ruin.

Get insurance advice from a reputable insurance company to determine if umbrella coverage makes sense for your risk profile and assets you wish to safeguard, as well as how it fits with existing liability policies.