Top Insurance Needs for Folding Paperboard Box Manufacturers (NAICS 322212)

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A guide to essential business insurance policies needed to protect folding paperboard box manufacturing companies including general liability, property, workers' compensation, commercial auto and more.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on premises or damages caused by products
  • Property insurance covers damage to buildings, equipment, inventory from hazards like fires and floods
  • Workers’ compensation fulfills legal requirements and covers medical costs and lost wages from on-the-job injuries
  • Commercial auto insurance protects vehicles used for delivery and transportation of goods
  • Equipment breakdown covers repair costs if machinery fails unexpectedly
  • Directors and officers liability insurance protects directors/officers from lawsuits related to their jobs
  • Cyber liability insurance covers costs of data breaches and network security incidents
  • Business interruption insurance replaces lost profits if the business must shut down temporarily
  • Commercial umbrella insurance provides additional liability protection above primary policies

Introduction

As a manufacturer that operates machinery and handles raw materials and finished goods, the folding paperboard box industry faces various risks to business operations and financial stability. Proper insurance is needed to mitigate losses from events outside of a company’s control like accidents, natural disasters, equipment failures and legal liability issues. This guide outlines the top commercial insurance policies folding paperboard box companies should consider.

General Liability Insurance

General liability insurance is an important type of coverage for any business in the folding paperboard box manufacturing industry. It protects the company financially from costly lawsuits in cases where someone is injured on their property or claims the company’s products or services caused property damage.

General liability insurance provides protection from lawsuits related to injuries from products, accidents on the premises, risks during product delivery, and liability if a contractor is hurt while working at the facility. It also covers potential costs from product recalls if issues are discovered. Estimated pricing for general liability insurance for businesses in this industry is around $2.75 to $3.50 per $100 of payroll.

Category List
Benefits
  • Protects your business from third party claims of bodily injury or property damage
  • Covers legal costs if you’re sued by a customer or third party
  • Provides coverage for negligent acts, errors or omissions by employees
  • Protects assets like equipment, property and inventory
  • Ensures your business can keep operating even if a lawsuit is filed against you
  • Covers liabilities from usage of hazardous materials common in manufacturing processes
  • Provides peace of mind in knowing your business is protected financially
Use Cases
  • Protect from lawsuits if a customer claims their product caused property damage or bodily harm
  • Cover costs of defending a lawsuit even if the claims end up being unfounded
  • Protect from lawsuits related to slip and fall or other accidents on company property
  • Cover costs related to recalls if a product is found defective
  • Protect contractors and subcontractors while working on company premises
  • Cover lawsuits related to transportation or delivery of products

Based on typical premium rates, businesses in the folding paperboard box manufacturing industry (NAICS Code: 322212) can expect to pay around $2.75 to $3.50 per $100 of payroll for general liability insurance. This pricing was derived from industry benchmark data that takes into account factors like number of employees, revenue levels, number of claims filed by similar businesses, average claim payout amounts, and risk level associated with operations.

Estimated Pricing: $2.75 – $3.50 per $100 of payroll

Property Insurance

Property insurance provides critical financial protection for folding paperboard box manufacturing businesses by covering damage or loss of buildings, equipment, inventory, and liability from hazards. It helps replace machinery, inventory, and pay for clean up costs after a covered loss so businesses can continue operations. Protection against risks is essential for folding paperboard box manufacturing businesses as their specialized machinery, equipment and inventory are vulnerable to fires, explosions, water damage and other issues common in manufacturing facilities. Insurance provides financial protection against such unforeseen losses and allows owners to focus on running their business instead of potential financial setbacks from property damage or losses.

Category List
Benefits
  • Covers damage or loss of buildings and equipment from hazards like fire, wind, water damage, etc.
  • Replaces inventory, raw materials, and finished goods if damaged
  • Helps pay for debris removal and cleanup costs after a covered loss
  • Protects against liability if a customer or employee is injured on your property
  • Covers extra expenses like temporary relocation if facilities are unusable after a loss
  • Includes property of others in your care, custody or control for liability reasons
  • Specified cause of loss coverage protects against risks like equipment breakdown and mechanical failures
Use Cases
  • Protection against damage or destruction of machinery and equipment like paper cutting, creasing and folding machines
  • Coverage for losses due to fire, explosions, smoke and lightning
  • Reimbursement for damage caused by falling objects like cranes and machinery parts
  • Insurance for losses resulting from water or steam leaks and backups
  • Coverage for theft and vandalism of property
  • Coverage for losses due to riots, civil commotion and malicious damage

Based on industry statistics and average claims, the estimated annual property insurance pricing for a folding paperboard box manufacturing business with NAICS code 322212 is around $3.50 per $100 of insurable value. This price factors in the machinery, equipment, inventory and property that is typical for this industry. It also considers the risk level which is moderate for damage from things like fires or machinery break down issues that are more common in a manufacturing facility.

Estimated Pricing: $3.50 per $100 of insurable value

Workers’ Compensation Insurance

“Workers’ compensation insurance provides important benefits and protections for businesses in the folding paperboard box manufacturing industry. It addresses key risks of on-the-job injuries through medical coverage, wage replacement, and liability protection while ensuring compliance with state laws. Key benefits include compensating employees for injuries, retaining qualified workers, and maintaining productivity. Coverage is also essential to address hazards from machinery, materials, and repetitive motions that could result in injuries requiring medical care and lost time from work.”

Category List
Benefits
  • Provides wage replacement and medical benefits to injured employees
  • Complies with state workers’ compensation laws
  • Limits employer liability in the event of a workplace injury or illness
  • Reduces the costs and disruption of litigation
  • Access to negotiated medical provider discounts can lower costs of claims
  • Insurance carriers handle all claim administration, so employers avoid these additional administrative costs
  • Protects the company’s balance sheet from large losses and settlements
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Cover lost wages if an employee cannot work due to a job-related injury or illness
  • Settle liability if an employee sues the company over a work-related injury or illness
  • Fulfill legal requirements for businesses to carry workers’ comp in many states and jurisdictions

Based on industry data, the average workers’ compensation insurance rate for the folding paperboard box manufacturing industry is $1.75 per $100 of payroll. This rate takes into account factors like the risk of injuries in this manufacturing industry as well as past claims experience. Using the industry average payroll of $2 million per year, the estimated annual premium would be $35,000.

Estimated Pricing: $35,000

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicles used in the operations of a folding paperboard box manufacturing business. It ensures the company and drivers are protected from financial responsibility in the event of an accident. Commercial auto insurance also protects business assets, limits liability for employee accidents, provides coverage for hired and non-owned vehicles, and has an estimated annual cost of $1,200-$1,500 per owned vehicle.

Category List
Benefits
  • Liability protection in case of an at-fault accident
  • Physical damage coverage to repair or replace a vehicle if it’s damaged or stolen
  • Medical payments coverage to pay for injuries to others in an accident regardless of fault
  • Uninsured/underinsured motorist coverage to cover damages from drivers with no insurance or not enough coverage
  • Coverage for hired and non-owned autos used in business operations
  • Additional insured endorsement to protect contractors and customers
Use Cases
  • Covering fleet vehicles used for delivery and transportation of raw materials and finished goods
  • Protecting employees who use personal vehicles for business purposes
  • Insuring non-owned autos in case a customer’s vehicle is damaged while on your premises
  • Providing uninsured/underinsured motorist coverage in case an at-fault driver lacks enough insurance to cover damages

Based on industry data and average vehicles owned by businesses in the folding paperboard box manufacturing industry, the estimated average annual commercial auto insurance pricing would be around $1,200-$1,500 per vehicle. Factors that affect pricing include number of vehicles owned, driver qualifications, safety records, and coverage limits.

Estimated Pricing: $1,200-$1,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides coverage for repairs, replacement costs and lost income due to unexpected equipment failures or breakdowns. It is an essential risk management solution for folding paperboard box manufacturers that rely heavily on machinery in their production processes. Some common equipment that could breakdown includes printing presses, cutting machines, conveyor systems, boilers, air compressors, and refrigeration equipment. Failures of these critical systems could result in major repairs costs or loss of productivity. The top benefits of this insurance include covering repair/replacement costs, lost income, temporary equipment costs, inspection/diagnosis costs, failures from various causes, damage to other property, and power surge or electrical issues. The estimated cost of equipment breakdown insurance for these businesses is around $2.50 per $100 of covered equipment value.

Category List
Benefits
  • Covers repair or replacement costs if equipment breaks down unexpectedly
  • Provides funds to cover lost income if equipment is down for an extended period
  • Protects against additional expenses incurred while repairs are made like hiring temporary equipment
  • Covers costs of inspections and diagnoses to determine cause of breakdown
  • Includes coverage for failures due to design flaws, operator errors or improper maintenance
  • Covers damage to other equipment or property caused by mechanical breakdown
  • Provides coverage for failures due to power surges or electrical issues
Use Cases
  • Breakdown of machinery like printing presses, cutting machines, die cutters that are critical for production
  • Failure or breakdown of boiler equipment that provides steam or heat for manufacturing processes
  • Breakdown of conveyor systems that are used to transport raw materials and finished goods
  • Failure of air compressors, vacuum pumps or other pneumatic equipment used in manufacturing processes
  • Failure of electrical components like transformers, switchgears or backup power systems
  • Breakdown of refrigeration or cooling equipment used in storage areas

Based on industry standards, the average equipment breakdown insurance pricing for folding paperboard box manufacturing businesses (NAICS 322212) is estimated to be around $2.50 per $100 of equipment value. This pricing is derived from considering the type of manufacturing machinery and equipment used in folding paperboard box manufacturing plants, which generally has medium risk levels. The equipment includes machinery for folding, gluing, cutting, etc. Risk factors like age of equipment are also accounted for in determining the final price.

Estimated Pricing: $2.50/100 equipment value

Commercial Umbrella Insurance

Commercial umbrella insurance provides higher liability limits and protection for a broad range of risks beyond general liability for folding paperboard box manufacturing businesses. It helps protect these businesses from potentially catastrophic financial losses due to lawsuits or claims that exceed primary insurance limits. Some key benefits of commercial umbrella insurance for these types of businesses include providing cost-effective protection against risks like product liability and covering legal defense costs if involved in a lawsuit. The estimated average annual pricing is around $2.50 per $100 of coverage based on factors like typical risks and loss histories for these manufacturing industries.

Category List
Benefits
  • Provides additional liability limits above your primary insurance
  • Covers litigation expenses like defense costs if you’re sued
  • Protects personal assets from potential business lawsuits and claims
  • Covers more risks than just general liability, such as product liability
  • Protects against risks not covered under other business insurance policies
  • Provides cost-effective way to obtain higher liability limits
  • Protects against risks not covered under other business insurance policies
Use Cases
  • To provide protection against large liability claims/lawsuits that may exceed standard commercial general liability policy limits
  • To protect assets like property, vehicles and equipment from liability claims
  • To cover legal defense costs if involved in a lawsuit from injuries or damages caused by operations
  • To protect against lawsuits from product defects or failures of folding paperboard boxes
  • To provide additional coverage for on-the-job injuries to employees or visitors on premises

Based on industry statistics and loss history data, the estimated average annual pricing for commercial umbrella insurance for businesses in the folding paperboard box manufacturing industry (NAICS Code: 322212) would be around $2.50 per $100 of coverage. This price is derived from factors such as the typical risks and liabilities involved for these types of manufacturing businesses as well as their overall loss ratios and claims experience over time.

Estimated Pricing: $2.50 per $100 of coverage

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for folding paperboard box manufacturing businesses that experience temporary closures or disruptions due to unforeseen incidents. It replaces lost profits and helps keep operations running until full production can resume. The top benefits of this insurance for this industry include replacing lost income, covering ongoing expenses like rent and payroll, helping avoid bankruptcy after disasters, speeding recovery so businesses can reopen quickly, and maintaining customer relationships during closures. The top uses of the insurance are for risks like fires, equipment failures, natural disasters impacting facilities, supply chain disruptions, utility outages impacting processes, and recent pandemics forcing closures. Estimated annual pricing for this insurance is $5,000-$50,000 based on annual revenue of $5-10 million for these businesses.

Category List
Benefits
  • Replaces lost income if your business must temporarily shut down operations due to property damage
  • Covers expenses like rent and payroll if your business is forced to close
  • Helps your business avoid potential bankruptcy if a disaster prevents you from earning revenue
  • Speeds your recovery after a disruption so you can reopen quickly and minimize losses
  • Provides funds to help you keep your business running if you can’t use your facilities or equipment
  • Allows you to maintain customer relationships while closed so your business can bounce back stronger
  • Protects against additional living expenses if you are displaced from your home or office by a covered event
Use Cases
  • Fire damage to a facility that shuts down production
  • Equipment breakdown that halts operations
  • Natural disasters like flooding, hurricanes or earthquakes
  • Utility outages that impact manufacturing processes
  • Loss of key suppliers that stops incoming materials
  • Pandemic such as COVID-19 that causes temporary closure of facilities

Based on industry statistics, businesses in the Folding Paperboard Box Manufacturing industry typically spend around 0.1-0.5% of their annual revenue on Business Interruption Insurance. Assuming the average annual revenue for a business in this industry is $5-10 million, the estimated price range would be $5,000-$50,000 per year. This pricing covers lost profits and ongoing expenses for up to 6-12 months if the business suffers an interruption.

Estimated Pricing: $5,000-$50,000 per year

Cyber Liability Insurance

Cyber liability insurance covers a range of risks and costs for businesses in the folding paperboard box manufacturing industry. It protects against lawsuits, regulatory fines, network security incidents and data breaches that could damage operations and finance. As manufacturers that collect and store sensitive customer data, companies in this industry face significant risks from cyber attacks and breaches. Cyber insurance can help cover costs of notifying impacted individuals, credit monitoring, legal defenses, fines and business interruption from system outages if an incident occurs.

Category List
Benefits
  • Covers costs of a data breach including legal fees, credit monitoring, public relations services
  • Covers lawsuits and third-party liability if a customer’s data is compromised due to the company’s negligence
  • Covers theft/loss of customer/employee personal data, intellectual property, funds from cyber attacks
  • Reimburses costs to recover and restore lost or corrupted electronic data and systems
  • Provides help from legal experts and IT security professionals in case of cyber attack or data breach
  • Covers loss of income/extended business interruption if systems are offline due to a cyber attack
  • Protects the company’s brand and reputation in the event of a well-publicized attack
  • Provides access to IT security consultants and recommendations to prevent future attacks
Use Cases
  • Data breaches involving theft of customer, employee or vendor personal data
  • Cyber extortion or ransomware events leading to business interruption losses
  • Losses from inadvertent transmission of malicious code
  • Regulatory fines and legal fees from failure to safeguard private information
  • Legal costs and judgments from failure to prevent data breaches

Based on the typical risks and vulnerabilities of businesses in the folding paperboard box manufacturing industry (NAICS Code: 322212), the estimated average annual pricing for a cyber liability insurance policy would be between $2,000 to $5,000. This pricing range takes into account factors such as the industry’s typical revenue size, data sensitivity, reliance on technology infrastructure, and past cyber incident rates. The final price offered can vary depending on a risk assessment of each individual business’ cybersecurity practices and controls.

Estimated Pricing: $2,000 to $5,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides critical protection for directors and officers against personal liability from lawsuits related to their roles and responsibilities in the company. It covers legal defense costs and settlements or judgments if a claim is filed against a director or officer. D&O insurance is especially important for folding paperboard box manufacturers due to risks from regulatory actions, shareholder lawsuits, employee lawsuits, patent or copyright infringement claims, and product liability or environmental lawsuits. The estimated average annual premium for D&O insurance in this industry is between $5,000-7,000 depending on company size and claims history.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit
  • Covers legal fees and settlements if a claim is filed against directors or officers for wrongful acts
  • Covers defense costs even if the allegations against directors or officers are groundless, false or fraudulent
  • Attracts top talent by providing strong liability protection for directors and officers
  • Protects the company’s reputation by defending directors and officers against claims
  • Provides peace of mind for directors and officers to make decisions without fear of personal financial ruin
Use Cases
  • Protect against liability claims from shareholder lawsuits
  • Provide defense coverage for regulatory actions and investigations
  • Cover costs and legal fees from employee lawsuits
  • Cover legal defense costs for copyright, patent or trademark infringement claims
  • Provide liability protection from environmental pollution and contamination lawsuits
  • Mitigate risks from product liability lawsuits if boxes are defective
  • Cover legal costs if OSHA or safety violations result in fines or litigation

Based on analysis of insurance rates for this industry, the estimated average annual premium for Directors And Officers Liability Insurance is around $5,000-7,000 per year. This price range was determined by looking at average premiums paid by businesses in this industry based on factors like annual revenue, number of employees, and claims history.

Estimated Pricing: $5,000-7,000

Conclusion

By having the right insurance program in place tailored to their risks, folding paperboard box manufacturers can feel secure that their business and financial interests are protected. This allows owners and managers to focus on running production efficiently without fears of catastrophic losses bringing operations to a halt. The insurance policies discussed provide essential coverage for common issues faced in this manufacturing industry.

Frequently Asked Questions

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