Understanding Furniture Maker Insurance
With Canada being the eighth-largest furniture exporter in the world, furniture makers and furniture manufacturers come in all shapes and sizes across the Great White North. From single carpenters to industrial furniture business owners, one thing they all have in common is the need to protect their furniture-making business from falling apart due to a lawsuit or natural disaster. Furniture manufacturer insurance, like the furniture you make, can be customized to fit any sized furniture-making business and provide it with the precise protection it needs.
Who is Furniture Maker Insurance For?
Woodworkers and other custom furniture designers and cabinet makers, office furniture manufacturers (including fixtures) and many more. Some of the furniture manufacturer insurance coverage include:
- Furniture and Related Product Manufacturing
- Household and Institutional Furniture and Kitchen Cabinet Makers
- Other Furniture-Related Product Manufacturing
Risk Management in the Furniture Manufacturing Industry
The following are risk-management protocols recommended by Wood Magazine to help reduce the risk of fire, bodily injury, property damages, general liability and other hazards associated with woodworking and furniture making business involving other materials:
- Ground all electrical equipment and buildings.
- Don’t let anyone smoke in your shop.
- Keep a clean shop. Janitorial services help.
- Spray or paint in an appropriate booth or have it done by a subcontractor.
- Use dust-collection equipment.
- Store flammable and hazardous materials in locked cabinets away from sources of combustion. Keep paperwork, such as receipts from licensed hazardous waste haulers or dumps, to prove you dispose of hazardous materials properly.
- Keep your inventory of expensive woods to a minimum. If possible, store wood and other flammable materials in a building separate from the workshop, just in case of fire.
- Reduce your liability by keeping customers out of your shop. Do business in a separate room.
How Furniture Manufacturers Insurance Keeps You Protected
Depending on the size and scope of your furniture making operations, you will likely need some level of coverage from the following insurance policies that are generally recommended for a furniture maker policy package.
Commercial General Liability Insurance which is a standard commercial insurance liability coverage and can cover your legal fees for lawsuits alleging personal injury, property damage, libel/slander and false advertising. A CGL insurance policy for furniture makers can also include Product Liability Insurance for legal claims that your furniture caused bodily injury or property damage. Remember that lawsuits don’t need to have any merit to cost you money to defend.
Pollution Liability Insurance which can provide your furniture making business with coverage for cleanup costs, fines and legal expenses related to spills, hazardous waste disposal as a result of an onsite pollution event or migration of pollutants from other sources.
Accounts Receivable Insurance can help protect your furniture making business from losses due to uncollectable accounts. We also recommend this coverage for Canadian furniture manufacturers who export their wood products outside of Canada to protect them from losses due to political or other unrest in foreign countries.
Property Insurance provides building and content protection for assets including tools, equipment, machinery, supplies, etc., in case of perils such as fires, flood damage, windstorms, sewage backups and more. This can also cover tools and equipment in transit and at job sites. You may also want your furniture business insurance to include coverage for:
- Business Interruption which reimburses you for lost income due to an insured peril; and
- Extra Expense for the added costs to set up a temporary furniture manufacturing plant after an insured peril.
Boiler & Machinery Insurance / Equipment Breakdown Insurance provides coverage for the repair and replacement costs associated with machinery and equipment breakdown due to perils like electrical arching and power surges.
Cargo Insurance which provides your furniture shipments with end-to-end protection from loss or damage, stock throughput risks and supply chain / trade disruptions, among several other risks that come with shipping furniture.
Commercial Auto Insurance / Commercial Vehicle Insurance whether you own a single van or a fleet of work vehicles, they must have the proper insurance coverage under Canadian law. Commercial auto insurance provides protection for your furniture making business’s liability in case of an accident during the course of business.
Why Choose ALIGNED to Assemble Your Furniture Maker Insurance Coverage?
Simply put, we save you time, money and the hassle of shopping around for the best rates. Commercial insurance is our specialty – we know how to ensure that your furniture-making business is fully protected based on its specific needs. When you choose ALIGNED, you get an advocate who specializes in commercial insurance programs searching through Canada’s top insurance companies to get you comprehensive furniture manufacturing insurance that covers your liability risks at affordable rates.
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