Wood products manufacturing, from an insurance industry perspective, can be a difficult business to insure. This is because of how different the industry is in nature. Assessing the risk of this industry is much different than assessing the risk of an HVAC or a pest control company. For this reason many businesses are forced to purchase coverage from their state provider. This is almost always at a higher rate than if purchasing on the open market. Some agencies partner with many different carriers, not just a select few, and can give you a higher probability of finding a carrier who has an appetite for this industry.
Appetites for certain types of coverage and industries is ever changing for insurance carriers. Some carriers will change their appetite because of a higher than normal amount of losses during a given year. Some times they even change their appetite because of a change in technology that impacts the industry you operate. It may be simply the carrier has found some industries just do not bring in enough profit for them to take the risk.
For this reason, it is extremely important for you to consider partnering with an independent insurance agent who can quote policies from many carriers and not just a select few. It is also important to take extra time to speak long and honestly with your agent about what types of activities your business does and does not partake in. Insurance professionals are in the business of analyzing risk, so it is in their best interest to always assume more risk. If you are in an industry that has a significantly different amount of risk your carrier may be denying you coverage because you are classified improperly. If you take the extra time to let your agent know more information about your business the more likely they are to find you coverage and find it at a better price.
This can impact the wood products industry a lot because of how many different roles because of the different types of businesses that operate in this industry. There are more than ten different classification codes just for workers compensation insurance coverage. Depending on if you are a manufacturer, a distributor or a retailer can have an enormous impact on the amount you pay in premium. Having an open and honest relationship with your insurance agent will help you prevent any and all of these potential problems.
Industry Classes Included in our Wooden Products Programs