Embrace Technology—And Protect It with the Right Insurance
The wooden pallet industry is undergoing a major transformation. From high-tech design tools to automation, data tracking, and smart recycling systems, pallet company owners now have more ways than ever to improve efficiency and grow their businesses. But with these new tools come new risks — making commercial insurance an essential part of any tech-forward operation.
Here’s how technology is reshaping pallet manufacturing and recycling, and how business owners can both benefit from it and protect themselves with proper insurance coverage.
1. Smarter Pallet Design with Engineering Software
Pallet design software, like Pallet Design System (PDS), helps companies build better pallets faster. These tools reduce wood waste, improve safety, and allow custom designs for clients. But software isn’t foolproof — it can crash, be hacked, or lead to errors if data is entered incorrectly.
Insurance Tip: Owners should consider cyber liability insurance if they store customer specs or use cloud-based platforms. It protects against data breaches, ransomware, and business interruption caused by software failure.
2. Faster, Safer Assembly with Automation and Robotics
Automated nailers, saws, and robotic arms make high-volume pallet production faster and more consistent. But these machines are expensive to install and maintain — and any damage or malfunction can bring production to a halt.
Insurance Tip: Equipment breakdown insurance is key here. It covers the cost of repairing or replacing machinery due to mechanical failure, electrical issues, or even operator error. Business interruption insurance can also help recover lost income during downtime.
3. Tracking Pallets with GPS, RFID, and Barcodes
Smart tracking systems help pallet companies recover assets, manage inventory, and improve service. But like all digital systems, they can be vulnerable to loss or cyberattacks.
Insurance Tip: Inland marine insurance can cover GPS and tracking equipment while in transit, and cyber insurance can protect against digital system failures or hacks that could compromise shipment tracking.
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