Western Pallet Magazine May 2025 | Page 23

May 2025

4. Automated Repair and Recycling Lines

Automated scanning and repair tools can significantly speed up recycling operations, improving sustainability and reducing labor costs. These machines, however, require skilled technicians and proper maintenance.

Insurance Tip: General liability insurance is essential to protect against accidents involving machinery. If a repaired pallet fails and damages a customer’s product, product liability coverage can also protect the business from legal claims.

5. Managing Operations with Apps and Cloud-Based Software

Apps and platforms now help pallet companies track pallet counts, schedule logistics, and issue invoices — all in real time. But the more a company depends on digital tools, the more it must plan for potential disruptions.

Insurance Tip: Commercial property insurance should include data recovery options, and business interruption coverage can help keep the company afloat if software failures impact operations.

6. Heat Treatment Technology for Global Compliance

Heat-treated pallets are required for international shipping, and automated heat chambers ensure each load meets ISPM-15 standards. These systems rely on precision and recordkeeping to pass audits and meet client expectations.

Insurance Tip: If a pallet shipment is rejected due to improper treatment or missing compliance stamps, errors and omissions (E&O) insurance can help cover legal or financial damages. Equipment insurance is also important to protect heat chamber machinery.

7. Don’t Overlook Employee Safety and Liability

As companies introduce automation and complex systems, employee training and safety remain critical. Injuries can still occur, especially when working around machines, saws, or loading docks.

Insurance Tip: Workers' compensation insurance is required in most states and provides protection for both employees and the business in case of injury. It’s also smart to review coverage as operations evolve—especially when introducing robotics or new processes.

Conclusion: Grow with Technology, Protect with Insurance

Technology gives pallet company owners the tools to build smarter, recycle faster, and run leaner. But it also introduces new risks — from machine failure and cyberattacks to legal issues and safety concerns. That’s why investing in commercial insurance is just as important as investing in technology.

With the right coverage in place, owners can embrace innovation with confidence, knowing their people, property, and progress are protected.

WPM