24 WESTERN PALLET
coverage, since electrical surges and mechanical failures can happen anytime.
4. Commercial Auto: Coverage Beyond the Yard
If your company vehicles deliver pallets, pick up lumber, or transport crews, commercial auto insurance is a must.
Example: A forklift operator accidentally backs into a customer’s trailer. Your policy covers the damage and potential injury claims.
Recommended Limits: A minimum of $1 million combined single limit — and higher if trucks operate regionally or carry heavy loads.
5. Workers’ Compensation: Caring for the Crew
Pallet work can be physically demanding and involves tools, saws, and forklifts. Workers’ compensation insurance pays for medical care, lost wages, and rehabilitation if an employee is injured on the job.
Example: An employee strains their back lifting pallets or gets cut during repair work. Workers’ comp ensures they receive proper care while protecting your company from lawsuits.
Safety Connection: Insurance is only half the story — a strong safety program keeps employees safe and lowers workers’ comp costs. Regular training on forklift use, fire prevention, lifting, and machine safety can dramatically reduce injuries. Many insurers even offer premium discounts for active safety programs.
6. Umbrella Liability: Extra Protection for Big Risks
An umbrella policy adds an extra layer of coverage beyond your liability and auto limits.
Example: A serious accident leads to a $1.5 million lawsuit, but your general liability policy covers only $1 million. Your umbrella policy can fill that $500,000 gap.
Recommended Limits: Between $1 million and $5 million, depending on the size and risk level of your operations.
7. Business Interruption: Covering Downtime Costs
If your business has to shut down after a fire, storm, or other covered event, business
As more pallet companies adopt digital tools for billing, inventory, and logistics, cyber insurance has become a critical part of any complete risk management plan — especially during expansion when new systems and users are being added.
Building a Complete Safety Net
Think of your insurance program like a pallet itself — every board adds strength and balance. General liability and property insurance protect your operations. Workers’ comp and safety programs protect your people. Equipment breakdown, business interruption, and cyber coverage protect your productivity and data.
Regularly reviewing your coverage with an experienced commercial insurance agent ensures your protection grows along with your company.
With the right insurance plan — and a strong safety culture — your pallet business can stay steady through any challenge and keep building toward long-term success.