Woodworking can be a risky business - ensure you have adequate insurance to cover any potential losses

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Insurance can help you deal with loss of earnings and any liabilities

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First Commercial Insurance Brokers works with clients across New Zealand

Find appropriate woodworkers insurance with help from an experienced New Zealand-based broker

Furniture manufacture and woodworking is a high-risk industry which needs careful consideration when it comes to insurance cover. In this sector, insurance may need to cover a wide range of issues and needs to be tailored to your business.
An experienced insurance broker and risk management advisor such as First Commercial Insurance Brokers can carry out a detailed assessment of your business to highlight the risks you face. Then, we’ll deliver you a number of options for insurance policies and advise you on the best options.
To arrange a consultation to discuss your business needs, get in touch.

The risks your insurance might need to cover include machinery breakdown, faulty or defective workmanship and workplace injury

Within a workshop location, there are a number of risks that need to be covered.

Workplace Injury

Workplace injuries are an ever-present risk in woodworking and joinery where complex machinery and tools are being used on a regular basis. ACC does cover some workplace injuries but you may need to cover additional costs. In the event of a serious injury, your business may also suffer if work needs to be shut down due to an investigation.

Fire

With so much wood on hand, fire is always a risk in a workshop or furniture-making premises. You may also be using equipment that produces heat or sparks which can further increase fire risk.

Loss of equipment or products

As well as a fire risk, your woodworking business may also be at risk of loss through theft, machinery breakdown, or other issues. Business interruption insurance can ensure your business expenses are covered during this downtime.

Third-party damage, defective workmanship

Your liability insurance also covers any costs caused by your employees or products causing damage to a third party through faulty or defective workmanship.

Vehicles

If your business uses vehicles for transporting goods or transporting staff to jobs, then consider comprehensive vehicle insurance.
Managing the risks at your woodworking business
Alongside ensuring that you have the right insurance policy, one of the best things you can do is to reduce the risks to your business through everyday good practice. This can include:

Reducing fire risks

  • regularly clean the entire facility by hand
  • ensure you have good dust collection – at source is best through ducts or vacuum hoods on pieces of equipment
  • install a premises-wide extraction system to remove dust from the air and ensure it is regularly cleaned and inspected
  • ensure that your electrical wiring and switchboard are checked regularly
  • ensure health and safety is closely followed for hot work such as welding, grinding, disc cutting, brazing and soldering
  • make sure that flammable materials and liquids are properly stored
You should also have fire extinguishers or hose reels on hand and consider installing a sprinkler system.

Reducing the risk of workplace injury

  • ensure all staff are properly trained on the machinery they will be using
  • provide and ensure staff are wearing appropriate protective equipment such as goggles, ear defenders and dust masks
  • ensure there is a comprehensive first aid kit on site and that employees know how to administer first aid
  • have a recognised channel for employees to raise any health and safety concerns
  • keep the workplace tidy to prevent hazards such as trip or fall hazards from pieces of equipment or wood on the floor
  • regularly inspect and maintain equipment to ensure it is working correctly

Reducing the risk of theft and vandalism

  • invest in high-quality window and door locks or consider restricting access by use of digital locks or fingerprint locks
  • consider installing an alarm which will protect your premises when unoccupied
  • back this with CCTV options or use a monitoring service
  • keep valuable items or cash on site keep them in a high-quality safe that cannot be removed from the premises

Furniture Manufacturing FAQs

What is Machinery Breakdown Insurance?
Machinery Breakdown Insurance covers repair or replacement costs of machinery broken down due to mechanical or electrical failure.
What does Machinery Breakdown Insurance typically cover?
Machinery Breakdown Insurance typically covers repair or replacement costs of machinery, loss of income due to machinery breakdown, and damage to other property caused by machinery breakdown.
How do I know if I need Workmanship Compensation Insurance?
Workmanship Compensation Insurance is required by law in many countries to provide coverage for employee injuries or illnesses that occur on the job.
How much does Workmanship Compensation Insurance typically cost?
The cost of Workmanship Compensation Insurance varies based on factors such as the number of employees, the industry, and the location of the business.

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