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36 Pallet C e nt ral • Ma rch -Ap r il 2 0 26 INSURANCE BY PAUL QUANDT, CIC, CFPS, CLCS W ood packaging manufacturers are continually challenged with liability claims in a high-risk environment. e risks are significant on various fronts. Physical hazards like machinery operations and strains due to repetitive tasks can result in workers' compensation claims. Defective products or flawed manufacturing may lead to claims by injured customers or for damaged property. Companies are finding it more difficult to obtain liability insurance with the necessary limits at premiums that won't break the bank. Our data indicates general liability insurance rates are on track to rise some 10% in 2026, with a 4% to 10% increase expected for commercial umbrella and liability rates. e good news? Property insurance rates began to stabilize near the end of 2024. Risk management needs to be a priority in any economic environment. Still, factors ranging from weather extremes and their impacts to the prevalence of outsized "nuclear" verdicts in litigation claims raise the stakes. Businesses will protect their resiliency, finances, and reputations by sharpening their claims management practices. Here are four areas to focus on: 1. Be Prepared For The Worst Among the claims that pose the greatest risks are those involving serious injury, third-party property damage, and regulatory attention. It takes a fast and informed response to minimize damage. is means identifying potential serious risks and having protocols in place for reporting incidents immediately. It's also key to collect critical documentation concerning incidents and monitor how management of them progresses. When the insurer is involved in the response, the financial impact—as well as the organization's reputation—will be better managed. 2. Make Documentation And Reporting A Priority A successful claims process relies on detailed and complete documentation, reported to the carrier in a timely way. is encompasses incident reports, statements, and other supporting documents, all of which should be made accessible and accurate. Done right, this will streamline claims processing and speed up the insurer's decision. 3. Know Your Policy Particulars Liability policies are marked by specific terms, coverage limits, and exclusions; and different policies can have unique conditions. What you don't know can result in unexpected coverage gaps. A risk advisor is invaluable for assessing coverage to ensure it aligns with your business risks. Be aware of these particulars: MEASURES TO BETTER MANAGE LIABILITY CLAIMS 4

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