Pallets made from wood – a renewable and natural resource – can and should be recycled. Most empty pallets, also known as cores, are refurbished or remanufactured for resale. Others are dismantled and their parts used in the production of mulch, biomass fuel, or raw material for particle board. These operations not only support sustainability but also carry unique liability exposures for pallet recyclers and manufacturers.

General Liability Class Code 59985 applies to commercial pallet recycling businesses primarily engaged in the upcycling of wooden pallets and the production of related wood products. This classification is used by insurers to assess risk and determine appropriate insurance coverage for these operations.

Wood Pallet Recycling (Class Code: 59985) Insurance is designed to help safeguard businesses in this industry from third-party claims. Whether a customer trips over loose materials at your facility or a delivery results in property damage, general liability insurance provides essential financial protection.

More importantly, this coverage helps shield your manufacturing or recycling company from costly lawsuits related to product liability, advertising injury, or accidental bodily harm. Pallet recyclers often face operational hazards, including sharp tools, forklift use, and transportation risks tied to logistics and delivery, all of which require thoughtful risk management planning.

In some cases, businesses engaged in pallet repair or custom wood packaging may also need workers compensation insurance for pallet manufacturing and repair to protect against job-site injuries and equipment accidents.

Wood pallet recyclers may share compliance requirements similar to those of pulp mill recycling operations, especially when working with reclaimed wood or secondary materials. Understanding your liability classification code and securing appropriate insurance is vital for long-term business continuity and contract eligibility.