7 Factors to Consider Before Choosing Logging and Lumbering Insurance

image of loader with load of logs

Across the globe, the lumber industry is continuing to expand at rapid speeds as it's set to expand its market size to over $97 billion in 2020. With this industry continuing to boom, the need for qualified business owners and employees is continuing to grow as well. If you're new to the industry or are looking to improve your company, you may be considering what logging and lumbering insurance to get. 

The truth is, there's no one answer as to which logging and lumbering insurance are the best. Many things should be considered when pondering which logging and lumbering insurance are right for your company! 

7 Things to Consider When Choosing Logging and Lumbering Insurance 

If you're curious as to which insurance is right for you, check out the top 7 things to consider when choosing logging and lumbering insurance. 

1. Most Common Risks for Your Business

One of the biggest things to consider when looking for the perfect insurance is the type of risk your business may face. What risks will your employees or visitors encounter on the worksite? What are the risks of transporting lumber?

These are some of the most important questions to ask yourself when assessing risks or your business. Always take time to assess your companies personal needs which may be different from other companies in the industry. Remember, your business is unique, thus your insurance needs may also be unique! 


One of the best and worst things about the insurance industry is the wide range of pricing. While this range usually means that customers can get a great deal, it also means that a bit of research must be done first. Do your due diligence and compare several options before finding the right price for you.

3. Overall Value for Money 

Another thing to consider when looking at the price of your insurance is if the premiums and deductibles are actually worth the overall coverage.  Some insurance companies may boast low premiums or deductibles but leave you with lackluster coverage.

Other companies may charge premiums and deductibles that are completely unreasonable and only offer minimal coverage in return. Paying attention to the numbers and taking the time to research now, can save you both time and money in the long run. 

4. Choosing the Right Insurance Company

One of the most daunting tasks when it comes to choosing the right insurance is picking the best insurance company. You'll want a company that is reputable and offers high-quality services. You'll also want to ensure that your insurance company is highly communicative and ready to handle any questions or concerns you may have. 

A great insurance company is one that takes the time to get to know you and your business. They'll also make you feel more comfortable knowing your business is protected by high-quality insurance. 

5. Choosing the Right Type of Insurance Coverage 

There are a variety of different types of insurances to choose from. Knowing types of insurance your company may need can be a hassle. These are the top 5 types of insurance used for lumbering and logging companies:

General Liability 

Imagine that a customer visits your worksite and happens to trip and injure themselves on a piece of wood. If the customer should need any medical treatment or decides to sue, general liability insurance would cover this. Other instances that general liability insurance would cover can include any damagers from delivery or offsite work. 

Property Insurance 

Property insurance is absolutely vital for every logging and lumbering company. You've made major investments to ensure that your company has top tier equipment and materials, you'll want to protect these with property insurance. Property insurance would cover the repair and replacement of any company property damages by an accident. 

Flood Insurance 

As the name would suggest, flood insurance protects against any company damages incurred during a flood. This type of insurance is usually not included in other packages and must be added on as an additional insurance package. 

Commercial Auto Insurance 

If you're in the business of transporting lumber, this type of insurance is definitely for you. As a company that owns vehicles, you'll want to ensure that you have the proper insurance to protect your drivers and vehicles. 

Like traditional auto insurance, commercial auto insurance protects company drivers from accident liability and also covers any vehicle damages due to accidents. 

Umbrella Insurance 

This type of insurance covers a variety of odds and ends that your combined other policies may not cover. This insurance can vary greatly on a case by case basis. It's recommended that policyholders speak to their insurance agent directly to see what their umbrella insurance policy covers. 

6. Number of Insured Employees and Size of Company 

Another thing to consider when purchasing logging and lumbering insurance is the size of your company and the number of employees you'll be ensuring. Some companies have special rates for ensuring a specific number of employees. Companies may also offer premium rates if you decide to prepay instead of paying monthly. 

7. The Best Time to Purchase Insurance 

Whether you've been in the industry for decades or are starting a new lumbering company entirely, you may wonder what the best time is to purchase insurance. The best time to purchase insurance is sooner than later! You never know when an accident will happen, having coverage as soon as possible can help keep both you and your company safe.

Ready to Invest in Logging and Lumbering Insurance? 

It's important to remember that these are just 7 of the many factors that go into picking your logging and lumbering insurance. Such a major decision, which could affect the livelihood of your employees and business, should not be taken lightly. 

If you're looking for top their insurance and personalized advice on what kind of coverage is right for you, look no further than the Hummel Group. If you're ready to begin the first step to getting great coverage for your business, get a quote today