The logging and forestry industry has unique needs. As such, its insurance will have to follow suit.
With these specialized risks at hand, logging insurance comes in tailor-made for the industry to save the day.
Keep on reading for our full breakdown of what logging insurance entails. In addition, we'll take a thorough look at the different insurance sub-categories logging and forestry insurance can cover.
Do You Need Logging Insurance?
Before we start our deep dive into logging insurance, let's explore who actually needs a specialized logging insurance policy.
The truth of the matter is regardless of your job title or position: if you work in the logging industry, you should have insurance on hand. This applies to you, whether if you're a business owner or a clear-cutter.
What Are the Main Risks That the Logging Industry Faces?
Even though the logging industry is varied in nature, from logging in a dense forest or hauling logs to the mill, there is a multitude of risks that are common to the industry.
The main risk comes with cutting down trees. Of course, that's the industry's core job. However, during the process of cutting down trees things can go wrong.
For example, a felled tree can accidentally damage someone's property, the person who's cutting it down, or even the equipment that's been used to cut it down.
This is why logging businesses try their best to have a controlled process, where trees won't harm people or buildings on their way down.
In addition to that major risk, there are other risks to keep in mind. Issues like theft, fire, and even vandalism can cost a logging business thousands of dollars in the long run, if not covered by an insurance policy.
Logging Insurance 101: What Should It Cover?
A good insurance policy should always perfectly match the industry it's meant to cover.
When it comes to logging insurance as a whole, you'll find that the insurance will have different types of insurance packages that tackle every single aspect of the forestry industry.
Traditionally, there's general liability insurance that logging businesses can use to protect the majority of their assets when a claim is made due to business operations. But, you'll have to confirm that it covers all the essential parts and parcels of your business operations.
If you're not quite sure which insurance categories you need to have on hand, no worries.
Here are the main types of insurance that you should have if you're operating a logging business.
Logging Equipment Insurance
Nothing can wreak havoc on a logging business more than uninsured equipment. This includes trucks and tractors that are used to transport equipment and timber.
These are items that you need to have a functioning business operation. Therefore, if any unexpected damage occurs, logging equipment insurance can cover the damage.
The faster you replace damaged equipment, the sooner you get your operations back to normal.
In addition, you can specify which items your logging insurance can cover for extra peace of mind. For instance, you can cover your slashers, feller bunches, sliders, and processors.
Now that you have your transportation equipment covered, it's time to tackle the actual material you're moving from point A to point B. That would be your cargo.
Whether you're moving cargo from or to your job site, the cargo is worth a lot of money. If your cargo gets damaged, lost, or even destroyed, it'll cost you even more time and money to get replacements.
However, with cargo insurance, you can prevent it from causing too much damage to your business deadlines and your bottom lines.
Pollution Liability Insurance
When it comes to nature-based industries like logging and forestry, it's almost guaranteed that you'll have to deal with pollution damage at one point or another.
Having a pollution liability insurance will protect your business operations when any spills, accidents, or other substances make their way to your surrounding environment.
The type of liability insurance will cover the cost of the inevitable cleanup.
Workers' Compensation for Logging and Forestry Operations
For this type of insurance, you might already be required to have it on hand, according to your state laws.
Regardless, having workers' compensation is important for businesses that have high probabilities of their employees getting injured on the job. As previously stated, the logging industry definitely counts as high risk.
This insurance will provide peace of mind for your employees, as they know that they'll get compensated if they get hurt. In addition, this will remove the fear of not being able to pay their medical bills for both the employee and their employers.
All of the previous types of insurance are typically catered to businesses. However, that doesn't mean that you shouldn't get separate individual insurance.
Sometimes, business insurance and workers' compensation can only cover so much.
Whether you're a lumberjack, a supervisor, or a heavy equipment operator, getting covered by insurance can provide enormous relief from the monetary burden that can follow an accident.
Of course, every person and their job position can have different needs or risks. Accordingly, you can check out what your insurance options are, or even tailor them to your needs.
Ready to Get Your Insurance Coverage?
We know that the world of insurance can be a bit overwhelming at first. Yet, there is no reason for you to go through an enormous amount of information alone.
Now, you're in a much better place with a well-rounded knowledge of logging insurance and the different types that can fit your job and situation.
However, there is still so much more to learn. You can check out our blog for more information about insurance in multiple industries.