Logging companies work in harsh conditions against forces of nature and alongside dangerous machinery. Some people view this line of work with respect, as the workers put themselves in the face of so many risks to provide essential timber that is processed into the items we use every day. However, if a logging company is not careful, its operations could harm others, the environment, and other people’s property.
Accidents such as these leave the logging company on the hook for fees and expenses related to the mishap and damage to that company’s reputation. Suppose customers or the public find that a logging company has caused harm without trying to remedy the situation.
In that case, they will think less of that company going forward. Logging insurance supports a company’s reputation after incidents by paying out promptly and making the other party whole. How that happens depends on the insurance type and the incident’s nature.
General Liability and Reputational Damage
One of the most important types of insurance coverage a logging company can carry is general liability insurance. Not only is this type of policy mandatory in most states, but it also addresses many of the most common incidents that may befall a logging business over the course of its operations.
General liability insurance covers damage or harm to third parties and their property. This type of accident can garner significant negative publicity; for instance, suppose that a logging company mishandles its timber during transport and accidentally crushes a person’s car.
Perception of the company by both the public and potential clients and collaborators will drop as a result—unless the business uses its insurance to compensate the victim for the cost of their car so it can be replaced. This mitigates most of the reputational damage by showing the logging company as apologetic and invested in doing the right thing.
Inland Marine and Timber Losses
Another way that insurance can ease the reputation damage of accidents is through inland marine insurance. This type of policy covers timber as it travels to its final destination. However, people may look upon the logging company negatively if it loses timber during travel, whether due to driver mistakes, unpredictable accidents such as arson, or other reasons.
The timber may be seen as wasted and consumed as a natural resource for no reason. Inland marine insurance can cover the loss of timber so that a logging company can continue operations and produce wood-based products that everyone needs and uses. This maintains the company’s favorable reputation as a helpful business rather than a wasteful one.
Workers’ Compensation and Workplace Reputation
One of the most essential things a logging company can do to protect its reputation is to protect its workers. Logging is one of the most dangerous industries in the United States, and worker injury is a when not an if. Carrying strong workers’ compensation insurance shows that the logging company cares by providing income during time off work and covering the cost of medical treatment or rehabilitation.
A logging company known to do its utmost to keep employees safe and provided for in the harsh climates and difficult work environments of the forestry industry will have a stronger reputation than one that carries only minimal coverage. This attracts more talent and creates a better image for both collaborators and the public.
Pollution Insurance and the Environment
Perhaps the most important type of insurance to avoid reputational damage is pollution insurance. Logging companies can inadvertently be responsible for significant damage to the environment through accidents such as:
- Oil leaks from heavy machinery
- Gasoline or diesel spills from transport vehicles
- Accidentally harvesting from the wrong land tract or outside the bounds of the assigned tract
A company can suffer heavy reputational losses for damaging the environment in this way. However, pollution insurance can not only cover the cost of any fees associated with these accidents; it can also pay for remediation and restoring the environment as much as possible. This mitigates the harm of pollution damage for the company’s public-facing image.
Protect Your Company’s Reputation With Burton & Company
Logging companies have plenty to consider when protecting their businesses. While insurance coverage is invaluable as a financial resource to prevent unexpected costs and keep the business solvent, it also serves a dual function as one method of mitigating the reputational harm that can come from logging incidents and accidental damage.
To establish that your company is protected in this way as much as possible, work with an insurance agency that focuses on the forestry industry. The professionals at Burton & Company help loggers, sawmills, and other businesses address the risks most salient for their companies. Contact Burton & Company today to learn more.
