Logging is a dangerous business, but not always for the reasons that people think. While injury from equipment, harm from transporting timber, and more are all a significant part of the risk, logging companies also face challenges from accidental fire damage, theft, and various accidents. These types of events can be difficult to insure against since the specifics are unknown until they occur. Logging insurance may or may not cover the losses, depending on the policy coverage that was secured.
The good news is that when used in unison, just a few types of logging insurance coverage can create a broad spectrum of protection. Selecting these policies depends on the business’ budget, size, risk profile, and more. Logging fire, theft, and accident insurance should include a few basic protections.
What Type of Insurance Coverage Do You Need?
Equipment insurance usually covers risks such as fire, theft, and accidents. For example, if a piece of logging machinery is damaged by fire, equipment insurance can help to cover the cost of repairing or fully replacing it.
Similarly, equipment insurance can pay the business’s costs to continue operating if the equipment is stolen or lost in an accident. However, equipment insurance alone might not fully cover all of the risks in this area, making it essential that any logging insurance strategy also includes other types of protection.
Other Insurance Policies That Can Help
Equipment insurance has protection against fire, theft, and accidents, but it alone may not cover specific incidents or damage categories. Other protections that can complete the coverage umbrella include:
Workers’ Compensation
Accidents do not only impact equipment. If a worker is operating a machine and an accident occurs, the worker may be harmed, too. Workers’ compensation insurance can cover medical bills and related expenses until the employee can return to the job. Insurance can compensate the family for their loss and funeral expenses if an employee dies due to a job-related accident.
General Liability
Every logging company should have general liability insurance. This protection can shield the business from bodily injury and property damage should its equipment or employees cause an accident that affects third parties. For instance, employees who accidentally start a fire that damages a land tract, employees who are caught stealing from a third party, or those whose accidents cause harm to other people’s property could all be covered under general liability.
Business interruption
When machinery is damaged or lost to fire, accident, or theft, the logging company could face more losses than just the value of the equipment itself. If business operations cannot continue until the materials are repaired or replaced, business interruption insurance can help. This type of coverage can address interim costs, such as paying to retain employees or cover rental expenses, until the business can begin operating again.
Reducing Risks (and Premiums)
While incidents such as fires may be unpredictable, reducing the risk of harm from them is still possible. The good news is that by doing so, the business not only stands a better chance of coming out unscathed but can also enjoy lower premiums in many cases. Consider:
- Training employees on proper procedure during fires or after accidents
- Installing security cameras on the worksite to identify theft
- Utilizing fire-retardant materials for buildings in which equipment or people are located
- Operating machinery according to manufacturer specifications
Small choices such as these can have a significant impact. Not only do they keep the business’ assets and employees safe, but they also reflect positively on the business from an insurance standpoint. Insurers who see evidence of these preparations may rate the company as a lower risk, resulting in decreased premiums compared to logging businesses that have not invested in these processes.
Get Logging Insurance to Protect Your Business
While logging may be risky, it does not have to come with unreasonable insurance premiums. Thoughtful preparation and a customized mixture of insurance can provide substantial protection without requiring the business to pay for coverage it will not use.
The professionals at Burton & Company can help you determine what insurance is best suited for your business according to your needs, risk profile, and budget. Contact Burton & Company today to receive personalized insurance solutions that protect your company and employees from the challenges that logging companies face.
