The forestry and logging industry experiences more workplace hazards than nearly any other sector in America. The logging industry alone experienced a fatal injury rate of 98.9 per 100,000 full-time workers in 2023. With these risks, forestry insurance becomes more than just a policy requirement. It protects your business, employees, and livelihood.
Understanding which claims occur most frequently can help you evaluate your current coverage and prepare for potential losses. This guide outlines the most frequent types of claims addressed by forestry insurance policies.
1. Workers’ Compensation Claims
Workers’ compensation claims represent the most significant financial exposure for most forestry businesses. The National Institute for Occupational Safety and Health (NIOSH) documents that logging workers face hazards such as heavy machinery, unpredictable terrain, and severe weather.
OSHA data shows that contact with objects and equipment causes most of the serious injuries in logging operations. Most incidents are caused by falling trees, rolling logs, and operating machinery. Falls on steep or uneven ground also generate frequent claims.
Common injuries include head trauma, broken bones, back injuries, lacerations, and amputations. Workers’ compensation pays for crew members’ medical bills, lost wages, and rehab if necessary. Without this protection, your business may have to pay out of pocket for lawsuits, medical expenses, and regulatory fines.
2. Equipment Damage and Breakdown Claims
Forestry operations depend on specialized equipment, such as skidders, feller bunchers, and log loaders. This equipment operates under harsh conditions, and damage can halt production.
Equipment damage claims typically involve fire damage, theft, collision or rollover incidents, mechanical breakdowns, and damage during transport. Inland marine insurance safeguards your assets while they are transported between job locations or kept in off-site storage. Traditional property insurance usually only covers equipment at a fixed location, leaving mobile forestry tools exposed.
3. Third-Party Property Damage Claims
Whether your crew operates on private or public land, the potential for damaging someone else’s property always exists. General liability insurance provides coverage for claims related to property damage asserted by external parties.
Common claims include felled trees striking buildings, equipment causing erosion, accidental damage to neighboring timber stands, and fire suppression costs after logging activities spark wildfires.
Logging workers often labor in remote, isolated areas where terrain and weather add complexity to every job. General liability coverage helps pay for repairs, legal fees, and settlements.
4. Vehicle and Transportation Claims
Forestry businesses rely heavily on trucks and trailers to haul timber and transport crews. Commercial auto insurance covers incidents involving your vehicles, including repairs to your trucks and responsibility for injuries or property damage that your drivers may cause in an accident.
Transportation-related claims often involve collisions during log hauling, accidents while loading or unloading, damage to logging trucks, injuries to other drivers, and damage to third-party vehicles. OSHA regulations require specific safety measures for vehicles used in logging operations, but accidents still occur regularly. Commercial auto insurance provides financial coverage for vehicle repairs, medical expenses, and legal liabilities.
5. Environmental and Pollution Liability Claims
Heavy machinery uses fuel and oil that can spill or leak, potentially polluting streams, soil, or forests. Pollution liability insurance offers protection in cases where your business is deemed accountable for environmental pollution.
Environmental claims may include oil or fuel spills from equipment, chemical leaks, soil erosion or sediment runoff, water source contamination, and cleanup costs. Standard general liability policies rarely cover pollution-related losses, which makes it essential for forestry contractors to obtain specialized pollution liability coverage.
6. Fire Suppression and Wildfire Claims
Wildfires pose a serious risk to forestry operations. Equipment can spark fires, and logging activities can inadvertently create conditions that allow fires to spread. Fire suppression claims cover the costs associated with extinguishing fires that your operations may have caused.
These claims can include emergency response costs, firefighting expenses, timberland damage, and liability for fires that spread to neighboring properties. Given the increasing frequency and severity of wildfires in forested regions, this coverage has become increasingly important for logging contractors.
Protect Your Business with Burton & Company
Forestry insurance does more than help meet contract requirements or satisfy lenders. It safeguards your business, your team, and your future. Claims occur, even among the most seasoned operators. Having the right insurance helps you manage challenges and sustain your business.
At Burton & Company, we understand the forestry industry. We recognize the risks you encounter and the insurance coverage necessary to protect your operation. Our team has been serving businesses in Virginia for over 100 years, and we bring that experience to every client relationship.
Are you ready to review your forestry insurance coverage? Contact Burton & Company today to discuss your needs and get a customized quote. Reach us online or call (888) 652-1325 to speak with one of our experienced agents.
