Logging is a risky industry that faces many more challenges than other businesses that haul cargo. From fire and vandalism to loss of cargo and severe or even fatal worker injuries, loggers must be prepared for just about anything.
Because of the many unique risks that come with logging, some of the most common types of insurance policies are often lacking in their coverage, with protections that aren’t specific enough to truly benefit someone working in this niche. That’s why logger insurance is so important.
Whether you’re looking for the right insurance for your logging business or you want to upgrade what you already have, here are some of the advantages of logger insurance over other policies to help you with your logger insurance decision.
Logging Equipment Insurance vs. Auto Insurance
Starting out, many logging companies will purchase general auto insurance to cover their many types of equipment and machinery. After all, a truck used to transport logs is an automobile, right? However, auto insurance is often strict in what it does—and does not—cover in terms of size, weight, and intended use.
You may find that your auto insurance actually offers minimal or no protection to your logging equipment, and if something goes wrong, you could be on the hook for the cost of maintenance, repair, or replacement.
Logging equipment insurance, on the other hand, is specifically geared toward your machinery. Trucks or tractor-trailers that transport your logs are covered, as are the tools you use to harvest timber, such as slashers and processors.
Pollution Liability Insurance vs. General Liability Insurance
While it’s smart for any company to carry general liability insurance (and in many cases, it’s required), it would be foolish to think that this single policy covers every type of damage that you may cause as a logger.
If your trucks spill oil or gasoline, for example, you could get in trouble for polluting the environment and find yourself responsible for the cost of remediating the land. That is why loggers should purchase logging-specific pollution liability insurance, which protects against these types of incidents.
Logging Truck Insurance vs. Cargo and Physical Damage Insurance
For most loggers, their most important item is their cargo. It makes sense, then, to purchase cargo insurance to protect that product. However, cargo insurance — like auto insurance — is often limited in its coverage.
While cargo insurance can be helpful, a better strategy is to rely on logging truck insurance. This logging-specific coverage wraps many common challenges into a single product. It covers loss or damage to cargo, medical bills and other liability issues from your logging truck, physical damage to your truck, and more.
Logging truck insurance is a more comprehensive protection plan for the vehicles that the timber sector relies on, and as a result, it tends to be more affordable than purchasing a cargo policy, physical damage policy, and others separately.
Timber Insurance vs. Property Insurance
Timber is the most important resource that a logging company has ownership rights to. If something happens to it, logging companies may find themselves at a significant financial loss.
Unfortunately, timber loss cannot be predicted; acts of God such as fires and tornados may destroy tracts of land, or vandalism could render timber useless. In some cases, another logging company may mistake their work site and begin logging on yours.
In these situations, property insurance by itself is not sufficient. In fact, property insurance can be difficult to secure for land that holds timber for harvest, and so companies will choose to forego this type of coverage entirely.
However, timber insurance offers protection against many of the common mishaps that can result in a loss of timber prior to harvesting. Tree destruction that occurs due to the most natural causes will be covered under this type of policy, but you may need to add a rider for wind damage depending on your insurer.
If timber loss is a particular concern to you, some policies can be broadened to cover additional practices, such as replanting, debris removal, and other services that improve and maintain the health of the timber you rely on.
Get Logging-Specific Insurance Coverage From the Pros
If you are in the logging industry, you know that the risks you face are numerous and not always easy to predict. Securing logging-specific insurance rather than relying on the basic coverage of generalized policies will keep your business safe from financial disaster.
The experts at Burton & Company will help you consider your best logger insurance options and create a mix of coverage that shields your most vulnerable areas. Reach out to learn more or to schedule an appointment to get started.