Any forestry business must carefully consider how to secure contracts consistently and keep their equipment in good repair and the best options for protecting their investments in their team, machinery, and projects.
For most, this comes in the form of a comprehensive blend of insurance policies ranging from forestry equipment insurance to general liability protection. However, understanding which policies are relevant to your niche in the industry can be confusing.
Not all companies need all types of insurance, but accidentally overlooking a policy can spell financial disaster if something goes wrong. As a baseline, forestry businesses need to ensure they carry appropriate liability insurance. Liability protection goes far beyond simple general liability coverage.
Here is what forestry companies need to know to make an informed choice.
What To Know About Forestry Liability Insurance
Liability insurance, as an overarching concept, protects a business from the potential financial and legal ramifications of mistakes that affect other parties. In general, liability insurance addresses mistakes, damage, and different kinds of harm caused to a third party or by the business.
However, each forestry liability insurance policy is unique, so be sure to read all of the details before committing to a policy. An industry expert can help you identify which important coverages may be missing and either add them as riders or choose a complementary policy to address the gap.
Core Coverage of Liability Insurance for Forestry Businesses
Liability insurance comes in many forms. The types of protection that are most relevant for forestry businesses include:
General Liability Insurance For the Forestry Industry
Most businesses will not be permitted to conduct operations if they do not demonstrate a minimum level of general liability protection. This policy covers the damage a forestry business can do to others and their property. For instance, suppose a logging company is working on a tract of land near a rural road.
One of their heavy machines slides down the side of a steep embankment and lands on the road as a car passes, shattering the windshield and crumpling the hood. General liability insurance would pay for repairing this third party’s property (the vehicle) and any related medical bills if injured.
Environmental Liability Insurance For the Forestry Industry
Forestry companies often work in remote natural environments, making them especially prone to pollution issues. From accidental gas or diesel spills to oil leaking from heavy machinery, a company can impact the environment in many ways. Should it cause substantial harm, environmental liability insurance can help cover the cost of remediating the area.
Business Interruption Insurance For the Forestry Industry
Business interruption coverage complements many types of forestry liability insurance. While this type of protection will not compensate for the costs of a problematic situation, such as a wildfire damaging company equipment, its role is to address the profit losses a business sustains during these times.
If the company deals with an issue, such as equipment malfunction, natural disasters, and other reasons, the business may temporarily close. This coverage can help to address the company’s fixed expenses, such as rent.
Workers’ Compensation Insurance For the Forestry Industry
When a worker employed by a forestry company is injured on the job, the business may be liable for their medical costs and other expenses. Workers’ compensation insurance can address these financial challenges and is mandatory in many states for a company to acquire the proper permits to begin work.
Suppose an employee is hurt while performing a task related to their role in the company. In that case, workers’ compensation insurance can pay for their immediate medical care, such as a visit to the emergency room, as well as rehabilitation and long-term recovery associated with the accident.
Workers’ compensation will compensate employees for the time they take off work to recover. If an employee is killed doing forestry work—which is more likely in this industry than any other in the US—workers’ compensation protection can pay their families for the next steps, such as funeral costs.
Get The Forestry Equipment Insurance You Need with Burton & Company
Forestry companies must contend with a wide range of severe hazards and risks not present in most other industries. Investing in a broad spectrum of liability insurance and other protections is wise to combat the financial catastrophes that may await.
The experts at Burton & Company can help your business identify its most significant risks and how to address them within the constraints of your budget. Contact Burton & Company to explore our customized insurance solutions to tailor coverage to your business’ most significant vulnerabilities.
