The sawmill industry is one of the most significant contributors to the many products that Americans rely on every day. Without sawmills, people would not have access to furniture, mulch for gardening, and even the wood necessary for building homes or making pallets to transport food. Despite the large contributions that sawmills make to the economy, they face financial risks that could put them out of business without the right sawmill insurance coverage.
Every sawmill operates differently and processes a wide range of materials, but most locations face the same general challenges. The following are some top suggestions for insurance policies that can mitigate the financial damage of many of the most common risks in the sawmill industry.
The Most Common Risks in the Sawmill Industry & Insurance Solutions
According to OSHA, a sawmill remains one of the most hazardous places to work. In addition, the business aspects of sawmill operation can leave individuals exposed to significant financial risk, which is why broad-spectrum insurance coverage is so important. The main threats to sawmills include:
Equipment damage
The work done each day in a sawmill can grind to a complete halt if an important machine malfunctions or breaks down. Even mills that regularly maintain their equipment can still experience unexpected challenges, and for businesses without proper insurance coverage, this can mean negative financial consequences.
For example, if a sawmill’s main lumber processing unit(s) failed, the facility would no longer be able to produce the scheduled output. This could leave the business struggling to meet deadlines, potentially resulting in fees to expedite product shipping later. Slow-downs can also impact the business’ reputation, leading to a loss of clients. Equipment breakdown insurance can help a sawmill reduce the costly consequences of malfunction or damage to its most important machinery.
Worker injury or death
Because of the high risks associated with a sawmill, a high-quality workers’ compensation insurance policy is essential. Some of the most common injuries within sawmills include finger amputations, lacerations, and eye injuries from wooden projectiles and dust. These wounds not only impact a worker’s quality of life but can also slow down processing as employees miss work.
Sawmills should always review the details of a workers’ compensation policy to make sure it covers the injuries that are most common in that facility’s specific line of work or processing. For instance, basic insurance may place restrictions on the types of injuries it will pay for (e.g., it may require that at least two fingers were lost).
Pollution
When sawmills process timber, they may output more than just wood scraps and dust. Sawmills can be responsible for pollution such as oil leaks that impact the environment, leaving them financially liable for the cost of remediation. Pollution insurance can protect a sawmill from the often expensive fees associated with returning the nearby environment to its natural state.
Liability
Sawmill operations present inherent risks, from on-site accidents to product-related claims. Liability insurance provides essential protection by covering legal fees, medical expenses, and settlements in case of third-party injuries, property damage, or defective products. Whether an accident occurs on your property or a customer files a claim due to an issue with your wood products, having comprehensive liability coverage helps safeguard your business from financial losses and legal disputes.
Natural disaster
Most sawmill owners focus on insurance that covers what happens inside their sawmill and overlook what may happen outside of their control. Mother Nature is unpredictable, and a wildfire, flood, or landslide could damage or destroy the facility or the timber it is processing. Property insurance can provide financial compensation for loss of business property, such as building damage, tied to events such as storms.
Asset loss
One of the most financially important elements of a sawmill is the timber. If material is lost or damaged on the way to its destination, such as during a trucking accident or as a result of theft and vandalism, the sawmill may face significant financial losses. Inland marine and cargo insurance can help the business reduce the financial risk of transporting the materials it processes.
Burton & Company Provides the Right Insurance for Your Sawmill
Sawmills are overtly hazardous environments that must be adequately covered. If you are reevaluating insurance protection, be sure to keep the most common perils in mind when selecting policies. The professionals at Burton & Company will help you determine which risks are most notable for your sawmill, which policies make sense for your area of the industry, and what coverage amounts are right for your risks. Contact Burton & Company today for a customized quote.
