Logging equipment is the backbone of any operation; teams would not get far without this valuable machinery, which facilitates timber processing and movement. However, logging equipment does not exist on-site in a vacuum. It must be brought to and from the land tract, exposing it to dangers along the way. The most complete logging insurance blends should include protection for the transportation risks logging equipment faces throughout the job.
Without proper insurance coverage, logging companies could find themselves on the hook for significant costs, from repairs to expensive machinery to delays in timber harvesting and even problems with clearing the tract in the allotted time.
Here are some ways to mitigate transportation risks with logging equipment insurance so your business can avoid unexpected expenses.
Common Transportation Risks for Logging Equipment
En route to their destination, logging machines are vulnerable to numerous risks. The three most common are accidents, theft, and damage. Most equipment takes multiple continuous trips to arrive on-site, exposing it to malicious actors vandalizing or stealing the machinery.
In addition, vehicle collisions, truck toppling, and more can all damage the machinery and cause liability for the company if the machines damage another person’s property or cause harm. Navigating roads with logging equipment in tow makes driving more difficult, leaving drivers more prone to accidents.
Truck accidents pose substantial risk. In addition to the potential repair costs, loggers may face financial consequences from the loss of essential equipment that prevents them from doing their job and needs to be fully replaced. This may also result in operational delays that impact the company’s bottom line and interfere with the timely completion of the project.
Essential Insurance Coverage for Transportation Risks
To protect logging equipment throughout its transportation journey, forestry companies should invest in multiple forms of insurance coverage. Important insurance policies that address transportation risks include:
- General liability insurance – Every logging company should carry general liability insurance, and most opt for policies with at least one million in coverage due to the high-risk nature of forestry work. This type of protection guards the company against the financial consequences of harm to others or their property caused by equipment. While logging equipment is en route to its destination, it is easy to damage property or people accidentally. General liability insurance can pay for medical bills, repair costs, and more for affected parties, and logging companies may have difficulty securing land tracts without it.
- Auto insurance – Depending on the vehicles being used and their purpose, auto insurance can be a smart choice. This coverage protects vehicles involved in collisions, helping the company to recover the cost of repairing or replacing damaged vehicles. It is essential to check that the policy includes coverage for uninsured or underinsured drivers since you cannot control who may be involved in an accident.
- Inland marine insurance – Gaps in coverage from auto insurance can be bridged by inland marine insurance, a type of policy specifically geared toward protecting company property as it moves between locations. If the company’s property insurance does not fully cover machinery in transport, inland marine can provide additional protection.
Preventive Measures to Complement Insurance
In addition to carrying insurance coverage, logging companies can take a proactive approach to reducing the risk of an incident in the first place. This can potentially save the company money in repair costs and avoid the process of filing an insurance claim, but it can also lower premiums.
When an insurance company sees that the business is taking active steps to reduce its risk, it is less likely to cost the insurance company money, and it can lower premiums as a result. Every logging company and its procedures are different, but in general, some steps that companies can take include:
- Loading equipment properly for secure transport
- Utilizing trained drivers with experience
- Choosing secure routes with minimal hazards
- Training staff on what to do in the event of an unexpected change to the route or journey
- Following manufacturer instructions for properly stowing equipment when being transported
Secure Your Logging Equipment With Burton & Company
Without logging equipment, your company might be stuck in place—costing you time, money, and reputation. Maintaining proper insurance coverage can keep the financial impact of accidents off your shoulders while simultaneously preserving business continuity.
The professionals at Burton & Company offer specialized logging equipment insurance that mitigates transportation risks thanks to their industry knowledge and personalized service. Contact Burton & Company for a personalized quote that addresses your business’ most pressing equipment transportation needs without the hassle of paying for insurance coverages you will not use.
