The forestry and logging business has its own specific needs and requirements when it comes to insurance. The forestry and logging industry is not only one of the top 10 manufacturing employers in 48 states, but it has also been listed as one of the top three most hazardous industries in the recent decade.
With these unique dangers in mind, a well-crafted logging insurance policy can help minimize the impact of these hazards. Continue reading to learn more details about logging insurance specifics. Furthermore, we’ll go through the various insurance subcategories that forestry and logging insurance can cover.
What Are the Most Serious Threats To The Logging Industry?
Despite the fact that the logging industry is diverse in character, ranging from logging in dense forests to bringing logs to the mill, the industry faces a number of dangers.
Cutting down trees poses the greatest danger. Of course, that is the primary function of the industry. However, things can go wrong during the tree-chopping process. A felled tree, for example, can cause harm to someone’s property, the person cutting it down, or even the machinery used to assist. This is why logging companies strive for a controlled procedure in which trees do not injure people or structures when they fall.
However, there are various hazards to consider in addition to the principal one. Theft, fire, and even vandalism can cost a forestry company thousands of dollars over time if they are not protected by insurance.
Does My Company Need Forestry Insurance?
Let’s take a look at who actually requires a specialized forestry insurance policy before we get into the core of it.
The truth is that if you work in the forestry industry, you should have insurance regardless of your job title or position. Whether you’re an owner or a clear-cutter, this applies to you and helps protect your employees and business interests.
What Is Covered With Forestry Insurance?
In the previous 25 years, the number of productive forest plantations has increased by more than 60%, bringing with it a correspondingly large risk. Forestry insurance often covers the loss of trees as a result of fire, lightning, flood, ice, hail, malicious actions, impact, earthquake, and, as an optional coverage, windstorms. The policies come with a number of extra benefits, including:
- Fire fighting
- Mitigation expenses
- Debris removal
- Replanting fees
- Plantation infrastructure
- Claims preparation costs
Fire is by far the most dangerous threat to a forestry owner. When you include not just the loss of the trees, but also salvage charges, debris clearance, the loss of future log yields, and the possible effect on future contracts, the financial losses can reach into the millions. Other concerns that could jeopardize your investment include pests and biological threats. Trees are an important part of the natural ecosystem’s food chain, and many species of flora and fauna rely on them for survival.
Weather is another key risk in the forestry sector. Wind has extremely different loss characteristics than fire as a catastrophic threat. Hurricanes, cyclonic storms, gales, and tornadoes occur in different ways in different nations, with mid to high-latitude countries being most frequently affected.
Other types of overages that you may want to consider are cargo insurance, logging equipment insurance, pollution liability insurance, and workers’ compensation insurance as well.
Are There Any Added Benefits?
The following are some additional benefits to consider when you are selecting the best forestry insurance for your company’s needs:
- The availability of insurance allows some of the risks connected with timberland ownership to be transferred.
- Because the value of your timber asset is insured, it is easier to leverage it.
- The timberland owner may be able to borrow against the timber values to purchase additional acreage.
- The premiums you pay for this insurance coverage may be tax-deductible.
Reach Out To Burton & Company For Your Forestry Insurance Needs
Regardless of what you need to protect, at Burton & Company, we will work with you to come up with a custom solution to safeguard your investments and your forestry business. We are a family-focused company and are a trusted part of the communities we serve. If you have any questions or concerns regarding forestry insurance or the process of how to determine the best needs for your personal forestry business, we are here to help you every step of the way. When you are ready to choose the best forestry insurance options for your company, we can help to get you covered.