Insurance Market Source regularly taps into its network of experts for insight into key trends and developments across the insurance landscape. Steve McQueen, Managing Director, Burns & Wilcox Canada, breaks down the ins and outs of logging and lumbering insurance for logging contractors.
Q: What are the most common risk exposures to logging contractors?
A: Logging contractors’ main exposures are fire, theft and vandalism. The majority of logging and lumbering policies cover these primary risks, but the insured can also elect additional lines that protect from exposures in property, crime, inland marine, environmental impairment, automobile liability and accidental death and dismemberment.
For example, a contractor may be asked to remove trees from one lot, but mistake the location and cut down trees in the wrong place. And since they are working with heavy sawing equipment, the risk for employee injury is quite high. Harvesting equipment is often used for long hours and is particularly susceptible to overheating and oil leaks, which can cause fire and equipment damage. Specialty automobile liability coverage is important too, as contractors operate large, heavy vehicles while carrying full loads of logs on public roadways.
Q: What do logging and lumbering policies cover?
A: Logging and Lumbering policies cover all forms of professional foliage removal on private and public land–from clearing space for development or road construction, to thinning a forest for healthier growth and fire prevention. This includes coverage for building access roads to reach forests as well as the process of removing and shipping lumber for commercial use.
Q: Why should retail brokers and agents work with an experienced wholesale partner on lumbering policies?
A: Not all insurers offer the coverage needed to fully protect your logging contractor clients, but wholesale insurance experts offer a complete range of solutions for logging and lumbering needs. They can offer flexibility to ensure retail brokers and agents are providing their clients with the right coverage, whether clients need lumbering coverage as part of a professional liability package or a stand-alone, separate policy.