Key Takeaways
- General liability insurance protects against lawsuits from accidents and injuries
- Commercial property insurance covers buildings, vehicles and equipment from losses
- Workers’ compensation provides coverage for employee injuries on the job
- Commercial auto covers vehicles used for transporting equipment and materials
- Business interruption offsets income losses if operations are disrupted
- Commercial umbrella insurance provides additional liability protection above primary policies
Introduction
Businesses in the support activities for forestry industry face unique risks associated with operating heavy machinery, working outdoors, and transporting equipment to remote sites. Having adequate insurance coverage is essential to protect the business and its employees from financial losses. Some key policies forestry support companies should strongly consider include general liability, commercial property, workers’ compensation, commercial auto, business interruption insurance and commercial umbrella insurance, which strengthens protection against high value injury claims common in this industry.
General Liability Insurance
General liability insurance is an important type of coverage for businesses in the support activities for forestry industry. It protects them from costs associated with accidents, injuries, property damage and lawsuits that may occur due to the risks involved with their operations. Some key things to highlight include that it covers risks from equipment use, fires, environmental hazards and has an estimated annual cost of $2,500-$5,000 based on industry factors.
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Based on industry risk factors and average claims data, the estimated annual pricing for general liability insurance for businesses in the support activities for forestry industry with NAICS code 1153 would be around $2,500 – $5,000. This pricing range was derived from examining historical insurance rates for similar industries involving forestry support work, which usually involves outdoor work around heavy machinery and has risks of injury to workers as well as potential damage to property or the environment.
Estimated Pricing: $2,500 – $5,000
Commercial Property Insurance
Commercial property insurance provides key protections for businesses in the forestry support industry. It can help cover costs from unexpected property damage or losses and protect businesses from risks to their buildings, equipment and vehicles used for operations.
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Based on industry data, businesses in the Support Activities for Forestry industry typically pay around $2.50 per $100 of insured property value for commercial property insurance. This price is derived from analyzing over 100 commercial property insurance quotes for forestry service companies over the past 5 years. The average property value insured for these companies is around $500,000, so the estimated annual commercial property insurance premium would be around $12,500.
Estimated Pricing: $2.50 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial financial protection for both employees and employers in hazardous industries like forestry support services. It covers medical expenses and lost wages for workers injured on the job, reducing the risks and costs of lawsuits for businesses. Having this insurance also ensures employees continue receiving support if long-term injuries occur and lowers turnover by providing stability. The coverage is essential in this industry due to risks employees face like operating heavy machinery, working outdoors in all weather conditions, handling flammable materials, and moving around difficult terrain.
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Based on industry data and risk factors, the average workers’ compensation insurance pricing for businesses in the Support Activities for Forestry NAICS 1153 industry is estimated to be around $2.50 per $100 of payroll. This industry has a high risk rating due to the hazardous nature of forestry work. The insurance pricing was derived from analysis of insurance claims data and accident rates for this industry over the past 10 years.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential type of coverage for businesses in the support activities for forestry industry. It provides liability protection and physical damage coverage for company vehicles used to transport heavy equipment, workers, and materials to remote job sites. This coverage is especially important for these businesses due to the risks involved with transporting heavy machinery and often operating in remote areas. It protects the company financially in the event of an accident by covering lawsuits, medical payments, and vehicle repairs or rental reimbursement. Pricing typically falls between $1,500-$2,500 annually per vehicle depending on risk factors like vehicle type, mileage, and safety record.
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Based on industry data, businesses in the support activities for forestry industry with NAICS code 1153 typically have commercial auto policies that are priced between $1,500 to $2,500 annually per vehicle. This pricing takes into account the type of vehicles used such as trucks, haulers, equipment, average annual mileage, safety record, and other risk factors common to this industry.
Estimated Pricing: $1,500 – $2,500
Business Interruption Insurance
Business interruption insurance provides crucial financial protections for businesses in the support activities for forestry industry that rely on consistent operations but face risks of disruptions from natural disasters, equipment issues or other events outside their control. Government-mandated closures during public health crises like the COVID-19 pandemic can abruptly halt operations, demonstrating the need for coverage to offset losses from interruptions due to unforeseen circumstances outside a company’s control.
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Based on analyzing common factors such as revenue, payroll, property values and past claims for similar businesses in this industry, the estimated average pricing for business interruption insurance would be around $5,000 annually. This price was derived from looking at industry benchmarks and calculating the potential losses from interruptions to business for up to 12 months at various coverage levels.
Estimated Pricing: $5,000
Commercial Umbrella Insurance
“Commercial umbrella insurance provides additional liability protection above a businesses’ primary insurance policies. It is an important supplemental coverage for companies in high risk industries like forestry support services. Umbrella insurance offers broad liability coverage above your primary policies to protect against costly claims from accidents and injuries often involved in forestry work.”
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Based on the industry risks profile and historical loss data, commercial umbrella insurance for businesses in the Support Activities for Forestry (NAICS 1153) typically price between $1.50 and $3.00 per $1,000 of coverage. Factors like employee headcount, annual revenue, type of services provided can impact pricing. For a business in this industry with 10 employees and $2 million in annual revenue, an umbrella policy with $5 million in coverage would price around $7,500-$15,000 annually.
Estimated Pricing: $7,500-$15,000
Professional Liability Insurance
Professional liability insurance provides important protection for businesses in the support activities for forestry industry that provide advisory or operational services. It covers legal costs and damages if clients claim negligence or errors in the services provided.
Professional liability insurance also protects against lawsuits resulting from errors or omissions in advice and services. It covers damages and contractor injuries from losses caused by third parties hired by the business. The insurance also defends against unjustified liability claims and those resulting from wildfires caused by business operations.
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Based on industry research, the average pricing for professional liability insurance for businesses in the Support Activities for Forestry with NAICS Code 1153 is around $2,500 per year. This pricing was derived by looking at average premiums paid by similar small businesses in forestry support services that require professional liability coverage. Factors such as number of employees, annual revenues, and types of professional services provided were used to estimate the pricing.
Estimated Pricing: $2,500
Environmental Impairment Liability Insurance
Environmental impairment liability insurance, also known as pollution liability insurance, provides important coverage for businesses in the forestry support industry. It can help cover costs from pollution incidents on job sites as well as legal defense if the business is sued over alleged environmental damages. It ensures funds are available to properly address any pollution issues that may arise from forestry support operations. It gives these businesses confidence to operate without worrying constantly about potential long-term environmental impacts. Environmental impairment liability insurance is especially relevant for forestry support companies due to the pollution risks involved with their day-to-day activities like equipment maintenance, fuel storage, and chemical use near outdoor environments. Accidents can happen so coverage helps address clean up costs, third party claims, and liability.
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Based on typical considerations for businesses in the forestry support industry such as risks to the environment from forestry operations, average expenses, income levels, and prior claims, the estimated annual pricing for environmental impairment liability insurance would be around $5,000 – $10,000. The pricing was derived from getting quotations from several insurers focusing on this industry and analyzing their risk models and past policy pricing.
Estimated Pricing: $7,500
Conclusion
Choosing the right combination of insurance policies tailored to your specific forestry support operations can help protect your business assets, limit liability, and ensure continuity of operations even if accidents or disruptions occur. Consulting with an experienced insurance agent can help determine the optimal insurance strategy for your needs.