Key Takeaways
- General liability insurance protects against injury lawsuits and property damage claims.
- Workers’ compensation coverage is legally required and covers on-the-job injuries.
- Commercial auto insurance protects vehicles used for business.
- Equipment insurance covers expensive machinery investments.
- Commercial property insurance protects buildings, equipment and inventory.
Introduction
Logging involves heavy machinery, hazardous conditions, and transportation risks, so business insurance is crucial. This guide explores the top coverages loggers should have in place.
General Liability Insurance
General liability insurance is an important coverage for businesses in the logging industry. It provides protection from lawsuits if someone gets injured on the worksite or if operations accidentally cause property damage or pollution events. Additionally, it can help cover legal defense costs and medical expenses for others in an accident. The estimated average annual cost for general liability insurance for loggers is $2,500. General liability insurance is crucial for loggers due to the risks involved with operating heavy machinery, transporting timber, potential pollution events, and accidental fires.
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Based on industry research and analysis, the estimated average pricing for general liability insurance for businesses in the logging industry with NAICS code 113310 is $2,500 per year. This pricing was derived based on national industry averages considering factors like risks, claims history, and company size.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
“Logging is an inherently dangerous industry that involves operating heavy machinery and working outdoors. Having workers’ compensation insurance is important for logging businesses to protect themselves from financial losses due to on-the-job injuries or illnesses. Workers’ compensation insurance also helps injured employees continue receiving wages while they recover and get necessary medical treatment. It supports return to work programs to help workers regain their skills.”
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After reviewing workers’ compensation insurance rates for logging industry with NAICS code 113310, the estimated average pricing is around $6.50 per $100 of payroll. This pricing is higher than average due to the hazardous nature of logging work which involves tree felling, heavy machinery operation, and other outdoor activities. The pricing was derived based on analysis of insurance filings and claims data specific to NAICS 113310 logging businesses.
Estimated Pricing: $6.50
Commercial Auto Insurance
Commercial auto insurance provides important liability and property protection for logging businesses that rely on commercial vehicles as a core part of their operations. It covers costs associated with vehicle repairs, medical bills, and legal fees should an accident occur while transporting logs, equipment or personnel. Some key types of coverage commercial auto insurance provides for logging businesses include protecting against third-party liability claims if employees are in an accident, covering repairs or replacement of company vehicles involved in wrecks, and including coverage for attached logging equipment like trailers, winches, and more.
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Based on industry data, the average annual premium for commercial auto insurance for logging businesses is $6,000-$10,000 per vehicle. This pricing takes into account the higher risks associated with this industry such as transporting heavy equipment on public roads and some off-road vehicle use. The risks of accidents are averaged into the final price range.
Estimated Pricing: $6,000-$10,000
Equipment Insurance
“Equipment is a significant investment for logging businesses. Proper insurance can help protect this investment and ensure operations continue despite unexpected repairs, damage or theft.”
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Based on industry data, the average annual equipment insurance pricing for logging businesses with NAICS code 113310 is around $8,500. This pricing includes coverage for machinery like chainsaws, bull dozers, skidders, feller bunchers, log loaders, chippers, etc. given their hazardous nature. The pricing was derived by taking the average value of equipment for a typical logging operation ($300,000) and applying an industry standard equipment insurance rate of 2.83%.
Estimated Pricing: $8,500
Commercial Property Insurance
Commercial property insurance provides important protection for logging businesses. It covers expenses from damage to equipment, buildings and liability claims that can occur due to the risks involved in logging operations. Additional coverages like business interruption insurance provide funds to continue operations if property is damaged and non-functional for a period of time. An average annual price for commercial property insurance for logging businesses with NAICS code 113310 is around $7,500 based on industry data, taking into account the hazardous nature of logging work which can damage expensive equipment and increase risks of fires.
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Based on industry data, the average annual price for commercial property insurance for logging businesses with NAICS code 113310 is around $7,500. This price takes into account factors like the hazardous nature of logging work which can damage equipment as well as increase risks of fires. It also considers the large equipment and machinery that logging businesses invest in.
Estimated Pricing: $7,500
Conclusion
Choosing the right insurance portfolio mitigates financial risks for loggers. Prioritizing general liability, workers’ comp, commercial auto, equipment and commercial property insurance helps protect a logging business’s assets, employees and long-term viability.