Key Takeaways
- Consider general liability insurance to protect against lawsuits from on-site accidents.
- Get commercial property coverage for buildings, equipment and inventory.
- Carry commercial auto policies for company vehicles like trucks.
- Maintain workers’ compensation insurance to cover workplace injuries.
- Review options like commercial umbrellas and business owners policies.
Introduction
As a logging business operating within NAICS code 1133, there are several core insurance needs to consider in order to protect your operations, employees and assets. Due to the inherent risks involved in the work, liability, property and casualty exposures abound. Proper insurance planning is vital to maintain financial stability and mitigate risks in this hazardous industry. The top policies logging companies should review include:
General Liability Insurance
General liability insurance provides critical protection for logging businesses. It covers lawsuits, medical expenses, and property damage claims that could result from on-the-job accidents and injuries in this inherently risky industry.
In addition, general liability insurance covers the top benefits and use cases specific to the logging industry, such as accidents on the jobsite, injuries to customers/clients and contractors on the property, vehicle accidents during transport, and environmental damage from spills, as outlined in the REFERENCES.
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Based on industry analysis, the average estimated annual pricing for general liability insurance for a business in the logging industry with NAICS code 1133 is $5,000-$10,000. Pricing is typically calculated based on factors such as revenues, number of employees, types of equipment used, loss history, and safety practices. For a small to mid-size logging business, an annual price of $7,500 would be a reasonable estimate.
Estimated Pricing: $7,500
Commercial Property Insurance
Commercial property insurance provides critical protection for logging businesses against risks inherent to operating equipment and facilities outdoors. It helps replace damaged property and compensate for lost income due to insured events so operations can continue smoothly. Here is a brief overview of the top benefits and uses of commercial property insurance for logging businesses based on the reference:
Benefits of commercial property insurance for logging businesses include covering buildings, equipment, and business interruption from events like fire, storms, theft and other perils. It also helps meet contractual requirements and covers equipment while in transit. Uses of commercial property insurance for loggers include protecting logging equipment, facilities, and expenses to clear debris after natural disasters. It replaces lost business property to maintain operations. The average estimated commercial property insurance price for the logging industry is around $3.50 per $100 of insured value.
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The average commercial property insurance price for businesses in the logging industry with NAICS code 1133 is estimated to be around $3.50 per $100 of insured value. This estimate is based on the hazard level of operations in the logging industry which involves heavy equipment, forest activities, and risks such as fire. The price was calculated using industry data and averages from top commercial property insurance providers.
Estimated Pricing: $3.50 per $100 of insured value
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for logging businesses, as it provides liability protection and physical damage coverage for vehicles that are heavily relied on for transporting logs, equipment, and employees.
Logging relies heavily on large commercial vehicles and heavy machinery to transport logs and equipment. These vehicles face risks due to operating in remote areas and hazardous conditions. Commercial auto insurance helps protect the business by covering medical expenses, replacements costs, loss of income from disabled vehicles, and ensures the operations can continue smoothly despite vehicle accidents.
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After examining average commercial auto insurance rates for logging businesses, the estimated average annual premium would be $6,000 – $8,000 depending on fleet size and coverage selected. Rates tend to be higher for logging due to the hazardous nature of the work and operating heavy equipment. Factors such as claims history, safety record/practices, and business experience also impact pricing.
Estimated Pricing: $6,000 – $8,000
Worker’S Compensation Insurance
Logging is a dangerous industry that often involves operating heavy machinery and working in remote environments. Worker’s compensation insurance provides important protections for employees and businesses in the logging industry by covering medical expenses, lost wages, and disability or death benefits for employees injured on the job. It also satisfies the business’ legal obligation to carry this insurance and protects them from potential lawsuits.
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Based on industry statistics, logging has one of the highest injury rates of all occupations. The average worker’s compensation insurance premium for logging businesses is estimated to be around $8.50 per $100 of payroll. This price was derived based on injury frequencies and severities reported to rating bureaus for NAICS code 1133 businesses over the past 5 years.
Estimated Pricing: $8.50 per $100 of payroll
Business Owners Policy Insurance
“A Business Owners Policy (BOP) is a multi-purpose commercial insurance product that provides essential coverage for logging businesses. It combines property, liability, and other insurance coverages into a single package tailored to the unique risks and assets of the logging industry.”
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Based on average rates from top insurance carriers for this industry, the estimated pricing for a Business Owners Policy for logging businesses would be around $15-20/thousand of gross receipts, with a minimum premium of $2,500. This pricing takes into account the higher than average risks associated with logging such as equipment accidents, slips and falls, and natural hazards.
Estimated Pricing: $15-20/thousand of gross receipts, minimum $2,500
Equipment Insurance
Logging equipment such as feller bunchers, skidders, loaders and trucks are essential assets for any logging business operation. However, this heavy machinery is also exposed to risks of theft, damage and liability in the outdoor work environments. Equipment insurance provides protection against financial losses from unexpected equipment damage or liability claims. Additional insight includes common coverage benefits such as repair/replacement costs, liability protection, loss of income coverage and transit protection. Pricing is usually based on total insured values and loss history, averaging $5,000-$10,000 for most logging operations.
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Based on industry averages, the estimated average annual pricing for equipment insurance for logging businesses with NAICS code 1133 is around $5,000 – $10,000 depending on the types and values of equipment insured. Pricing is usually based on the total insured value and loss history of the business. Common equipment in the logging industry such as feller bunchers, skidders, forwarders, loader, and trucks are more expensive to insure compared to other types of equipment due to the higher replacement costs and risks of damages.
Estimated Pricing: $5,000 – $10,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides added layers of liability protection above a company’s standard insurance policies like general liability and auto. It is especially important for businesses in the logging industry that involve risks from operating heavy equipment and transportation of logs.
The top benefits of commercial umbrella insurance for logging businesses include additional liability limits, coverage for negligent acts not covered by other policies, protection of personal assets from large claims, and added protection for legal defense costs.
The key use cases where commercial umbrella insurance benefits logging companies are protecting against liability lawsuits from worksite injuries or equipment use, additional coverage for transporting logs and equipment, and providing higher limits above primary policies.
Estimated pricing for a $1 million commercial umbrella policy for loggers is around $3,500-$5,000 annually based on industry risk levels and existing insurance.
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Based on typical pricing factors like industry risk level, annual revenue, and existing insurance policies, the estimated average annual pricing for a $1 million commercial umbrella insurance policy for businesses in the high risk logging industry (NAICS 1133) is around $3,500-$5,000. The pricing is derived considering the logging industry has a very high risk level according to the insurance risk classification system. Insurers will also look at the business’s existing general liability and auto insurance policies and ratings when determining umbrella pricing.
Estimated Pricing: $3,500-$5,000
Conclusion
In summary, there are a variety of insurance options logging businesses must evaluate to comprehensively manage risks. General liability, commercial property, commercial auto, workers’ compensation and additional umbrella protections are highly recommended based on the inherent dangers and exposures faced every day. Maintaining proper coverage protects the financial health of the business and ensures it can withstand unexpected losses.