Each year, the logging industry occupies one of the top positions as the statistical winner for the most dangerous profession in the U.S. This is because more accidents are leading to injuries and fatalities in logging than almost any other industry today.

While logging injuries are a serious concern for this industry, there are other risks that those in the industry must be aware of. When it comes to logging insurance knowing what is needed and the risks that are present is the best way to ensure you are fully protected.

Logging Industry History

In the 19th century, there were few insurance companies providing policies for lumbermen. This is because many of the lumberyard owners believed that the stock-held insurance companies did not understand the industry and were overcharging for coverage or not offering coverage at all.

Also, these insurance companies didn’t have a huge understanding of challenges or risks specific to lumber-related operations and the long-term focus that was necessary to provide casualty and property insurance coverage for the related risks.

This was when the mutual lumber insurance niche was formed and, through the years, grew to serve several industries including woodworking, building materials, and the lumber sectors.

While a lot has changed, the main issues remain when it comes to insuring the lumber and logging industry. Industry expertise and proactive loss prevention are still critical when it comes to insuring businesses operating in the lumber niche.

Significant Risks and Insurance Needs in the Lumber and Logging Industries

Some of the most serious risks in this industry include catastrophic fires, slips and falls, and loading and unloading accidents. However, there are also commercial auto exposures in this industry, which is now more of a concern than it was in the past.

Get to know more about the specific risks in this industry below.

Loss Related Issues

Business owners and insurers must focus on safety to maintain sustainable and long-term profitability. In the logging industry, some of the loss-prevention recommendations are process-oriented. They include the creation of maintenance checklists and logs that don’t require a business owner to make any capital investment.

For example, to prevent fires, the logging industry needs to create and implement a written safety plan to address:

• Combustible dust that gathers on surfaces
• Electrical maintenance to prevent electrical system failure
• Machinery preventive maintenance to prevent equipment from breaking down
• Emergency response plans including fire department visits annually
• Hot work permit programs to prevent fire during hot-work conditions
• Disaster recovery program

Implementing these proactive plans helps reduce the risk that insurance companies take when providing coverage for a lumber or logging company.

Commercial Auto Concerns

Commercial auto losses are another risk in the lumber and logging industry. Businesses can work with their insurers to implement a fleet safety program that is documented and actionable.

The program should include drug screening, background checks, road testing, and physical exams for all drivers. Continual monitoring should also be enacted to ensure continued compliance.

Checklists and guidelines will also have an essential role in preventing slip and fall issues within this industry.

Understanding the Risks of the Logging and Lumber Industries

The risks included in this industry face are diverse. Insurers who specialize in this niche can work with business owners to help reduce risk exposure.

Just like in the 19th century, there are some companies that provide insurance for those working in this segment, but many don’t specialize in the industry. Most agencies come and go from the industry due to the nature of the losses and risks present.

What Do Typical Logging and Lumber Insurance Policies Cover?

The policies available today cover an array of risks that those in this industry face. Some of the most common coverage options include:

• Foliage removal on public and private property
• Clearing areas for road development or construction
• Thinning forests to encourage healthier growth
• Fire prevention

The coverage is also in place for building access roads to reach a forest, along with the removal and shipping of the lumber harvested for commercial purposes.

Safety Tips for the Logging and Lumber Industry

Insurance companies want to ensure that those operating in the industry are taking steps to minimize risks and losses. To do this, some tips may be needed.

Implement the Required Training Programs to Ensure Safety

Provide all workers with the training programs required by OSHA and present safety information to workers regularly. The training program created needs to reflect the current industry's way of thinking related to safety approaches in the logging industry.

Create Work Areas That are Not Adjacent to an Occupied Area

Another effective way to reduce logging accidents and risks is by keeping areas where cutting is being done segregated from the non-logging areas. In fact, OSHA mandates that areas are created to ensure trees are unable to fall into a work area occupied by non-loggers.

Logging Insurance Protects You, Your Workers and Your Business

Purchasing the right logging and lumber insurance for your business will protect you, your business, and your workers from risk. If an accident does occur, you can feel confident the logging insurance you have purchased will provide the coverage needed for the situation.

If you need to purchase logging insurance, or have questions about the coverage that you need, contact us. Our team can help ensure you get the coverage needed and that you get this coverage for a price that works with your budget.

From sleep deprivation to cell phone usage behind the wheel, the causes of truck-related accidents are growing with every passing year. This has resulted in blockbuster payouts. These high payouts have caused many of the major commercial fleet insurers to exit this market.

One of the most high profile incidents was when a Wal-Mart truck that hit the limo of Tracy Morgan in 2014, resulting in a six-vehicle pile-up, killing one and injuring several others.

While this industry has its fair share of risk, it's still crucial to understand that commercial trucking has specific insurance needs. Knowing what the risks are and the particular insurance needs are the best way to ensure you're prepared and protected if an accident occurs.

If you're ready to dive in and learn more about the risks and challenges in the trucking and transportation industry, keep reading.

What Is Commercial Truck Insurance?

This is a type of auto insurance specifically designed to meet the needs of the trucking industry. General commercial truck policies will cover trucks if an accident occurs. Comprehensive and collision coverage includes most of the damages that are caused by several perils.

You can also opt for specialized commercial truck insurance for you or your fleet. This provides coverage for other perils along with specific liability issues. This is believed to be an affordable way to protect your investment as you're hauling time-sensitive or valuable materials from point A to point B.

Along with the primary and specialized coverage, you can also add non-trucking options to your insurance policy. For example, non-trucking liability coverage protects against incidents if a truck is not holding cargo. Another option is occupational accident coverage, which provides protection for drivers if accident dismemberment or death occurs.

Common Risks in the Commercial Trucking Industry

When you understand the potential risks in the commercial trucking industry, you can also better understand the need for quality and adequate trucking insurance.

Some of the most common risks in this industry include:

Driver Shortages

The commercial trucking industry is facing a serious driver shortage. In fact, it's predicted the deficit will more than double in the coming decade. This hurts the industry's ability to handle the needs caused by growing load deliveries.

This is a problem that is expected to grow in severity because of the parallel trend of high driver turnover rates. This high rate has added to the problem of reduced performance consistency and the artificial demand for experienced drivers.

Drivers without much experience are considered “higher risk” than those who have logged hundreds of hours on the road. This increases the risk of this industry and makes the need for proper insurance more essential.

Congestion and Parking Issues

Approximately 84% of drivers surveyed recently admitted to parking in an illegal or unauthorized area at least one time per week. This is a trend that is even higher in more congested regions and cities because big rig parking is much harder to find.

The fact is, the more time it takes a truck driver to arrive at their destination, the more money it costs them. Therefore, they are willing to risk parking in these areas.

The problem is one related to claims exposure. Drivers are adding risk as they makeup time by parking illegally or speeding to help avoid violating the maximum hours of service regulations.

Crash Behavior Prediction

Certain behaviors can be used to predict crash risk. This presents some value to insurers, rating professionals, and underwriters. With an understanding of what may cause risk, it is possible to look at a driver's history and determine if they are "high risk" or not.

New technologies, such as connected telematics and vehicles, motor vehicle reports, driver monitoring tools, and other products, are now available and can be used by insurers to detail vehicle and driver histories.

With these tools in place, it's possible to assess and to predict the potential risk of accidents, which helps underwriters’ better rate and price policies.

Specific truck driving behaviors are used for predicting things like the possibility of future crash involvement. Some of the behaviors include traffic violations, accidents, and convictions.

The Correlation Between the Risks and the Challenges in the Trucking Industry

There is some support between the correlations between the challenges the commercial trucking industry is facing, and the exposures and risks faced by the commercial auto industry. Right now, many industry experts are searching for solutions to the driver shortage issue, including the use of younger drivers to help fill in the gaps.

Also, operational costs, which affect the way trucking companies compensate their drivers and stay profitable, are a key area of discussion. Regulations and rules by the various safety organizations and the government affect aspects like driver rest periods and hours of service. There are also general rules for short and long hauls, which are constantly being examined and reviewed for changes that may cut costs while maintaining driver safety.

Do You Have the Proper Protection?

When it comes to insurance needs for commercial trucking, knowing the risks and challenges the industry faces is the best way to know what protections you need in place. The information here provides you with a basic overview of what type of insurance protections are needed.

Do you want more information about commercial truck insurance? Do you have questions about the policies that would be right for you or your fleet? If so, contact us.

Our team can help you with your insurance needs and ensure you have the coverage and protection needed. Our goal is to help you reduce your liability while staying safe and keeping others safe.