Risk & Business Magazine Gillons Insurance Fall 2015 | Page 26

Forestry and Risk Management
New Technology Offers Solutions to Managing Insurance Costs
BY: CHAD CANFIELD, GILLONS INSURANCE

A

s new techniques for safer and more
efficient forestry harvesting emerge,
the cost of the equipment necessary to
operate continues to climb. The increased
cost of equipment certainly is not unique
to the forestry industry but it is one of the
major concerns of contractors. So how
can you protect your major investment?
Comprehensive insurance on high valued
forestry equipment is a necessity as
replacement on many pieces can range
from tens of thousands of dollars to well
over $1,000,000.
A comprehensive insurance program
should include broad form coverage, loss
of use rental reimbursement, business
income coverage, ice and muskeg perils,
forest fire fighting expense as well as
pollution coverage.
Insurance certainly has an important
role in any forestry operation but many
contractors are beginning to become
more proactive rather than reactive
through risk management. These
operations are taking steps to protect
their investment in high value equipment
before a loss occurs.

Technology has allowed forestry
contractors of all sizes to proactively
monitor their equipment to ensure that
it is functioning at optimal performance
as well as giving contractors the ability to
identify any issues before they happen.
Thermal imagers are one of the tools
that are becoming more common at
the job site and are now forming part of
some operation’s regular maintenance
procedures.
Thermal cameras and imagers give the
operator a look into what is happening
with their equipment that may not
visible to the naked eye. They can detect
issues with fuses, electrical connections,
couplings, bearings, belts and more.
The benefits of the early detection are
twofold. First, it can prevent fires on the
equipment. The wood particals and dust
accumulating on equipment such as
wood chippers can create an ideal spot for
combustion. As many forestry operators
know, once a fire is ignited, it can be
difficult to extinguish resulting in the
total loss of their equipment.

Second, the early detection of “hot
spots” can give you insight into a future
breakdown. By identifying these issues
early, it will allow you to repair the issue
before the breakdown or at regularly
scheduled maintenance time. As a result,
the operation will run more efficiently
meaning more production. Of course,
this can greatly impact the company
bottom line.
Thermal imagers and cameras vary
substantially in terms of capacity and
cost. Many have the capacity to detect
temperatures from sub-zero to over
600 degrees Celsius. Some imagers will
even have the ability to conduct the
assessment in video mode allowing the
operator to record voice notes that can
be reviewed at a later time or by other
mechanics. Over time, through multiple
thermal assessments, the operation
will be able to detect changes in the
equipment that may lead to issues.
The cost of many brands range from a
few hundred dollars to several thousand
dollars. A simple Google search will
point you in the direction of all the
makes, models and capacities available
to the consumer. The cost of the thermal
imager may more than pay for itself when
you consider the increased productivity
and the ability to manage insurance
costs.

Chad Canfield  B. Comm, CAIB, CIP, is
Sales Manager of Business Insurance at
Gillons Insurance.

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RISK & BUSINESS MAGAZINETM FALL 2015