THE FORESTRY INDUSTRY
The Forestry Industry
And How To
Alleviate Your Risks
BY TRENT KUJANSUU, GILLONS INSURANCE BROKERS, BUSINESS INSURANCE FORESTRY PROGRAM MANAGER
F
orestry is one of the most
important and valuable
industries in Ontario. The
industry greatly contributes
to the economy and creates
vast employment in a number of
areas including forest management,
roadbuilding, harvesting, transportation,
manufacturing, processing and
reforestation. Companies working in the
field have a number of risk exposures that
they need to alleviate through proactive
measures and insurance protections.
Unfortunately, it can be difficult to find
insurance professionals with industry
specific expertise who can both provide
customized risk management and tailored
insurance coverage.
There are a number of coverages that
should be considered that are unique to
forestry. Some examples include:
•
•
Forest Fire Fighting Expense –
provides coverage in the event your
company is held responsible for
negligently starting a forest fire.
Ice and Muskeg Coverage – typically,
physical damage coverage is excluded
on your contractor equipment if a loss
occurs in low swampy areas or if it
breaks through ice. This endorsement
6
•
can build the coverage back into
the policy. on the risk management side of your
forestry operations such as:
Proper
Physical
Damage
Coverage on Equipment – The
value of equipment typically
decreases over time but in some
circumstances it can appreciate.
Ensuring you review the values
associated with your equipment
is key. •
Process for hiring new drivers and
operators
•
Sample handbooks and policies for
safe operations
•
Sample incident and accident reports
•
Sample maintenance logs
• Rental Reimbursement – if you
experience an insured loss with
a piece of equipment, rental
reimbursement allows you to
rent another piece to ensure your
operation can continue.
• Motor Truck Cargo – Floating
equipment you own or that is
owned by others is very common
in the forestry industry. Motor
Truck Cargo coverage may be
imperative if the equipment
suffers a loss while it is being
transported.
Further, wood
chips and round wood can be
covered for their value as well as
cleanup costs in the event of a
spill.
Further, your insurance adviser
should be able to provide assistance
In light of all of these exposures, Gillons
Insurance Brokers have established a
program specifically designed to assist
forestry companies manage their risk. The
coverage available in the program can be
tailored to each operation addressing their
unique exposures.
Gillons
Insurance
Brokers
have
successfully managed the program for
over 25 years. We frequently seek advice
and insight from our clients with the goal
of continually enhancing our program to
meet the evolving needs of our forestry
clients.
For a comprehensive review of your risk
exposure and insurance, you can connect
with one of our Account Executives at 800-
465-7797 or visit gillons.ca.
-Trent Kujansuu – Business Insurance
Forestry Program Manager