Why Prince George Forestry Companies Need Customized Insurance

Insurance for Prince George Forestry Businesses

November 7, 2024 / 5 mins read

Forestry, wood products, and wood processing businesses need customized commercial insurance to financially protect them against potential liabilities in their industries.

Without enough business liability insurance, your Prince George forestry business could face financially devastating lawsuits.

A Western Financial Group business insurance broker will get you tailored commercial coverage that uniquely protects your Prince George forestry business.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.

We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Prince George forestry services business’s specific needs.

Prince George forestry industry

Prince George’s forestry history plays a key role in B.C.’s industry development and it has evolved from logging camps to a wood product hub. The University of Northern British Columbia and College of New Caledonia, both in Prince George, have well-known forestry programs.

What is the importance of liability insurance for forestry and wood processing and wood products companies?

Forestry insurance for Prince George forest businesses provides financial protection should you or your employees be named in a lawsuit.

It’s essential to have insurance specifically tailored to risks in your forestry business sector and the equipment you own.

Liability insurance is an essential part of your Prince George forestry services insurance package. Here are the liability coverages that you need to help protect your forestry business from lawsuits.

Commercial general liability insurance

Commercial general liability insurance is essential for your Prince George forestry and wood processing company. If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your business in court, as well as costs to cover damages to compensate third parties.

What kind of risks does CGL insurance cover?

Commercial general liability covers risks such as:

  • Injury to another person who is not your employee, damage to someone’s property, damage to rented property
  • Medical bills if someone is injured, legal and settlement costs of liability lawsuits filed against you.
  • CGL insurance also helps cover the costs of liability lawsuits related to slander and libel.

Professional liability insurance

Professional liability insurance is also essential to protect Prince George forestry businesses against claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.

In the case of a negligence claim, for example, a Prince George forestry company with E&O insurance would have this type of policy pay for some or all of the claim costs.

Pollution liability insurance

It’s not uncommon for Prince George forestry businesses to be exposed to liabilities related to pollution while working at job sites. Pollution liability insurance covers third-party bodily injury and third-party property damage as well as environmental damage resulting from your work, including clean-up costs, civil fines and assessments, and emergency response expenses.

Cyber liability insurance

If you keep sensitive financial information and data belonging to your clients, your Prince George forestry and wood process business could be hacked by cyberthieves. Cyber liability insurance will help protect the firm financially should there be a cyber-attack.

Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.

Commercial umbrella insurance

You may want to consider commercial umbrella insurance for your Prince George forestry business. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.

The protection that umbrella insurance provides applies only to expenses related to liability such as legal fees, court fees, and legal settlements.

What types of businesses need specialized forestry insurance?

  • Forestry and wood products businesses
  • Logging
  • Sawmills and planer mills
  • Pulp and paper mills
  • Wood dimensioning
  • Furniture, cabinet, and moulding manufacturing
  • Wholesalers and building materials retailers

What other types of insurance are needed for Prince George forestry and wood processing companies?

Surety bonds

Your Prince George forestry business may need a surety bond.

Surety bonds involve a three-party agreement between the principal (your forestry business), the obligee (the party that requires the bond such as a government, company, institution), and the surety company (such as an insurance brokerage).

Surety bonds are required in certain industries or for specific projects to ensure completion, compliance, or payment.

A surety bond will pay your customer if your forestry business does not complete a job or obligated task. If work is not completed per agreement, a client can claim the bond and receive compensation for their loss up to the bond’s limit. Once claimed, the paid-out losses are still recoverable from your business.

Commercial property insurance

Whether you rent or own your Prince George business location, commercial property insurance can provide financial coverage for physical loss, such as a fire, or damage to your business property and its contents.

Tools and equipment insurance

This type of insurance provides financial protection for any transportable tools or equipment that your Prince George forestry business uses to complete their work projects.

Tools and Equipment Insurance can provide reimbursement to repair or replace tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.

Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.

Commercial auto insurance

Any vehicles used by your Prince George forestry business need to be covered by commercial auto insurance, including leased or rented vehicles and personal vehicles used by your or your employees for work. Your personal car insurance usually does not cover your work vehicles.

Commercial auto insurance covers medical fees, legal costs, and repair or replacement costs if your company's vehicles are involved in an accident. It also covers theft and vandalism.

Business interruption insurance

This type of insurance supports you when your Prince George forestry and wood processing business can’t operate due to a covered loss.

There are a number of losses that could force your forestry business to shut down. Some examples are:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with these expenses:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

How much does Prince George forestry insurance cost?

The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.

What do I do if I have a claim against my Prince George business?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Here’s an insurance checklist:

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Prince George forestry and wood products company. Our experts are available now to help you navigate the business insurance journey to protect your Prince George business.

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