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Sawmills And Planing Mills Insurance Policy Information

Sawmills And Planing Mills Insurance

Sawmills And Planing Mills Insurance. Sawmills, also known as lumber mills, covert logs into lumber (planks and beams). Beginning with their raw products, trees, their activities comprise steps ranging from felling to cutting using head rigs.

Planing mills represent the next stage in the lumber processing industry - and these companies cut lumber to predetermined sizes while also smoothing it.

Sawmills and planing mills convert logs into dimension lumber, wood siding, shakes, shingles, and wood chips. Logs are received from suppliers. After the bark is removed, the logs are mounted on a carriage and rough cut into boards of varying lengths and widths.

Some boards are squared on an edger and given a smooth finish on a planer. The lumber is then seasoned (dried to required moisture content), either in a kiln or in the yard.

Although these fields of industry have existed since before the industrial revolution, modern sawmills and planing mills are often massive operations that rely on computer-guided technology to process colossal quantities of lumber.

While companies within the logging industry are engaged in a business for which there will always be a demand, they are also vulnerable to a wide variety of risks.

This is why it is essential to invest in outstanding insurance coverage that protects your company from the financial fallout of major perils. To discover what types of sawmills and planing mills insurance may be needed, keep reading.

Sawmills and planing mills insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked sawmill and planing mill insurance questions:

What Is Sawmills And Planing Mills Insurance?

Sawmills and Planing Mills Insurance is a type of insurance specifically designed for businesses in the sawmill and planing mill industries.

It provides coverage for a wide range of potential risks faced by these businesses, such as property damage, liability claims, business interruption, and worker's compensation. The insurance is tailored to the specific needs of sawmills and planing mills, taking into consideration the type of equipment used, the size and location of the business, and other relevant factors.

It helps protect the business against financial loss and provides peace of mind for the owners and employees.

How Much Does Sawmills And Planing Mills Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small sawmills and planing mills ranges from $57 to $79 per month based on location, size, revenue, claims history and more.

Why Do Sawmills And Planing Mills Need Insurance?

Insurance For Manufacturers

Risk is an integral and unavoidable part of owning and operating any business. Those who own and operate sawmills or planing mills have to contend with the very same risks that can impact any commercial venture, but they also have to consider industry-specific perils.

While some unforeseen circumstances can be handled in-house, others are so devastating that they would, without solid insurance coverage, lead to bankruptcy.

Examples of major perils that no company can completely prevent are theft, vandalism, and acts of nature such as earthquakes, hurricanes, serious floods, or wildfires, which can be particularly devastating within the lumber industry.

The breakdown of essential industrial equipment is also a threat. Without the right insurance, it would result in repair or replacement costs as well as costly production interruptions.

T logging and lumber processing industry is also one of the most hazardous for workers. Should an employee suffer an accident while operating heavy machinery, sawmills and planing mills can be held responsible for the resulting - frequently significant - costs.

The same holds true in the event that a third party is injured while on your property, or if your company's activities inadvertently cause damage to someone else's property.

While this is by no means a complete list of the hazards sawmills and planing mills have to consider, these risks do explain why it is so important to invest in sawmills and planing mills insurance coverage.

A company that is properly insured is able to recover from unforeseen circumstances that would otherwise force them to close their businesses.

What Type Of Insurance Do Sawmills And Planing Mills Need?

The exact scope and size of your operations, the terrain and climate in the vicinity of your property, the value of your industrial equipment, and your number of employees are just some factors that determine the precise nature of your insurance needs.

Because a tailor-made insurance plan will always serve your business best, it is vital to consult a commercial insurance agent.

However, some of the types of sawmills and planing mills insurance needed include:

  • Commercial Property: This type of insurance is designed to protect your financial interests in the event that unforeseen circumstances such as theft, vandalism, and acts of nature damage your property. It covers not only your physical building, but also outdoor assets, raw materials (such as logs), and industrial equipment.
  • General Liability: Should a third party file a lawsuit alleging that your company caused them physical injury or property damage, this general type of sawmills and planing mills insurance will help to cover the legal fees and settlement costs that may ensue.
  • Product Liability: Sawmills and planing mills may also wish to consider product liability insurance, which covers costs relating to liability claims directly pertaining to your finished products.
  • Workers' Compensation: Employees can sustain workplace injuries or occupational illnesses in any industry, but lumber processing companies have a higher risk than many. Workers' compensation insurance, which covers injured employees' medical bills as well as wages lost to related work absences, is therefore essential. In the worst case, this type of workers comp covers death benefits as well.

Because these important examples of sawmills and planing mills insurance policies for firms in this industry may not fully meet an individual company's needs, you are advised to discuss your risk profile with a competent commercial insurance broker.

Sawmills And Planing Mills' Risks & Exposures


Premises liability exposure is normally low as access by visitors is limited. If tours are given, visitors may be injured by slips, trips, falls, or flying debris. The yard storage of logs and lumber may create an attractive nuisance hazard.

The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Dust, fire or explosion, fumes, and noise may cause damage to adjacent properties.

Products liability exposure is low and results primarily from the improper grading of the lumber.

Environmental impairment exposures may be significant due to possible contamination of ground, air, or water from the waste generated by the lumbering and sawing process. Storage and disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposure is very high due to the heavy lifting of logs and the cutting and sawing that is necessary to strip the bark and cut the wood. Injuries from production machinery are common, as are cuts, slips, trips, falls, foreign objects in the eye due to flying wood chips and dust, hearing impairment from noise, and back injuries from lifting.

There should be safety training and protective equipment. Amputations can occur from working with saws. Workers can be crushed by large logs and finished products. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.

Because repetitive motion injuries are a concern, workstations should be ergonomically designed. Drivers of forklifts and vehicles may be injured in accidents.

Property exposure consists of an office, shop, warehouse, or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating, and cooling equipment, overheating of production machinery, and explosions from the build-up of sawdust in the cutting and sanding process.

The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate scrap disposal procedures.

Wood is highly combustible and susceptible to damage by fire, smoke, and water. Flammables such as lubricants and solvents for machine operation must be adequately separated and stored away from combustibles. Business income and extra expense exposures can be high if a lengthy amount of time is required to restore operations.

Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and indirect.

Crime exposure comes from employee dishonesty and theft, especially if there are exotic woods. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.

There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), contractors' equipment, goods in transit, and valuable papers and records for customers' and suppliers' information. The major perils are fire, water damage, theft, collision and overturn.

Business auto exposure is high as most lumberyards transport raw materials, finished products, or both. Large, heavy vehicles carrying logs present a high potential for loss should collision and overturn occur, or should the load spill onto a public road. Special loading and tie down procedures are required Delivery of final products increases if there is a potential for long haul or time pressures on drivers.

Both pickup from logging areas and delivery to customers may require travel on temporary roads with uneven terrain. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.

Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.

What Does Sawmills And Planing Mills Insurance Cover & Pay For?

Sawmills And Planing Mills Insurance Claim Form

Sawmills and planing mills, like other businesses, can face a variety of legal challenges. Here are some common reasons these companies might be sued and how the right insurance policies can provide protection:

1. Employee Injury: Working in a sawmill or planing mill can be hazardous. Employees may sustain injuries from heavy machinery, falling timber, or other workplace accidents. If an employee feels the company failed to provide a safe work environment, they may sue for damages. Workers Compensation Insurance can cover the costs of medical treatment and lost wages for the injured employee, as well as the legal costs if the company is sued over the injury.

2. Property Damage: Sawmills and planing mills use powerful machinery that can sometimes cause property damage. This can lead to lawsuits from property owners. A Commercial Property Insurance policy can cover the costs of damage to the business property and can also help cover legal fees if a lawsuit arises due to property damage.

3. Product Liability: If a product produced by a sawmill or planing mill is defective or causes harm, the company can be sued for damages. Product Liability Insurance covers legal fees and any settlements or judgements related to product liability claims.

4. Environmental Damage: These businesses often deal with potentially harmful materials like chemicals or waste products. If these materials cause environmental damage, the company can be held liable. Environmental Liability Insurance can cover cleanup costs, as well as legal fees and damages if the company is sued over environmental issues.

5. Business Interruption: If a sawmill or planing mill has to halt operations due to a covered loss (like fire or a natural disaster), they could be sued by businesses downstream who depend on their products. Business Interruption Insurance covers lost income during these shutdown periods and can also cover legal costs if a lawsuit arises from the interruption.

These are just a few examples. Each sawmill or planing mill will have unique risks and liabilities based on its specific operations. It's crucial for businesses to work with an experienced insurance broker to ensure they have the appropriate coverage for their unique risks.

Commercial Insurance And Business Industry Classification

Description for 2421: Sawmills And Planing Mills, General

Division D: Manufacturing | Major Group 24: Lumber And Wood Products, Except Furniture | Industry Group 242: Sawmills And Planing Mills

2421 Sawmills And Planing Mills, General: Establishments primarily engaged in sawing rough lumber and timber from logs and bolts, or resawing cants and flitches into lumber, including box lumber and softwood cut stock; planing mills combined with sawmills; and separately operated planing mills which are engaged primarily in producing surfaced lumber and standard workings or patterns of lumber. This industry includes establishments primarily engaged in sawing lath and railroad ties and in producing tobacco hogshead stock, wood chips, and snow fence lath. Establishments primarily engaged in manufacturing box shook or boxes are classified in Industry Group 244; those manufacturing Bash, doors, wood molding, window and door frames, and other fabricated millwork are classified in Industry Group 243; and those manufacturing hardwood dimension and flooring are classified in Industry 2426.

  • Cants, resawed (lumber)
  • Ceiling lumber, dressed
  • Chipper mills
  • Custom sawmills
  • Cut stock, softwood
  • Flitches (veneer stock), made in sawmills
  • Flooring (dressed lumber), softwood
  • Fuelwood, from mill waste
  • Furniture dimension stock, softwood
  • Kiln drying of lumber
  • Lath, made in sawmills and lathmills
  • Lumber stacking or sticking
  • Lumber: rough, sawed, or planed
  • Planing mills, independent: except millwork
  • Resawing lumber into smaller dimensions
  • Sawdust and shavings
  • Sawmills, except special product mills
  • Siding, dressed lumber
  • Silo stock, wood: sawed
  • Snow fence lath
  • Stud mills
  • Ties, railroad: sawed
  • Tobacco hogshead stock
  • Wood chips produced at mill

Description for 2426: Hardwood Dimension And Flooring Mills

Division D: Manufacturing | Major Group 24: Lumber And Wood Products, Except Furniture | Industry Group 242: Sawmills And Planing Mills

2426 Hardwood Dimension And Flooring Mills: Establishments primarily engaged in manufacturing hardwood dimension lumber and workings therefrom; and other hardwood dimension, semi-fabricated or ready for assembly; hardwood flooring; and wood frames for household furniture. Establishments primarily engaged in manufacturing stairwork, molding, and trim are classified in Industry 2431; and those manufacturing textile machinery bobbins, picker sticks, and shuttles are classified in Industry 3552.

  • Blanks, wood: for bowling pins, handles, and textile machinery
  • Blocks, wood: for bowling pins, handles, and textile machinery
  • Bobbin blocks and blanks, wood
  • Brush blocks, wood: turned and shaped
  • Carvings, furniture: wood
  • Chair frames for upholstered furniture, wood
  • Chair seats, hardwood
  • Dimension, hardwood
  • Flooring, hardwood
  • Frames for upholstered furniture, wood
  • Furniture dimension stock, hardwood
  • Furniture squares, hardwood
  • Furniture turnings and carvings, wood
  • Gun stocks, wood
  • Handle blanks, wood
  • Handle stock, sawed or planed
  • Lumber, hardwood dimension
  • Parquet flooring, hardwood
  • Picker stick blanks
  • Rounds or rungs, ladder and furniture: hardwood
  • Shuttle blocks: hardwood
  • Spool blocks and blanks, wood
  • Stock, chair: hardwood-turned, shaped, or carved
  • Table slides, for extension tables: wood
  • Turnings, furniture: wood
  • Vehicle stock, hardwood

Description for 2429: Special Product Sawmills, Not Elsewhere Classified

Division D: Manufacturing | Major Group 24: Lumber And Wood Products, Except Furniture | Industry Group 242: Sawmills And Planing Mills

2429 Special Product Sawmills, Not Elsewhere Classified: Mills primarily engaged in manufacturing excelsior, wood shingles, and cooperage stock; and in sawing special products, not elsewhere classified.

  • Barrel heading and staves, sawed or split
  • Cooperage stock mills
  • Cooperage stock: staves, heading, and hoops sawed or split
  • Excelsior, including pads and wrappers: wood
  • Hoops, wood: for tight or slack cooperage-sawed or split
  • Sawmills, special product: except lumber and veneer mills
  • Shakes (hand split shingles)
  • Shingle mills, wood
  • Shingles, wood: sawed or hand split
  • Wood wool (excelsior)
  • Wrappers, excelsior

Sawmills And Planing Mills Insurance - The Bottom Line

Not all sawmills and planing mills insurance policies are the same - in fact they can be different in premiums and coverages. You can discover if your business has the best fit insurance policies by talking to an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.

Manufacturing Insurance

The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.

Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.

In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.

Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.

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