Sawmills And Planing Mills Insurance

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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:


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

Manufacturing

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.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 2421 Sawmills And Planing Mills, General, 2426 Hardwood Dimension And Flooring Mills, 2429 Special Product Sawmills, Not Elsewhere Classified
  • NAICS CODE: 321113 Sawmills, 321912 Cut Stock, Resawing Lumber, and Planing
  • Suggested ISO General Liability Code(s): 58873
  • Suggested Workers Compensation Code(s): 2710

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.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

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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