What is Lumber Yard Insurance?

Lumber yards fuel the construction industry. They supply multiple players, from contractors to homebuilders, with the raw material required to build any number of structures.

As long as houses, buildings, and roads exist, the lumber business will flourish. But a key component of keeping your lumber yard business from going under is to protect it with a full-fledged commercial insurance package.

Carriage Trade Insurance Agency can help you design the perfect lumber yard insurance portfolio, designed specifically to meet the unique needs of your business.

What types of insurance coverage do lumber yards need?

Property Damage Control:
The majority of a commercial insurance policy for lumber yards will need to deal with property and equipment coverage.

• Your lumberyard likely has at least one building. In that case, you will need building insurance to protect it against hazards like fire, heavy winds, or vandalism.
• For those objects that you keep inside that building, like computers, saws, and inventory, contents insurance has you covered.
• Machinery and equipment can break down or malfunction because of several factors like power surges and operator errors. But this can cause delays that may force business to a grinding halt. Equipment breakdown coverage is a good safety net to cover the costs of repairs and rentals or even the loss of income when the machine isn't usable.
• Flood insurance can cover the one hazard that most commercial insurance policies don't cover. Since floodwaters can ruin wood, you might want to consider getting a commercial flood insurance policy through the National Flood Insurance Program (NFIP).

Liability Insurance:
Today, you can sue and get sued by anyone for anything. The judicial system in the United States has been known for the sheer number of lawsuits that can get filed for every little mishap. The downside to receiving justice? Legal fees and penalties can soar through the roof and add an extra financial burden to your business. Depending on the type of assets your company owns, leases, or trades with, you might need premises liability insurance, product liability insurance, and/or auto liability insurance.

Despite having these various liability coverages, their limits may not be high enough to protect your lumber business from expensive lawsuits. Consider investing in an umbrella insurance policy that can fill your other policies' gaps.

Other insurance protections available for lumber yards:

• When things go awry, and your operations come to a temporary halt, you need business income insurance to cover all the income lost during a covered event.
• Since the risk of injury is extremely high in a lumberyard environment, buying workers' compensation and disability insurance is a total no-brainer. Now some states mandate employers to offer workers' compensation while others do not. Either way, it's highly recommended in terms of giving your employees the financial aid needed for medical treatment and lost income due to on-the-job injuries.
• Employment practices liability insurance (EPLI) may help your business if a worker sues your lumberyard business for wrongful termination, discrimination, or sexual harassment.

Ready For A Quotation?

What you've read so far is just a general portfolio of insurance coverages for lumber yards. Your particular business is unique and might have needs that require additional coverage. Contact Carriage Trade Insurance Agency now to dissect and find out what coverages are the right fit for your lumber yard.