The wood treatment or wood preservation industry includes establishments that are engaged in treating lumber with various chemicals and preservatives to prevent decay and protect against fire and insects.
In general, the treated logs are used to manufacture products like:
- Seasoned building materials
- Utility poles, fencing, and railway ties
- Exterior plywood panels for structures and dwellings
- Truck beds and support structures
- Crop containers
- Lawn furniture and decks
- Playground equipment
- Garden and landscaping lumber
- Log homes
While the wood treatment industry has been operating in the US for nearly a century, it has in recent years been forced to make changes to some of the chemicals and processes used in order to protect people and the environment.
But environmental risks, health risks, and more typical business risks are still present for any wood treatment business. With the right wood treatment manufacturing insurance, you can get the peace of mind that comes from knowing you’ll be protected when something goes wrong.
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Why Do I Need Wood Treatment Manufacturing Insurance?
Wood treatment facilities face numerous, very serious risks. While they have the same exposures to property damage and bodily injury claims as other manufacturers, there is a more serious concern.
While wood that has been treated industrially has been found to pose limited risks to the public, the wood treatment process has been found to cause environmental damage.
Years of non-environmentally conscious practices have left contaminated ground and water near older wood treatment sites. In order to minimize any further damage, in 2003 the US Environmental Protection Agency (EPA), along with the wood treatment industry, stopped treating residential lumber with certain arsenic-based chemicals that were the most problematic.
Arsenic-based pesticides have been replaced with a variety of copper-based chemicals for all residential lumber. But the older, more dangerous chemicals are still in use for outdoor and non-residential products like trailer beds, piers, docks, and agricultural buildings.
Despite the new rules, the danger still exists that wood treatment manufacturers will accidentally spill or gradually leak toxic chemicals into the ground, posing a danger to nearby waterways, animals, and crops.
Environmental Liability Insurance for Wood Treatment Manufacturers
Even when every precaution has been taken to avoid polluting the environment or harming individuals with toxic chemicals, not every spill or contamination event can be prevented.
While the EPA has worked with the industry to curb dangerous leaks into groundwater and other types of spills by requiring the industry to update the chemicals and processes that are used, no process or chemical is perfect.
And not every wood treatment manufacturer will be 100% flawless in their efforts to protect the environment and implement the new rules.
One mistake can be devastating for surrounding communities, employees, and the financial viability of the wood treatment facility. And because environmental claims are typically excluded from general liability policies, wood treatment manufacturers are likely to have little recourse if they are faced with the fallout from causing an environmental disaster.
That’s why environmental liability insurance, or pollution liability insurance, is so important for wood treatment manufacturers.
It typically includes coverage for cleanup activities required by law, as well as third-party bodily injury and property damage costs. In addition, it covers the manufacturer’s legal defense and court costs, as well as settlements or judgments associated with the pollution or contamination incident.
Coverage is for incidents that are sudden and accidental, or those that arise out of gradual contamination (groundwater seepage, contamination of nearby agriculture or waterways, etc.).
Environmental liability insurance can also include coverage for business interruption (lost income, ongoing expenses) due to environmental accidents.
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Other Insurance Policies for Wood Treatment Manufacturers
In addition to protecting their assets from the costs associated with environmental accidents, wood treatment manufacturers also need several other business insurance policies designed to protect their wide-ranging business interests.
Talk to an independent agent about your need for:
- Commercial property insurance: This covers your buildings and other physical assets when they are damaged by fire, theft, weather, etc.
- Business interruption coverage: This offers income protection and payment of expenses if you must temporarily close due to a covered loss (fire, storm damage, etc.).
- Equipment breakdown insurance: This covers certain costs associated with accidental breakdown of equipment or machinery and the resulting property damage and loss.
- Commercial general liability insurance: This helps you pay for related expenses when someone claims that your business has caused bodily injury or property damage; includes coverage for legal fees, defense costs, and settlements or judgments if you are sued.
- Commercial auto insurance: This covers your vehicle fleet and drivers in the event of an accident or other vehicle damage.
Workers’ Compensation Insurance for Wood Treatment Manufacturers
Injured workers come with a high cost, and wood treatment workers face more risks than most. Your workers face unique risks like working with heavy machinery and toxic chemicals, and exposure to excessive wood dust and other potential lung irritants.
Workers’ compensation insurance provides financial protection when accidents happen in your workplace. It ensures that injured workers get medical care and income replacement while they are unable to work.
Workers’ compensation insurance provides benefits for injured workers regardless of who is at fault for the accident.
Wood treatment manufacturers may pay more for workers’ compensation insurance than employers in many other industries, because your workers face a high degree of risk.
Work with an independent insurance agent who can help you learn about the workers’ compensation requirements in your state, and can help you find find affordable coverage.
How Much Does Wood Treatment Manufacturing Insurance Cost?
Wood treatment manufacturing is a complex business with a high degree of risk. Your business insurance rates may be higher than other industries that are considered to be less likely to encounter costly problems.
Your company’s insurance premiums will be based on the size and location of your facility, whether you operate one or multiple wood treatment facilities, the number of employees you have, and more.
An independent insurance agent can help you learn about how to ensure you are doing all you can to get the best rates.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right wood treatment manufacturing insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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