Lumber Yard Insurance

Lumber yards play a critical role in the building industry by supplying contractors, builders, etc., with raw materials needed for construction projects. But to adequately protect your business, you need the right coverage only provided by lumber yard insurance. Having the right policy can help protect your lumber yard business against potential losses caused by a number of different disasters ranging from vandalism to fire damage and beyond.

An independent insurance agent can help you build a lumber yard insurance policy specifically designed to meet the coverage needs of your business. They'll help you get set up with coverage fast. But first, here's a breakdown of lumber yard insurance.

What Is Lumber Yard Insurance?

Lumber yard insurance or lumberyard insurance is a special type of business insurance policy tailored to meet the needs of the specific niche. Since lumber yards are at risk of several different disasters, including fires, vandalism, lightning strikes, and more, they need coverage to help pay for resulting financial losses. Without the right kind of insurance in place, your lumber yard could potentially suffer a huge financial loss that your business might not be able to recover from.

Why Lumber Yards Need Sufficient Commercial Property Coverage

As the owner of a lumber yard, fire is one of your most damaging possible threats. This common hazard can completely wipe out your entire inventory if it's severe, and many lumber yard materials are highly flammable. Be sure to look into the following types of coverage for your lumber yard business:

Commercial property insurance: This covers business property like buildings, inventory, tools, equipment, and machinery against risks like fire damage, theft, vandalism, and more.
Equipment breakdown coverage: Covers the cost of repairs, replacement, temporary rentals, and reimbursement for income lost while damaged or destroyed equipment and machinery is out of commission due to a covered cause like a power surge.
Commercial flood insurance: Damage or destruction to business property due to natural flooding isn't covered by commercial property insurance, so you'll need to add a special commercial flood insurance policy if your lumber yard is at risk.
Inland marine insurance: This covers your business's tools, equipment, and other property while it's in transit.

Talk to a local independent insurance agent about your concerns for your business's property. They'll get you set up with all the commercial property coverage protection your lumber yard needs.

Lumber Yards Must Have Business Liability Coverage

Another critical part of lumberyard insurance is liability protection. Since your lumber yard could be sued by customers, guests, and other third parties at any time for pretty much anything, having coverage is essential to protect against possibly devastating lawsuit costs. Look into the following types of liability coverage for your lumber yard:

Commercial general liability insurance: This covers the costs of lawsuits, including attorney, court, and settlement fees, if your business gets sued by a third party for claims of personal property damage or bodily injury.
Product liability insurance: This covers lawsuit costs if a third party accuses your business of selling a product that caused property damage or bodily injury because of a defect or flaw.
Commercial auto liability insurance: This covers the costs of lawsuits associated with accidents and other incidents involving company vehicles.
Hired or non-owner auto liability insurance: This covers the costs of lawsuits associated with accidents and other incidents involving vehicles owned by your employees that are used for business purposes.
Commercial umbrella insurance: This extends an existing policy's liability coverage limit to $1 million or greater to provide much greater protection against lawsuits.

Your independent insurance agent will be able to recommend the exact types of liability insurance required by your specific lumber yard.

Other Kinds of Insurance for Lumber Yard Businesses to Consider

In addition to property and liability coverage, a lumberyard insurance policy may still require more types of coverage to be complete. Consider the following types of commonly added coverage for your lumber yard policy:

Business income insurance: This covers the costs of temporary shutdowns caused by covered disasters like fire damage, including a continued stream of income and employee wages for that time.
Workers' compensation: This coverage is likely mandatory in your state if you have any employees. It provides coverage for medical expenses and lost income if a worker gets injured or ill due to their job duties or work environment.
Employment practices liability insurance: Also known as EPLI, this covers your business's legal defense and potential financial damages if an employee sues it for sexual harassment, discrimination, or wrongful termination.
Crime insurance: This covers costs associated with dishonest acts by employees or criminals against your business, including theft of cash from the register.

There may still be other coverage options that can benefit your particular lumber yard. Be sure to discuss your business's operations with a qualified independent insurance agent who can help you find coverage to protect your lumber yard against all kinds of hazards.

Get Help Building a Strong Lumber Yard Insurance Policy

Purchasing business insurance for your lumber yard can be a complex process if you attempt it solo. Still, when you work with an independent insurance agent with experience in your niche, it becomes much easier and faster.

Independent insurance agents shop and compare policies from various local insurance carriers for you and ultimately only present you with the best options. They'll be sure to get you the coverage you need at the right price. Plus, as a bonus, they'll be there for you down the road when and if claim time comes or you need to update or change your coverage.

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