ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Business and Employment»
  • Business Insurance & Liability

How to Underwrite a Logging and/or Recycling Operation

Updated on July 4, 2016
Randi Glazer profile image

Randi Glazer is a Sr. Insurance Professional with experience underwriting, marketing, organizational leadership & managing large staff

Special Underwriting Considerations for Logging and Recycling Operations

Considerations to be Identified for these Operation:

Fire

The peril of fire is by far the greatest cause of loss or damage for a logging or recycling. Many fires start within a piece of equipment due to improper maintenance or accumulation of oil soaked debris (wood chips, brush, sawdust) on the undercarriage which is ignited by a spark, improper smoking, or heat from the engine or transmission. The resulting fire quickly gets out of control making very early and effective efforts to extinguish the blaze important in order to protect other equipment at the job site. Despite best efforts, and even the presence of a built-in extinguishing system, the equipment Involved is often a total loss. Having the equipment fully insured to value is essential.

Employee Selection

Preventative measures taken prior to a loss are particularly important with the type of equipment these operations use. Employees experienced with know how to operate the equipment are a must as much of the equipment is specialized and requires special training to maintain and operate. The equipment these operations have are quite expensive so having an employee with experience can save your business from a potential fire. Financial trouble may be preceded by a rapid turnover of employees or inadequate maintenance.

Fire fighting apparatus on the job site

This can be effective, but should not be viewed as a panacea since there are problems inherent with the various types.

Fire extinguishers require manual operation and are of little use if cinders ignite brush after employees leave the area.

Automatic fire suppression apparatus protecting the engine compartment and for cab of the equipment frequently do not have sufficient capacity to extinguish fires which rapidly spread, reach an intense heat, and are fed by oil, fuels, etc. A suppression system that is adequate for the machinery itself will be defeated once the fire has spread to other combustibles.

Water trucks, like manual fire extinguishers, must be manually operated but also may be inappropriate when gasoline, diesel fuel oil, or other lubricants, are involved.

Besides Fire, other risks to consider include overturn with Motor Truck Cargo//Transportation due to terrain and poor access roads, floods, and to a lesser degree vandalism and theft since job sites are rarely patrolled.

Video of a Grinder Machine

Specialized Logging and Recycling Equipment

Spar poles, portable towers, grinders, mulching machines:

For all of these fire damage and catastrophic loss is the most critical. Spar poles and portable towers consists of a large center post or mast to which pulleys and cables are connected. The cables are then used to move logs from the forest to a centralized area for loading. Generally the hazards peculiar to spar poles and portable towers are the same hazards encountered when considering cranes and draglines (upset, overturn, wind, and boom damage) which need to be carefully underwritten. Do not think that a smaller value of the equipment means there isn't one. Grinders and mulch machines that are older will still have a high replacement cost. If it is not insured to proper valuation and there is a partial loss, it could become a total loss if the equipment is not insured to value.

Underwriters must consider the following when underwriting this type of equipment:

a. Age of equipment,

b. Maintenance and inspection procedures.

c. Separate value of yarder and pole.

d. Training and experience of operators.

e. Are these rented or are they owned?

f. Frequency and method of transportation from one site to another.

g. Are all the pieces insured to value. This is critical for knowing what the totals values are and also for pricing.

h. Minimum of three years loss experience.

© 2015 Randi Glazer

Comments

Submit a Comment

No comments yet.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. (Privacy Policy)
CloudflareThis is used to quickly and efficiently deliver files such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisements has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)