TCA Assurances

Insuring businesses in the wood industry

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Insuring businesses in the wood industry

The wood industry encompasses a wide variety of trades and activities.

Numerous professions are involved in wood processing, whether for timber, industrial wood, or energy wood. This includes sawmills, pulp manufacturers, and energy wood factory outlets.

Then comes wood exploitation, which spans various domains such as construction, furniture, paper, and packaging.
Sawmills, key players in wood processing, are classified as “Installations Classified for the Protection of the Environment” (ICPE) and are subject to registration due to their electrical installations, use of preservation products, and wood storage.

This means that sawmill operators must submit a request for authorization to the prefecture before starting operations, demonstrating the acceptability of the risk. The prefect reserves the right to authorize or deny the company’s operations.

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The Challenge of Finding Insurance for the Wood Industry

Insurance for sawmills is not mandatory. However, it is highly recommended and often a condition set by banks for potential loans or investments.
Despite this, sawmills often face difficulties in obtaining insurance.

The wood industry has a high incident rate. Sawmills, in particular, face significant risks of explosions and fires due to the storage of flammable materials and electrical installations. Workers in sawmills also operate in hazardous conditions, where falls and accidents are not uncommon.

For example, consider the fire at the Houtaud sawmill last July!

Improving Safety and Working Conditions to Mitigate Risks

Insurance companies reserve the right to insure an establishment based on their assessment of potential industrial or artisanal risks.

As such, insurance coverage may be conditional on the company’s adoption of specific security standards.

In an industry with such a high incident rate, improving safety to reduce risks is a logical approach.

Prevention Contracts

To this end, some companies offer prevention contracts, such as the implementation of water reserves or dual water supply circuits.
Others may require regular cleaning and dust removal operations, as well as drills with local emergency services.

Annual Compliance Certificate

All these preventive measures are subject to an annual compliance certificate issued by a control office mandated by the insurance company.

TCA Assurances: Our Insurance for the Wood Industry

  • Machinery breakdown
  • Fire
  • Business interruption following fire or explosion
  • Business interruption following machinery breakdown
  • Workplace accidents
  • Employer’s gross negligence
  • Environmental damage
  • And more…

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