Sawmill Insurance: Cost & Quotes From $28/mo

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Sawmils process the lumber that come from loggers. Insurance for sawmills is a critical aspect of risk management for businesses operating in the forestry and lumber industry. Sawmills face various risks and hazards, including property damage, equipment breakdown, liability claims, and employee injuries. The right insurance coverage can protect your business from financial losses and ensure its long-term sustainability. Read to know the inclusions of sawmill insurance, premiums, policy limits, and the best companies. 

General Liability Insurance for Sawmills

CoverWallet  NEXT (Best) Thimble Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $300,000/$1,000,000 $300,000 $100,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No No Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0

General liability insurance is a fundamental coverage option for sawmills. It protects against third-party bodily injury, property damage, and related legal expenses. General liability insurance can provide financial protection, whether a slip-and-fall accident on your premises or damage caused by falling trees during operations.


Coverage Limits of General Liability Insurance for Sawmills

Coverage limits for general liability insurance typically range from $1 million to $5 million. The insurance cost depends on various factors, including the size of your sawmill, the number of employees, and the location of your business.


Add-Ons to General Liability Insurance for Sawmills

  • Pollution liability coverage–Protects your sawmill against claims related to pollution or environmental damage caused by your operations, including issues such as water or soil contamination

  • Contractual liability coverage–Extends coverage to include liability assumed under specific contracts or agreements with clients or vendors

  • Product liability coverage–This add-on extends coverage to protect against claims related to defective products manufactured or sold by your sawmill

Professional Liability Insurance for Sawmills

CoverWallet  NEXT Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Can be included No
HIPAA coverage included? No No No No No
Sexual misconduct coverage included? No No No No Can be included
License defense coverage included? No No No No Can be included
Deductible  $500 $500 $500 $50/$10,000 $500


Professional liability insurance, or errors and omissions insurance, is crucial for sawmills that provide professional advice or services. It protects against claims of negligence, errors, or omissions in professional duties. For example, professional liability insurance can provide coverage if a customer claims financial losses due to defective lumber or errors in sawmill operations.


Coverage Limits of Professional Liability Insurance for Sawmills

Professional liability insurance normally covers between $500,000 and $2 million. The size of the sawmill, the quantity of professional services rendered, and the staff’s expertise and education all impact insurance costs.


Add-Ons to Professional Liability Insurance for Sawmills

  • Subcontractor coverage–Covers claims arising from the actions or omissions of subcontractors hired by your sawmill, protecting liabilities resulting from their work

  • Prior acts coverage–Extends coverage to include claims arising from professional services rendered before the start date of the professional liability policy, ensuring retroactive coverage for past work

  • Media liability coverage–Covers claims related to defamation, libel, slander, or infringement of intellectual property rights arising from your professional services, including content creation or publishing

What Happens if a Customer Claims Financial Losses Due to Defective Lumber?

Professional liability insurance can cover legal defense costs and potential settlements or judgments if a customer files a claim for financial losses caused by defective lumber.

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Commercial Property Insurance for Sawmills

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Excluded Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Excluded Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Included Excluded


Stationary and portable sawmill insurance bundles offer a commercial property policy. This protects the physical assets of your sawmill business, including buildings, machinery, tools, and inventory. In the case of unforeseen events or disasters, such as fires, storms, or theft, commercial property insurance helps you recover financially and get your operations back on track.


Coverage Limits of Commercial Property Insurance for Sawmills

Coverage limits for commercial property insurance for sawmills depend on the value of your sawmill’s property and can range from $500,000 to several million dollars.


Add-Ons to Commercial Property Insurance for Sawmills

  • Inland marine coverage–Extends coverage to include property in transit or temporarily off-site, such as portable sawmill equipment or tools used at remote job sites

  • Flood insurance–Provides coverage for damage caused by floods, which is typically not included in standard commercial property insurance policies

  • Outdoor property coverage–Covers outdoor structures, signs, fences, and landscaping on your sawmill premises

Are Portable Sawmills Covered Under Commercial Property Insurance?

Portable sawmills may be covered by commercial property insurance, depending on the policy and insurer.  If a portable sawmill is critical to your commercial operation, check your insurance policy or talk to an advisor to see if it covers movable machinery. Certain equipment or moveable assets may be excluded from some business property insurance plans.


Business Owner’s Policy for Sawmills

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded


A business owner’s policy (BOP) combines general liability and commercial property insurance into a single package, offering comprehensive coverage for sawmill owners. It is a cost-effective solution that provides broad protection against various risks.


Coverage Limits of Business Owner’s Policy for Sawmills

A BOP for sawmills offers a $1 million general liability coverage and a $25,000-$60,000 commercial property coverage. It’s possible for your actual policy to have higher limits. 


Add-Ons to Business Owner’s Policy for Sawmills

  • Business Interruption Insurance–Provides coverage for lost income and ongoing expenses if your sawmill operations are temporarily suspended due to a covered event, such as a fire or natural disaster
  • Equipment breakdown coverage–Protects against the costs of repairing or replacing essential equipment, machinery, or systems in your sawmill that break down due to mechanical or electrical failures

Does a Business Owner’s Policy Cover Theft of Sawmill Equipment?

BOP coverage varies by insurance company and policy terms. It may cover sawmill equipment theft, depending on the policy. Some BOPs cover business property theft, including machinery and equipment. Check the policy’s terms and conditions to see if theft coverage is included and if there are any equipment theft exclusions or limitations.




Tools and Equipment Insurance for Sawmills

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


Tools and equipment insurance protects the valuable tools, machinery, and equipment used in your sawmill operations. It provides coverage against theft, damage, or loss of these essential assets.


Coverage Limits of Tools and Equipment Insurance for Sawmills

Coverage limits for tools and equipment insurance depend on the value of your equipment and can range from a few thousand dollars to several million dollars. 


Add-Ons to Tools and Equipment Insurance for Sawmills

  • Contractor’s equipment floater–Provides coverage for tools and equipment frequently moved between job sites, ensuring they are protected against loss, theft, or damage

  • Rented or leased equipment coverage–Protects tools and equipment you rent or lease for use in your sawmill operations, ensuring they are covered for damages or theft

Does Tools and Equipment Insurance Cover Damage Caused by Power Outages or Electrical Surges?

Tools and equipment insurance policies differ depending on their terms and conditions. 

Standard tools and equipment insurance may not cover power outages or electrical surges. These events are usually outside the insured party’s control and may fall under property or equipment breakdown insurance.

Workers Compensation Insurance for Sawmills

Workers’ compensation insurance is essential for protecting your employees in case of work-related injuries or illnesses. It provides coverage for medical expenses, disability benefits, and lost wages for employees who suffer job-related injuries or illnesses.

Coverage Limits of Workers Compensation Insurance for Sawmills

Coverage limits for workers’ compensation insurance vary by state regulations and the number of employees in your sawmill. The insurance cost is influenced by factors such as the number of employees, the nature of the work performed, and the past workers’ compensation claims history.


Add-Ons to Workers Compensation Insurance for Sawmills

  • Employer’s liability coverage–Extends coverage beyond the standard workers’ compensation benefits to protect your sawmill against lawsuits from employees who claim that their injuries were caused by employer negligence or unsafe working conditions

  • Occupational accident coverage–Provides coverage for non-employee workers, such as contractors or subcontractors, who may not be covered under the standard workers’ compensation policy

Are Independent Contractors Covered Under Workers’ Compensation Insurance?

Independent contractors are typically not covered under workers’ compensation insurance. However, reviewing your specific policy and consulting with your insurance provider is essential to ensure compliance with state regulations.



Commercial Auto Insurance for Sawmills

Commercial auto insurance covers vehicles used in your sawmill operations, including trucks, vans, and other vehicles used for transportation or delivery. It protects against accidents, damage, theft, and liability claims related to these vehicles.


Coverage Limits of Commercial Auto Insurance for Sawmills

Coverage limits for commercial auto insurance depend on your vehicle’s value and the desired coverage level. The insurance cost is influenced by the number of vehicles, your employees’ driving records, and the vehicles’ intended use.


Add-Ons to  Commercial Auto Insurance for Sawmills

  • Hired auto coverage–Provides coverage to vehicles you rent or lease for your sawmill’s operations, ensuring they are protected against damages or liability claims

  • Non-owned auto coverage–Offers coverage for vehicles not owned by your sawmill but used by employees for work purposes, such as personal vehicles for business errands or deliveries

  • Uninsured/underinsured motorist coverage–Protects your sawmill and its employees against damages and injuries caused by uninsured or underinsured motorists involved in accidents with your commercial vehicles

Are Trailers Used for Transporting Lumber Covered Under Commercial Auto Insurance?

Trailers used for transporting lumber can be covered under commercial auto insurance as long as they are listed in the policy and their value is included.

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Sawmill Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $37 $444 $0-$500
Professional liability insurance $39 $468 $1,000-$2,000
Commercial property insurance $68 $816 $1,000-$2,000
Business owner’s policy $71 $852 $1,500
Tools and equipment insurance $42 $504 $500-$1,000
Commercial auto insurance $74 $888 $500-$1,000
Workers compensation insurance $92 $1,104 $2,500-$5,000
Excess liability insurance $46 $552 $500-$1,000


The average sawmill insurance cost is $37 per month or $444 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best sawmill insurance companies:

Cost per Month Cost per Year Best for
NEXT $21 $252 Best overall; Fastest general liability insurance for sawmills
CoverWallet $24 $288 Comparing sawmill insurance quotes online
The Hartford $28 $336 Experienced and reliable insurance provider
Tivly $30 $360 Comparing sawmill insurance quotes over the phone
Thimble $33 $396 On-demand coverage for sawmills
Hiscox $37 $444 Sawmill insurance with automatic renewal

Compare Cheap Sawmill Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Sawmill Insurance Companies

When it comes to protecting your sawmill and its operations, choosing the right insurance company is crucial. Several reputable insurance providers offer tailored insurance solutions for sawmills. Here’s a brief introduction to some of the top sawmill insurance companies:


NEXT Sawmill Insurance  

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for sawmills 

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT is a leading insurance company that covers various industries, including sawmills. They are known for their comprehensive coverage options catering to sawmill businesses’ unique needs. 

Best for: Best overall; Fastest general liability insurance for sawmills 

Average cost: $21 per month

Our rating: 10/10


CoverWallet Sawmill Insurance

Pros

  • Customized coverage options: CoverWallet understands the unique risks sawmills face and provides customized coverage options to protect your business adequately

  • User-friendly platform: Their user-friendly platform allows sawmill owners to easily compare quotes, manage policies, and access important insurance documents

Cons

  • Not an insurance company but an insurance broker 

CoverWallet is another reputable insurance provider offering tailored solutions for sawmills. Their user-friendly platform simplifies the insurance process, making finding the right coverage for your sawmill needs easy.

Best for: Comparing sawmill insurance quotes online 

Average cost: $24 per month

Our rating: 10/10


The Hartford Sawmill Insurance

Pros

  • Industry experience: Hartford has a long history of providing insurance solutions for businesses, including sawmills. They bring valuable expertise and understanding to the table

  • Reliable customer service: Is known for its excellent customer service, providing prompt assistance and support to its policyholders

Cons

  • Not a company with a BBB rating. Mixed customer opinions

The Hartford is a well-established insurance company that offers a range of insurance products, including coverage for sawmills. They have extensive experience providing insurance solutions and are known for their reliable customer service.

Best for: Experienced and reliable insurance provider

Average cost: $28 per month

Our rating: 10/10


Tivly Sawmill Insurance

Pros

  • Tivly offers tailored coverage options specifically designed for sawmills, ensuring you have the protection you need for your business operations

  • Tivly understands that sawmill businesses may have evolving needs, and they offer flexible policies to accommodate those changes

Cons

  • You need to call to compare quotes

Tivly is an innovative insurance provider offering flexible sawmills coverage options. They understand the unique needs of sawmill businesses and strive to provide comprehensive coverage solutions that align with those needs. Call now to compare quotes over the phone. 

Best for: Comparing sawmill insurance quotes over the phone 

Average cost: $30 per month

Our rating: 10/10


Thimble Sawmill Insurance

Pros

  • On-demand coverage: Thimble allows sawmill owners to purchase coverage for specific periods, providing flexibility and cost-effectiveness

  • Simple and fast application process: Thimble has a user-friendly platform that makes obtaining insurance coverage for your sawmill quick and easy

Cons

  • Thimble’s coverage options may be more limited than other insurance providers

Thimble is an insurance provider that offers flexible, on-demand coverage options for sawmills. They specialize in providing insurance solutions for small businesses, making them a suitable choice for smaller sawmill operations.

Best for: On-demand coverage for sawmills 

Average cost: $33 per month

Our rating: 10/10


Hiscox Sawmill Insurance

Pros

  • Customized coverage: Hiscox understands the unique risks faced by sawmills and offers customized coverage solutions that address those risks effectively

  • Reputation and reliability: Hiscox is a reputable insurance provider known for its reliability and commitment to customer satisfaction

Cons

  • There is no coverage available in Alaska

Hiscox is a well-known insurance company that offers a range of commercial insurance solutions, including coverage for sawmills. They provide tailored coverage options to meet the specific needs of sawmill businesses, ensuring comprehensive protection.

Best for: Sawmill insurance with automatic renewal 

Average cost: $37 per month

Our rating: 10/10

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