Insurance traces its modern history back to marine insurance in the late Middle Ages.
At that time, merchants and bankers became concerned about the safety of shipments. The bankers provided guarantees against loss. In return, merchants paid the bankers a fee for this protection. What became the modern insurance industry developed in England after the Great London Fire in 1666.
A short video on Insurance Basics
Risk is inevitable in the Forestry Industry; insurance helps address that reality. Insurance allows you to "trade" the chance of a large loss for certainty. This certainty comes in the form of smaller periodic payments, known as premiums. The "trade" of risk occurs through a legal contract called an insurance policy. This contract spells out the coverage, compensation, and/or other benefits.
What is going on with Log Truck Insurance?The Log Truck Insurance Market is in upheaval and there appears to be no end in sight
Risk has two key dimensions—frequency and severity—and both help determine if a logger or log trucker can buy insurance. “Frequency” relates to how often a loss occurs, i.e., whether the risk/event is common or rare. “Severity” relates to how costly losses resulting from that risk could be, i.e., whether they could be inexpensive or catastrophic in nature. Our industry tends to fall on the severity side of this spectrum. The real issue arises when both frequency and severity are on the rise, which is where we are today.