What would happen if your 25-year forestry investment was destroyed in hours?

Productive forest plantations have risen by over 60% in the last 25 years and with this growth comes a similarly sized risk. Commercial forest operations and investments are exposed to a range of risks such as wind, disease, pest and socio-economic factors.

Fire by far is the greatest risk to a forestry owner. The financial loss can run into the millions when you consider it is not only the loss of the trees but salvage costs, debris removal, the loss of future log yields plus the potential effect on future contracts.

Pest and biological peril are other hazards that will pose a risk to your investment. Trees form part of the food chain within the natural ecosystem and many flora and fauna are dependent on them for this survival. This, of course, can lead to a degree of pest and disease infestation.

Another major liability in the forestry industry is the weather. Wind as a catastrophic peril has very different loss characteristics to fire. Occurrences of hurricanes, cyclonic storms, gales and tornadoes vary greatly from country to country with mid to high latitude countries being more routinely exposed.

A loss of trees will almost certainly impact your income statement in the year the loss is incurred, and in future years. In addition, the reduction in tree area will impact your balance sheet going forward.

Harvesting a solution

A loss of trees will almost certainly impact your income statement in the year the loss is incurred, and in future years. In addition, the reduction in tree area will impact your balance sheet going forward.

 G&M forestry Insurance

We specialise in the insurance and reinsurance of forestry and tree crops in territories across the world. We will work with you to determine a tailored solution for the protection of your investment and forestry business.

Forestry insurance generally covers the destruction of trees as a direct consequence of Fire, Hail, Malicious Acts, Impact, Earthquake and as an option, Windstorm. The policies provide a variety of Additional Benefits including Replanting Costs, Fire Fighting and Mitigation Expenses, Removal of Debris, Plantation Infrastructure and Claims Preparation Costs.

If you are looking for an insurance solution for your investment then get in touch with us today on +44 (0) 207 977 1490. Our brokers will assist with expert reviews of forest resources, verification of the level of risk management and appraising activities in the case of loss.