Logging Trucks

May
2010

Does anyone remember the Log Driver’s Waltz? That song/video came to mind when I watched this video. I guess you could call this the Log Driver’s Waltz of the 21st century.

While watching this from an insurance perspective, I can’t help but think of a few areas of risk that pop-out.

Firstly, the vehicles themselves – I’m wondering how much “abuse” like this they can handle and what a claim would look like from water damage to the vehicle. Then the cargo – a few times watching this video I get nervous as I’m waiting for trucks to tip over and watch the cargo go washing down the river, perhaps to be picked up by the log driver. Thirdly, a concern would be for the drivers – or employees – especially when the gentleman gets out of the truck and bounces up and down on the hood.

These are just 3 areas of risk that jump out in this video. I wonder how a meeting with the insurers, brokers or risk managers for this logging company would go. I imagine they discuss that in risk there are really 3 things that can be done: avoid it, retain it, or transfer it (or perhaps a mixture of the last 2). In this case avoiding the risk isn’t happening. Obviously the cargo is worth something to the people hauling it – hopefully more-so than the risk involved.

The company can retain the risk that perhaps the vehicles will be damaged, the cargo lost, or an employee injured and bare the brunt of those costs out of profits.

The third option is to transfer the risk – most notably – purchase insurance. This is why we purchase insurance on our homes, vehicles and businesses – we are transferring the risk that we are not willing to retain or avoid, to another party.

This is why it is imperative to select a broker that will give you good advice on how to best manage your risks.

-Dave Bugo