“Timber’s Unseen Risk: Protecting Assets from Natural Disasters Amid Limited Insurance Options,” Risk & Insurance

In an article published in Risk & Insurance on February 28, 2025, Will Wilson explains the history of the timber industry’s unique risk profile.

“For timberland owners, managing a forest is a long-term commitment that spans decades. Timber trees typically require up to 25 years before they can be harvested, making timberland ownership fundamentally different from agricultural sectors where crops are harvested annually,” says Will. “This extended timeline means that timber owners face a unique set of risks, many of which are beyond their control, and these risks are compounded by the increasing frequency and intensity of natural disasters.”

Will further discusses the limited insurance options for those in the industry.

“There are virtually no viable insurance products in the market that protect timber stands,” Will explains. “A handful of insurers offer two types of timber insurance, according to professors at Mississippi State University Extension, but their financial benefits are limited. A standing timber insurance policy can cover a forest for the last three years before it matures, they write, but it ‘is generally not considered to be a financially viable option over the life of a forest because the premiums paid would negate all potential profits.’”

To read the full article, you may click here.