Timbersure, the insurance solutions package for the wood and allied trades, is the latest addition to The Timber Trade Federation‘s portfolio of services. Launched on November 1, Timbersure is an amalgamation of three of the timber insurance industry’s leading brokers, each with its own area of expertise.

Linakers Insurance Brokers and Risk Management, which has been developing the facility for over two years, will provide all general insurance and risk management elements to Timbersure customers, while LDPA Credits Insurance Brokers will handle all credit insurance matters and Charcol Holden & Meehan will manage all life and pensions requirements. Each company has a full working knowledge of the timber industry, enabling them to identify main areas of risk, reduce exposure and arrange specific, relevant cover.

By working hand-in-hand with current and potential clients, the Timbersure consultants identify the customer’s specific needs to tailor each insurance policy to fit precise requirements. As part of its strategy to cover all possible areas, Timbersure also offers related products such as marine insurance – a key area to importers where insurance industry experts are rare.

With a healthy client base of customers in the UK and Europe, Timbersure is already well known for placing cover with leading insurers that recognise its expertise and respect the judgement of its consultants. Heading up this medley of gurus is John Huckman who, with over 20 years’ experience in the industry, played a pivotal role in the set-up, running and expansion of Timbersure.

Dangers

So what perilous pitfalls do Timber Trade Federation members need to be aware of? Keith Johnson, director of Linaker (Western) Ltd, explained: “First and foremost, members of the Timber Trade Federation must realise that risk can never be entirely eliminated; therefore it must be effectively managed. As no two timber related businesses are identical, specific dangers and attitudes towards them will vary. In order to ensure success a company must strategically address the issue of risk so that a clear and concise overview can be produced.

“The second step of the process is to consider risk transfer by approaching an appropriate insurance specialist. This is where the Timbersure consultants take over. By bringing together various risk control measures, the team can work with the company to produce an individually considered approach to all areas of risk management.”

&#8220In some extreme circumstances, a small minority of companies are choosing not to insure at all. These people will inevitably fall foul of the law”

One of the most prevalent areas of risk that, by law, has to be insured is Employers’ Liability, however, during the past there has been a sharp decline in the availability of cover and policies, said Mr Johnson.

“Previously all insurance companies relied upon investment income to bolster their underwriting income for the payment of claims. This created a situation that was mutually convenient for all concerned parties,” he said. “Then came the well-documented collapse in the financial markets and, as a result, investment income has almost disappeared. Added to this is the recent boom in legal companies offering ‘no win no fee’ packages to encourage people to claim against their employers or previous employers. The result is that many insurers found it necessary to completely review their Employers Liability insurance portfolio.”

Increased premiums

Some found that with such dramatic losses they had to pull out of the market completely while others deemed it necessary to significantly increase premiums.

“This makes it very difficult for business owners to find competitive, affordable rates and, in some extreme circumstances, a small minority of companies are choosing not to insure at all. These people will inevitably fall foul of the law,” said Mr Johnson.

This is why Timbersure has been developed, launched and endorsed by the Timber Trade Federation.

“The team can use all its contacts with and throughout the insurance arena to ensure they introduce informed insurers to your risk portfolio,” said Mr Johnson. “Insurance is a complex area and it pays to have industry experts on your side, especially when they have the added endorsement of the well-respected Timber Trade Federation.”