Norwest NSW
Timber Yard Insurance
A timber yard is a lot of stock, a lot of space and a lot of things that burn. Packs of framing timber stacked under cover and out in the open, sawdust in the corners, forklifts moving all day, trade customers loading ute trays and trucks heading out on deliveries.
Insurers look at that and see a higher fire risk, big sums insured and plenty of ways for someone to get hurt. A standard shop policy won't fit it. Timber yard insurance is built around how yards actually work.
Looking for a local broker? Talk to insurance brokers in Norwest about timber yard cover.
Who it suits
Cover for timber and building supply yards
Hardware and trade suppliers who hold timber
Sawmills, treatment plants and milling businesses
Merchants who cut, dress or machine timber on site
Businesses that deliver timber to builders and tradies
What it can cover
- Buildings and sheds. Warehouses, showrooms, offices and covered storage.
- Stock. Timber, sheet products, hardware and treated timber, covered or in the open yard, with limits that matter.
- Fire. The main risk for most yards, including damage from smoke and water used to fight it.
- Forklifts and mobile plant. Damage, theft and fire, which are often excluded from standard property covers.
- Machinery and breakdown. Saws, planers, moulders, dust extraction and other fixed machinery.
- Theft and break-in. Stock, tools and equipment, including from the yard.
- Storm, wind and flood. Particularly for stock kept outdoors.
- Goods in transit. Timber on your own trucks or being delivered to customers.
- Public liability. A customer, driver or visitor is hurt, or their vehicle or property is damaged, on your site.
- Product liability. A product you supplied fails or is unsuitable, and causes loss.
- Business interruption. Lost profit while you can't trade after an insured event.
- Workers' compensation. For your staff. This is compulsory if you employ people.
What to check
- Stock kept outside. Many policies limit or exclude stock stored in the open yard, or treat it differently for storm and theft. Ask exactly what applies.
- Fire conditions. Insurers usually ask about housekeeping, sawdust management, electrical maintenance, extinguishers, hydrants and sprinklers. If you don't meet the conditions, a fire claim can be reduced or declined.
- Hot works. Welding or cutting on a timber site needs strict controls. See our Hot Works page.
- Stock value and peaks. Make sure the sum insured reflects replacement cost during your busiest periods. Timber prices can move quickly.
- Forklifts and mobile plant. Make sure each one is listed and covered for the way you use it.
- Delivery vehicles and crane trucks. Vehicles are insured separately, and the load needs its own cover. See our Goods in Transit page.
- Customer loading. Check that your liability cover responds to customer and contractor injuries and vehicle damage in the yard.
- Advice and supply. If your staff recommend products or spans, check how your product liability and professional advice cover applies.
Case study
An example
A fire starts overnight in a dust extraction unit at the back of a timber yard in Sydney's north-west. It spreads to the covered storage shed and the stock inside. The building, the machinery and about $350,000 of stock are damaged. The yard is closed for weeks. If the policy includes fire, machinery and business interruption, and the yard met its fire safety and housekeeping conditions, the claim can respond to the repairs, the stock and the lost profit. If the insurer finds the dust extraction hadn't been maintained as the policy required, the claim could be reduced or declined.
Illustrative example only. Cover depends on your policy wording.
Contact us
To put a quote together, we'll ask about:
We're based at Suite 2.02, 2-8 Brookhollow Ave, Norwest NSW. Call 02 8660 2305 or email admin@idealbrokers.com.au.
Welding or cutting on site? Review our hot works page alongside your yard cover.
Ideal Insurance Brokers, Norwest NSW 2153. Ideal Brokers Pty Ltd (CAR No. 001262504 | ABN 65 623 205 952) is a Corporate Authorised Representative of Metrix Connect Pty Ltd ACN 635 286 136 as the trustee for the Metrix Connect Hybrid Trust ABN 55 742 327 931 | AFSL No. 525491. This page contains general information only and does not take into account your objectives, financial situation or needs. Read the Product Disclosure Statement before buying.
Timber yard insurance FAQs
Only if the policy says so, and often with a lower limit. Tell us how much sits in the open yard and we'll look at your options.
Usually not. Forklifts and mobile plant normally need to be listed or covered under a plant section.
That's public liability. Check that your limit suits the risk and the policy doesn't exclude loading activities.
That's product liability, and it depends on the wording and what's excluded. Tell us what you supply, including treated and structural timber.
Yes. Your vehicle policy covers the vehicle. The timber on it needs goods in transit cover.
Timber yards are a higher fire risk, so premiums can reflect it. Good housekeeping, fire protection and security can help. We'll show you what insurers want to see.
Insurers look closely at dust. We'll explain what yours says and what controls they expect.