How to Start a Logging Business: A Complete Guide
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Starting a logging business can be a lucrative venture if you understand the industry, equipment requirements, regulations, and safety standards. Logging involves harvesting timber from forests and selling it to sawmills, paper companies, or lumber distributors.
At Wexford Insurance, we help logging and forestry businesses secure the right insurance coverage, so you can operate safely and protect your equipment, employees, and revenue.
Step 1: Research the Logging Industry
Before starting, understand the market, including:
Types of timber in demand (hardwood vs. softwood)
Local and regional timber prices
Environmental regulations and harvesting restrictions
Potential clients, such as sawmills, paper mills, and landscaping companies
Learn more about the timber industry at the US Forest Service.
Step 2: Develop a Business Plan
A solid business plan outlines:
Startup costs and funding sources
Target markets and client acquisition strategies
Equipment and staffing needs
Risk management and insurance coverage
Growth plans and financial projections
A detailed business plan helps secure loans and attract investors while guiding your day-to-day operations.
Step 3: Obtain Required Licenses and Permits
Logging is heavily regulated, and you will need:
Business License – Register your business as an LLC, corporation, or sole proprietorship.
Timber Harvesting Permits – Required in many states to harvest timber legally.
Environmental Permits – Protect local ecosystems and comply with state regulations.
Step 4: Purchase Essential Equipment
Logging requires specialized machinery. Start with:
Chainsaws and hand tools for smaller operations
Skidders or forwarders for moving timber
Harvesters and feller bunchers for larger operations
Trucks and trailers for transporting logs
Invest gradually—buy essential equipment first, then expand as your business grows.
Step 5: Hire and Train Employees
Skilled labor is essential for safety and efficiency.
Provide training on chainsaw use, heavy machinery, and field safety.
Ensure all employees comply with OSHA regulations.
Step 6: Secure Insurance Coverage
Logging is a high-risk business, so proper insurance is critical. Recommended policies include:
General Liability Insurance – Covers property damage and bodily injury.
Commercial Auto Insurance – For trucks and log transport vehicles.
Workers’ Compensation – Mandatory if you have employees, covering injuries on-site.
Equipment Insurance – Protects costly logging machinery.
Commercial Property Insurance – Covers your office, storage sheds, and facilities from risks like fire,
At Wexford Insurance, we specialize in logging business insurance, helping you protect your business from the unique risks of the industry.
Step 7: Market Your Logging Business
To attract clients:
Build relationships with sawmills, paper mills, and timber buyers.
Network with landowners and forestry management companies.
Advertise online and through local forestry associations.
Offer competitive pricing and reliable service.
Market Your Business with Contractor Back Office
Struggling to market your business? Contractor Back Office helps businesses build a strong brand, attract more clients, and streamline operations support.
Our Services Include:
Step 8: Focus on Safety and Sustainability
Implement safety protocols to prevent accidents.
Follow sustainable logging practices to maintain your reputation and comply with regulations.
Join forestry associations to stay updated on industry standards.
Learn more about sustainable forestry at the American Forest Foundation.
Final Thoughts
Starting a logging business requires careful planning, proper equipment, trained staff, and comprehensive insurance coverage. By understanding the industry, complying with regulations, and prioritizing safety, you can build a profitable and sustainable logging operation.
Wexford Insurance helps logging businesses protect their equipment, employees, and revenue so owners can focus on growing their operations with confidence.
Contact us today.
