Jones, Jr So. Court of Appeal of Louisiana, Second Circuit. Ashe, Alexandria, for plaintiff-appellant. Samuel Thomas, Tallulah, for defendant-appellee.
Comments Already reeling from two tragic mill explosions, British Columbia sawmill operators are now grappling with soaring insurance costs, which have spiked because of the accidents and one underwriter's departure from the Canadian market.
The company found another insurer — at a higher cost than it had been paying before, and after sitting "naked" for about a week while new coverage was put together. As of Monday, both plants were running. Gray would not say how much more he's paying for insurance, but conceded it is "multiples" higher.
Two explosions in three months had put insurance brokers, underwriters and customers on edge.
Uncertainty intensified after April 30, when the Lumbermen's Underwriting Alliance — which had already served notice that it was getting out of the Canadian market — told clients it was cancelling their policies.
Last year, LUA said it was getting out of the Canadian market altogether, and would wind down its operations by the end of We could never have anticipated these losses, and they have necessitated our having to make difficult business decisions including the cancellation of a large number of policies.
After the notice, insurance might remain in effect for 15 or 30 days, depending on whether LUA was the lead insurer on a given policy, said Mr. Grant, who is based in Kamloops. The industry turmoil means sawmills are likely to face higher premiums based on factors that include location, previous insurance claims, equipment and the age and structure of plants, he said.
Story continues below advertisement "To see a per-cent increase on a good, clean sawmill operation isn't going to be unheard of," he said. There have been reports that insurance costs could rise by as much as per cent for some facilities, he said.
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In April, an explosion at Lakeland Mills in Prince George killed two employees and injured several others. Sawdust from processing dry, beetle-killed wood has been raised as a possible factor in both incidents.
After the second explosion, the province ordered mills to review sawdust buildup as part of a comprehensive safety inspection.Parties, docket activity and news coverage of federal case Carter Brothers Manufacturing Company, Inc.
v. Lumbermen's Underwriting Alliance, case number cv, from Alabama Middle Court.
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