Do Firewood Sellers Need Insurance? A Guide for Indiana, Illinois, and Michigan Firewood Businesses

If you sell firewood for money, especially if you deliver it, you need business insurance. The most important policies are commercial auto for delivery, general liability for property damage and injuries, and equipment coverage for your splitter and saws. Homeowners insurance typically won't cover a firewood business, even a small side gig.

Firewood is a classic Midwest side business. Once the first cold snap hits in Indiana, Illinois, and Michigan, the calls start coming in. A lot of sellers start small, maybe a few cords off a trailer, and before they know it they're running a real operation. That's usually when the insurance gaps show up.

Does homeowners insurance cover a firewood side business?

Usually not. Most homeowners policies exclude business activity, so if a customer gets hurt picking up wood at your house, or your splitter is damaged, you may be on your own. Some carriers offer a home business endorsement, but those often have tight limits and may not cover delivery at all.

Do I need commercial auto for firewood delivery?

Yes. This is the one we push hardest. If you're hauling loads in your pickup or with a trailer, that's business use. A personal auto policy can deny a claim if you're in an accident while delivering. Commercial auto insurance covers your truck, your trailer, and your liability on the road. Heavy loads, winter roads, and backing into tight driveways add up to real risk.

What if a delivery damages a customer's driveway or yard?

This happens more than you'd think. Cracked driveways, crushed landscaping, a dinged garage door. General liability insurance is what covers damage you cause to a customer's property while doing the work. It also covers injuries, like a customer tripping over a log you stacked.

Is my splitter and equipment covered?

Not unless you have the right coverage. Inland marine or tools and equipment coverage protects gear like log splitters, chainsaws, and trailers against theft and damage, whether it's at your place or out on a job.

Do I need workers' comp if a buddy helps out?

If you're paying someone to help split, load, or stack, you may need workers' compensation. Splitters and chainsaws cause serious injuries. Indiana, Illinois, and Michigan each set their own rules for when coverage is required, so it's worth asking before the season gets going.

Are there rules about moving firewood?

Yes. Invasive pests like the emerald ash borer have led to firewood movement guidelines in the Midwest, and Michigan in particular encourages buying and burning firewood locally. Rules can change, so check with your state's department of agriculture or natural resources before hauling wood across county or state lines.

Let's Keep Your Side Hustle Protected

Firewood can be a great source of extra income, as long as one accident doesn't wipe it out. Our team has been helping Midwest businesses of all sizes for generations, and we'd be glad to help you figure out what you actually need. Reach out anytime.

Disclaimer: This article is provided by Shurr Insurance Agency for general informational purposes only and does not constitute insurance, legal, or financial advice. Coverage availability, terms, and requirements vary by carrier and state. Please contact Shurr Insurance Agency to discuss your specific situation.