Marsh McLennan Agency Brings Specialized Risk Expertise to the Hardwood Industry

For hardwood businesses, insurance is not simply a line item; it is a critical part of long-term stability. From sawmills and veneer operations to pallet manufacturers, kiln yards, wood preservers, and secondary manufacturers, each segment of the wood products industry faces risks that require more than a standard insurance approach.

That is where Marsh McLennan Agency’s wood products team says it stands apart.

Rather than serving as “quoters,” the team views itself as a group of advisors and risk management partners who understand the full life cycle of a tree—from forestry and logging to primary manufacturing, secondary manufacturing, transportation, and finished building products.

“We are not the guys just looking to come out and quote your business,” said Woody Stanchina, Vice President, National Forest Products Practice, Marsh McLennan Agency. “We view ourselves as advisors and guides through the process—not just the insurance buying process, but the full circle of risk management and how these businesses operate on a day-to-day basis.”

The team includes professionals with deep backgrounds in lumber and wood products insurance through legacy brands that now operate within Marsh McLennan Agency’s national wood products practice. Kevin Mershimer, CIC, CRM, Senior Vice President with The Horton Group, a Marsh & McLennan Agency LLC company, began his career in safety and environmental work before joining Lumbermen’s Underwriting Alliance, where he worked in loss control, underwriting, claims, and marketing. He later joined The Horton Group more than a decade ago to help expand its sawmill, veneer, pallet, and wood products business, bringing specialized risk management expertise to hardwood manufacturers across the country.

The team also includes Mike McCoy of McGriff Insurance Services’ National Forest Products Practice, part of Marsh McLennan Agency, who entered the industry through a relationship with the Southeast Lumber Manufacturers Association and quickly found the work to be a natural fit.

“The people are fantastic,” McCoy said. “After spending time with the membership and learning the business, it became clear that this industry was something I really enjoyed working on.”

Beyond their insurance expertise, the group remains heavily involved in the hardwood industry itself. Mershimer served as Indiana Hardwood Lumbermen’s Association (IHLA) President in 2020 and continues to serve on the organization’s executive and finance committees, reflecting the team’s commitment to supporting the industry beyond insurance services.

Since becoming part of Marsh McLennan Agency’s broader platform, the team says its capabilities have expanded significantly. The national wood products practice now includes regional specialists, broader market relationships, a Canadian presence, and access to dedicated teams in claims, environmental coverage, analytics, risk control, and property consulting.

For hardwood companies, that depth matters. As insurance markets have tightened—especially on the property side—fewer carriers are willing to write coverage for sawmills and wood products operations. Where there were once dozens of viable markets, the team said there are now only a handful of major programs remaining in the property space.

That makes expertise and strategy essential.

“Just because another agent has access to a carrier does not mean they have the relationship, the leverage, or the understanding to place that risk correctly,” Mershimer said. “The difference is being able to read the risk and know where to put it.”

The team emphasized that sawmills and wood products facilities often face misunderstood or overlooked exposures. Cyber coverage is becoming increasingly important as production equipment becomes more connected and automated. Environmental coverage is another common gap, especially when operators assume pollution only applies to chemicals.

Business interruption coverage, inland marine issues, outdated property values, and improper equipment classification are also areas where mistakes can become costly.

“Claim time is not the time to learn what you don’t know,” McCoy said.

That experience has shaped the team’s consulting-first approach. They regularly help clients develop long-term risk improvement plans, evaluate sprinkler system return on investment, prepare for catastrophic losses, and document housekeeping, maintenance, and safety programs before carriers require them.

In one case, Mershimer helped a Northern Michigan operation reduce its premium from approximately $1 million to roughly $600,000 after working with the company for a year to improve its risk profile. In another, the team helped several veneer companies secure new coverage after a carrier exited the industry.

Their work after a loss is equally hands-on. The team said communication, preparation, and fast response are critical after catastrophic events such as fires or equipment breakdowns. In some cases, they have helped clients coordinate with other wood products businesses to keep production moving during a disruption.

“We know losses are going to happen,” Mershimer said. “So, we have those conversations early—what the backup plan is, how the claim will work, what the timeline may look like. It may sound grim, but it prepares people.”

As domestic hardwood markets remain challenging, Marsh McLennan Agency’s wood products team is also helping clients adjust coverage to fit changing business conditions. For companies that have curtailed production or would make different rebuilding decisions in a downturn, coverage may need to flex. That could mean reevaluating business interruption limits, stock values, deductibles, actual cash value options, or self-insuring certain buildings.

The goal, they said, is not simply to reduce costs; it is to ensure coverage matches the reality of the operation.

Looking ahead, the team expects carriers to place greater emphasis on fire prevention, infrared monitoring, thermographic cameras, vibration monitoring, preventive maintenance, housekeeping documentation, and other proactive risk controls. As new capacity enters the market, companies that invest in preparation may be better positioned.

“The mills that get the best rates are proactive,” Mershimer said.

“They engage with us. They communicate changes. They document what they are doing. They do not just ask for lower rates—they do the things that help earn them.”

For NHLA members, the message is clear: in a difficult market, the right insurance partner can do more than place coverage. They can help protect the business, prepare for losses, improve risk profiles, and strengthen long-term resilience.

For more information visit www.marshmma.com.