Background: Timber insurance is a form of risk management that can be used to protect forest owners from the effects of various types of disaster. Methods: A recent court ruling on a legal case in the United States is used to illustrate reasons for the lack of uptake of timber insurance and its effects on those dependent on forestry for their livelihood. Operational aspects of the timber insurance market are described and compared with markets for insurance of real estate and agricultural crops. The scope and implementation of timber insurance in several countries are reviewed, and some practical guidance is offered to those intending to develop a timber insurance programme to encourage investment in the growth of planted forests. Results: Salient features of the forest insurance market are described and the markets in a number of countries are reviewed. Conclusions: The development of timber insurance market requires some form of intervention by government or landowner associations.