Key Insights into Riggers Liability Insurance for Your Business

Riggers liability insurance is designed to mitigate the risks contractors face when handling a client’s property. The typical General Liability coverage, common among businesses in the United States, explicitly excludes damages to property under the “care, custody, or control” of the insured. Given the nature of their work, riggers inherently assume this responsibility as they handle others’ property during their operations.

Riggers Liability insurance is specifically tailored to protect the property held by the rigger, offering a specified coverage limit for that property. Rigging companies have the flexibility to acquire varying levels of liability coverage to adequately safeguard the property they handle. Furthermore, Riggers liability insurance can be customized to encompass losses resulting from physical property damage. 

For instance, if a machine valued at $100,000 is damaged and takes six months to replace, the company reliant on the machine may anticipate compensation not only for the $100,000 replacement cost but also for potential production losses, amounting to $10,000 per month. This coverage option enables rigging companies to mitigate additional financial burdens resulting from such incidents.

Who falls under the classification of a rigger?

A rigger, a skilled contractor, utilizes cranes, pulley systems, chain hoists, and similar tools to maneuver, construct, and set up machinery.

Numerous contractors and construction workers engage in rigging operations, albeit not as their primary role. While they may offer supplementary rigging services, it doesn’t constitute their primary focus.

Any contractor frequently employing machinery like cranes for equipment movement and transportation qualifies as a rigger and should possess specialized liability insurance.

As a rigger, your essential work involves moving heavy equipment, machinery, and materials across various industries. Yet, this critical role comes with inherent risks. Accidents on-site can lead to costly legal fees, compensation claims, and vulnerabilities for your company. Riggers liability insurance is the safeguard you need, protecting both businesses and employees in unforeseen incidents. Learn more about its coverage and pivotal importance to your company in this article.

Incorporating a Riggers Liability Endorsement

Certain insurance carriers may consider adding a Riggers Liability endorsement to their General Liability policies. Endorsements come in various forms, offering differing scopes and coverage limits. Moreover, an alternative method to secure Riggers Liability coverage involves utilizing an inland marine policy.

Who Requires Riggers Liability Insurance Services?

Enterprises engaged in rigging operations should invest in riggers liability insurance. This encompasses firms participating in:

Handling the transportation of heavy equipment, machinery, and materials; assembling and disassembling scaffolding structures; installing and dismantling temporary constructions like tents or stages; and transporting heavy items on public roads expose your business to potential liabilities. Damages or injuries resulting from these activities could lead to substantial legal liabilities, incurring significant legal expenses. Riggers liability insurance serves as a crucial means of financial and legal protection in such instances.

If your workforce frequently utilizes cranes for relocating external air conditioning units, oil and gas equipment, generators, or similar property belonging to others, it’s highly probable that you require crane and rigging insurance. While your existing policies like builder’s risk or inland marine might offer partial coverage for equipment damage, rigging contractors typically necessitate riggers liability coverage for comprehensive protection.

Riggers liability insurance: What does it entail for crane and rigging operations?

Riggers liability insurance safeguards construction firms involved in crane operations, covering crane setup, movement, and usage, encompassing various crane types.

  • Insurance for operators of boom trucks
  • Insurance coverage for operators of mobile and tower cranes
  • Insurance coverage for crane inspectors and lift directors
  • Insurance for heavy haul trucking operations
  • Insurance coverage for service truck crane operations

Who needs riggers liability insurance for crane and rigging coverage?

Common candidates for riggers liability insurance include construction companies involved in crane rentals with operators. Additionally, licensed operators and rental firms providing cranes without operators require this coverage. Regrettably, some contractors mistakenly believe they possess adequate coverage for their construction projects.

Nevertheless, standard commercial general liability insurance policies do not extend coverage to third-party properties under your control or custody. To ensure comprehensive protection, it’s essential to incorporate riggers liability coverage into your commercial general liability policy.

riggers liability insurance

What does Riggers Liability Insurance Cover?

Riggers liability insurance provides protection against incidents associated with rigging operations. Some of the commonly included coverages encompass:

Property Damage Coverage

Property damage coverage within your riggers liability policy offers financial protection in case accidental equipment drops lead to damage to third-party properties, potentially causing collisions with nearby structures. This coverage can assist in covering repair costs arising from such incidents.

Bodily Injury Coverage

Bodily injury coverage under your riggers liability policy safeguards against scenarios such as an employee accidentally injuring another worker on a job site, like dropping equipment on them. This coverage assists in handling medical expenses and potential compensation claims arising from such incidents.

Completed Operations

The coverage offers protection against damages or injuries resulting from completed work activities.

Products Liability

Securing protection against product-related damages and injuries is crucial. Riggers liability insurance can provide essential coverage in cases of equipment malfunction leading to injury or property damage, potentially resulting in legal fees and compensation claims.

Advertising Injury Coverage

Advertising injury coverage under riggers liability insurance safeguards your business against allegations of false advertising or intellectual property infringement. For example, if your company faces accusations of using copyrighted material without permission, this liability coverage can handle legal fees and damages related to such claims.

Personal Injury Coverage

Safeguard against claims for libel, slander, or invasion of privacy by securing coverage for personal injuries such as libel and slander occurring on a job site involving your employees. In the event of defamatory comments made by an employee that lead to legal fees and damages against third parties while on-site, riggers liability insurance can provide the necessary protection.

Medical Payments

Medical payments coverage within your riggers liability policy safeguards against injuries sustained by third parties, irrespective of negligence. For example, if a non-injured individual from the public needs medical attention on your job site, this coverage can handle their medical bills.

3 Benefits of Riggers Liability Insurance Coverage

Understanding the advantages of riggers liability insurance for your business can be challenging, particularly if you already hold general liability and property insurance. However, this coverage proves beneficial in various scenarios. Here are a few key benefits of investing in riggers insurance.

1. Enhancing Job Prospects

In the fiercely competitive construction industry, securing a bid involves more than presenting a compelling proposal. Prospective property owners often seek proof of insurance coverage, specifically riggers liability, before finalizing contracts. This verification signifies your capacity to assume financial responsibility should any mishaps occur on the rigging site.

Purchasing a riggers liability insurance policy not only provides a competitive edge in bidding for new projects but also ensures protection for both you and the property owner throughout the duration of the project.

2. Safeguarding Against Financial Loss 

When operating on substantial oil and gas or commercial construction sites, the lifting of equipment valued in the seven figures is commonplace throughout project timelines. A single error could potentially result in financial losses amounting to hundreds of thousands of dollars.

Riggers insurance prevents the need to deplete your financial reserves to reimburse the property owner. Your policy covers the expenses for repairing or replacing damaged equipment, alleviating the burden of out-of-pocket expenses.

3. Preventing Costly Delays

Lack of immediate cash to cover damaged equipment expenses is a challenge for numerous companies. Without a riggers insurance policy, the process of repaying the total amount could stretch over months, leading to delays in repairing or replacing the equipment.

Having sufficient riggers liability coverage allows swift payment for damages, ensuring smooth operations at the jobsite. However, if a claim surpasses your coverage limits, you’ll be responsible for the remaining amount. Thus, it’s crucial to review and reassess your coverage after undertaking a new job.

Understanding the Cost of Riggers Liability Insurance

Determining the precise cost of riggers insurance for crane and rigging operations is challenging due to varying rates across states, especially in metropolitan areas where rates tend to be higher. Numerous factors impact the overall cost, including the insured’s financial standing, professional background, past performance, and claims history. Typically, physical damage coverage accounts for approximately 1% to 3% of the total crane value.

Final Thoughts

In conclusion, riggers liability insurance proves indispensable in the construction industry, offering protection against potential financial losses, ensuring compliance with contract requirements, and providing peace of mind during crane and rigging operations. Its coverage benefits both businesses and property owners, mitigating risks and enabling smoother project execution.

FAQS

What is riggers liability insurance?

Riggers liability insurance is a specialized coverage designed to protect businesses involved in lifting, moving heavy equipment, or rigging operations from potential financial losses due to property damage, bodily injury, or third-party liabilities.

How does riggers insurance benefit businesses?

This insurance safeguards businesses by covering costs related to damages, injuries, or legal claims arising from rigging activities, ensuring financial protection and compliance with contract requirements.

Who requires riggers insurance?

Companies engaged in crane operations, rigging, or heavy equipment movement, such as construction firms, contractors, or rigging service providers, should consider riggers insurance to mitigate risks and ensure comprehensive coverage for their operations.

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