Riggers Liability Coverage: A Comprehensive Guide

Riggers liability coverage is a specialized insurance policy designed to protect riggers and their businesses from financial losses due to accidents or damages.

Riggers are at high risk of accidents and injuries on the job, with a 1 in 5 chance of being injured in a rigging-related accident. This is because rigging work often involves heavy lifting, working at heights, and using complex equipment.

Riggers liability coverage can help cover the costs of medical expenses, lost wages, and other related damages if a rigger is injured on the job. This can be a lifesaver for small business owners who may not have the financial resources to absorb such losses.

The cost of riggers liability coverage varies depending on factors such as the type of equipment used, the number of employees, and the location of the business.

Some insurance carriers will add a Riggers Liability endorsement to the General Liability policy, but it's essential to review the scope and limit of coverage. This endorsement varies in scope and limit of coverage.

You'll want to check the limits of insurance, which include limits for property in transit, property at any one job site, and all covered equipment in any one occurrence. These limits cap the amount paid in a single occurrence.

Here are the key limits of insurance to review: While at Any One Job SiteProperty in TransitAll Covered Equipment in Any One Occurrence

It's also crucial to note that payments under Additional Coverages, such as Preservation of Property and Debris Removal, do not increase the limit of insurance that applies. However, there is an additional per occurrence of $10,000 available in certain situations.

Form Analysis is crucial to understanding what's covered and what's not under your policy. This is where you'll find the ins and outs of your coverage.

The Riggers Liability Coverage Form Analysis, specifically, is a detailed breakdown of what's included in your policy. It's essential to read this section carefully to determine what's covered, what's not, and your rights and duties.

This analysis defines key terms, such as "we", "us", and "our", as the insurance company providing the coverage. It also defines "you" and "your" as the named insured on the declarations.

The analysis points you to the Definitions section, where certain words or terms have a broader or restricted meaning. This is where you'll find clarity on any ambiguous language.

The 12-13 edition of the Riggers Liability Coverage Form Analysis includes changes from the previous edition, which are highlighted in bold print.

The limit of insurance is a crucial aspect of your policy. It's the maximum amount the insurance company will pay for a single occurrence of loss or damage.

This limit applies to various situations, including damage at any one job site, property in transit, and covered equipment in any one occurrence.

The limit of insurance is capped at a certain amount, which is stated in the declarations. This means that even if you have additional rigging equipment or increase the limit at any one job site, the overall limit remains the same.

Some additional coverages, like preservation of property and debris removal, do not increase the limit of insurance. However, if the sum of direct physical loss or damage and debris removal expense exceeds the limit, you may be eligible for an additional $10,000 in any one occurrence under the debris removal additional coverage.

Here are some specific situations where the additional $10,000 applies:

In both cases, the additional $10,000 is limited to only debris removal expense and cannot exceed $10,000.

The deductible is a crucial aspect of your policy, and it's essential to understand how it works.

The amount of the adjusted loss or damage must exceed the deductible before the policy pays.

Think of it like this: if you have a $500 deductible and you file a claim for $1,000 in damages, the policy will only pay out $500, not the full $1,000.

Once the deductible amount has been reached, the policy will pay the amount of the adjusted loss in excess of the deductible, up to the limits of insurance.

This means that even if you have a high deductible, the policy will still cover the costs of the loss or damage, but only after you've paid the deductible amount.

Some insurance carriers will add a Riggers Liability endorsement to the General Liability policy, but this varies by provider and policy.

Coverage under a Riggers Liability policy typically includes property in the care, custody, or control of the rigger that's being moved or installed.

Riggers liability insurance will defend the insured and pay a claim if the insured is found to be liable for alleged damage.

Property worth hundreds of thousands of dollars, such as air conditioning units, telecom equipment, and generators, can be covered under a Riggers Liability policy.

A Riggers Liability policy can be a vital safety net for contractors who use cranes or machines for lifting property or installing equipment.

Policy types play a crucial role in rigger liability coverage.

There are two main types of policies: Occurrence and Claims-made.

An Occurrence policy covers incidents that happen during the policy period, regardless of when the claim is filed.

A Claims-made policy, on the other hand, covers claims filed during the policy period, regardless of when the incident happened.

It's essential to understand the difference between these two types to ensure you have adequate coverage.

Rigger liability insurance and installation floater policies have distinct differences in coverage.

Installation floaters are often used in the construction industry for permanent installations.

Riggers, on the other hand, are typically setting equipment into place, not installing it.

This difference in definition can lead to gaps in coverage for rigging companies.

A 6 or 7 figure claim could be at risk if a court disputes the coverage.

If you're unsure about the right insurance plan, consider consulting a broker who specializes in riggers liability.

Insurance companies assess the risk associated with the rigging operations and the insured's experience, safety protocols, and track record. This evaluation determines coverage and premium rates.

Riggers liability coverage may be a mandatory requirement in some jurisdictions or contractual agreements. Compliance ensures that rigging professionals have the necessary coverage to protect themselves and third parties.

We determine the specific coverage requirements for your rigging operations, considering factors such as the size of your business, the types of equipment used, the scope of projects undertaken, and any contractual or regulatory requirements.

Here are some factors that insurance companies consider when evaluating your rigging operations:

Policy Documents are crucial for riggers liability coverage, and here's why: they help establish the scope of work, responsibilities, and expectations for both the rigger and the contractor.

A well-drafted policy document should outline the rigger's qualifications, experience, and certifications, as well as their equipment and personnel.

For example, a rigger may be required to have a valid certification from a recognized industry organization, such as the International Association of Rigging and Scaffolding (IARS).

This certification ensures that the rigger has the necessary knowledge and skills to perform the job safely and efficiently.

Policy documents should also specify the types of equipment and materials to be used, as well as the procedures for handling and storing them.

This helps prevent accidents and injuries caused by equipment failure or misuse.

In the event of an accident or incident, policy documents can be used to determine liability and responsibility.

A clear and concise policy document can help resolve disputes and claims quickly and fairly.

The limit of insurance is the most the insurance company pays for loss or damage in a single occurrence, as stated in the declarations for the applicable coverage.

This limit applies to all covered equipment in any one occurrence, regardless of the job site or property in transit.

The preservation of property and debris removal additional coverages do not increase the limit of insurance.

However, if the sum of direct physical loss or damage and debris removal expense is more than the limit of insurance, the policy pays an additional $10,000 in any one occurrence under the debris removal additional coverage.

If the debris removal expense is more than the 25 percent limitation, the policy also pays an additional $10,000 in any one occurrence under the debris removal additional coverage.

Here are some key points to keep in mind about policy limits and costs:

It's essential to review the limit of insurance whenever additional rigging equipment is added or the limit at any one job site is increased, to ensure you understand the coverage and any potential limitations.

Policy exclusions are a crucial aspect of riggers liability coverage, and it's essential to understand what's not covered under the policy. Ordinance or law, governmental action, and war and military action are all excluded, regardless of the extent of the damage.

These exclusions can be triggered by the enforcement of an ordinance or law that requires property to be torn down, destruction or seizure by government order, or war-related events. This means that if a rigger's work is affected by a government order or a war, the policy won't cover the resulting losses.

Delay, loss of market, loss of use, or any other consequential loss is also excluded, as well as dishonest or criminal acts committed by the rigger or their employees. Additionally, artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances, or wires is excluded, unless a fire results and the fire would be covered by the policy.

Exclusions are a crucial part of any insurance policy, and it's essential to understand what's not covered to avoid any surprises down the line.

Ordinance or law exclusions are a common type of exclusion, which means that if a law or ordinance requires a property to be torn down, the insurance company won't cover the costs.

Governmental action, such as destruction or seizure by government order, is also excluded, but action taken by authorities to prevent a fire from spreading is covered if the fire itself is covered.

Nuclear hazards, including nuclear reactions or radiation, are excluded, but fires caused by these hazards are covered if they would be covered by the policy.

War and military action, including undeclared and civil wars, is excluded from coverage.

Delay, loss of market, loss of use, or any other consequential loss is also excluded from coverage.

Dishonest or criminal acts committed by the insured or their employees, such as theft or destruction of property, are excluded from coverage.

Artificially generated electrical current, including electric arcing, that disturbs electrical devices or appliances, is excluded from coverage, unless a fire results.

Unauthorized instructions to transfer property to any person or place are also excluded from coverage.

Neglect to use reasonable methods to preserve and save property can also result in exclusions.

Wear and tear, depreciation, and latent or hidden defects are all considered exclusions, including breakdowns, failures, or malfunctions of covered property.

Loss or damage expected or intended by the insured is also excluded from coverage.

Riggers liability insurance may provide coverage for errors and omissions committed during rigging operations. This can include situations where mistakes are made in the rigging process, resulting in damage or accidents.

As you underwrite a policy, consider the potential risks involved in rigging operations. Riggers liability insurance can help mitigate these risks by providing coverage for errors and omissions.

The type of equipment used in rigging operations can also impact policy exclusions and considerations. For example, the use of heavy machinery or specialized equipment may require additional coverage or endorsements.

In some cases, policyholders may be required to provide proof of compliance with industry standards and regulations. This can include documentation of training, certifications, or adherence to industry best practices.

Equipment failure can be a costly and potentially disastrous event, especially in industries that rely heavily on machinery and equipment.

Coverage for equipment failure can extend to cranes, hoists, slings, or other rigging equipment, which can help protect against liability claims resulting from equipment malfunctions or accidents.

Equipment failure can occur due to a variety of factors, including wear and tear, improper maintenance, or manufacturing defects.

This type of coverage can be especially important for businesses that operate heavy machinery, as equipment failure can result in costly repairs, downtime, and even injuries or fatalities.

In some cases, equipment failure may also lead to business interruption, which can have a significant impact on a company's bottom line.

Riggers liability insurance typically covers property in the care, custody, or control of the rigger that is being moved or installed.

Coverage varies by provider and policy, but it's essential to understand what's included in a rigger's liability policy. The policy will defend the insured and pay a claim if the insured is found to be liable for the alleged damage.

The property being moved or installed is the primary focus of rigger's liability insurance. This includes property that is taken into possession by the rigger and provides a specific limit of coverage for that property.

Riggers liability can also be designed to cover resulting losses that come from damage to the physical property. For example, if a machine was damaged that cost $100,000 but the machine was not able to be replaced for 6 months, the company using the machine may expect to receive $10,000 per month in production in addition to the $100,000 for the machine replacement.

A rigger's liability policy can be tailored to provide adequate coverage for the property being moved or installed. Various limits of liability can be obtained by the rigging company to ensure they are not "on the hook" for additional costs.

Riggers liability insurance often comes with additional coverage options that can be tailored to your specific needs.

Equipment breakdown coverage can be added to protect against unexpected failures of equipment, which can be a significant expense to repair or replace.

Installation floaters provide coverage for equipment installed on a project, which can be a valuable addition if you're working on a high-value or high-risk project.

Transportation of equipment can also be covered, which is especially important if you're transporting heavy or expensive equipment over long distances.

Endorsements can be added to cover specific risks or projects, giving you peace of mind and financial protection in case something goes wrong.