Construction accidents are unfortunately a common event as evidenced by current news reports, as the whole scope of the industry, especially erecting or working on big buildings, is exceedingly dangerous.
Among some of the more serious accidents that happen on the construction site, commercial insurance agencies see crane accidents occurring with startling as evidence of just how dangerous that work can be.
Due to the nature of these accidents and their prevalence, it’s essential that contracting firms carry substantial commercial general liability insurance.
Yet according to many insurance carriers, the policies that many contractors carry provide nowhere near enough coverage for the damage potential possible.
Crane Accidents Are Damaging and Deadly
Of all the types of construction accidents possible, none are more costly to contractor companies and their commercial liability insurance providers than crane accidents.
As frequently as they happen, there have fortunately been only a relatively few fatalities; however, the fact that there have been repeated fatalities in these accidents is concerning.
In Texas alone, there have been more than 50 crane accidents in the last decade resulting in eight fatalities.
Beyond the loss of life, crane accidents are extremely costly, producing millions of dollars in damage and liability claims.
Crane accidents in the state have resulted in claims of $50 million or more after physical damage, injuries, and fatalities have been tallied.
Cranes Accidents Are Complex Events
What makes these accidents even more complicated for crane companies and commercial liability insurance agencies is that one accident typically involves many parties.
Accidents affect the construction company, the property owner or owners, the crane owner or leasing company, those injured in the accident, the displaced parties who must vacate a property when it’s damaged by a crane failure, and potentially many others.
Once all involved parties are named and the cost of the damage is calculated, it’s necessary to then determine where liability lies and who is responsible for what amount of damage or injury.
The liabilities can be immense.
Most Crane Companies Don’t Have Enough Coverage
What is the biggest problem with crane accidents?
Historically, based on the complexity and cost associated with even a minor crane accident, most construction companies do not have anywhere near enough commercial liability insurance to protect them from the claims of those suffering damages when accidents occur.
Too many companies rely on the limits of their policy, thinking that coverage of $10 million is more than enough ;when in reality, it may barely scratch the surface if a serious accident occurs.
Companies that operate cranes need supplemental coverage such as an Excess Liability policy specifically designed to cover these types of accidents.
These policies are activated once standard policy limits are exhausted, protecting not just those injured or financially damaged by such accidents, but the crane company itself.
Crane Contractors Need Extensive Commercial Liability Coverage
No matter what type of construction your business does, purchasing enough of the right type of commercial general liability insurance must be a priority.
If your company uses cranes in any capacity, that need is even greater.
Before raising your crane again, talk to an experienced commercial liability insurance agency and be certain that your business has the right general and enough excess coverage necessary to protect all parties in the event of a serious crane accident.
They happen a lot more than expected, so being prepared for that ‘just in case’ moment is critical to the livelihood of your company!