Navigating the Crane and Rigging Market - What to Look for When Choosing a Carrier

The current crane and rigging insurance sector is experiencing a transformation. This stems from many factors, not the least of which is the significant impact of claims in this field, which present a challenging but manageable landscape for insurers. With capacity limited, those carriers remaining are selective in deciding which businesses to insure and pricing them according to their risk profile. As the market continues to adjust, it becomes more important than ever to work with an agent and carrier that can help you gain a deeper understanding of your coverage needs and risk profile to help you navigate through this market.

The insurance market offers a select number of specialized programs that focus on crane and rigging solutions. In this niche space, insurance programs often consist of multiple insurance carriers within the same program, each taking a part of the risk. While this can be advantageous if all carriers remain committed to the program, it can also provide a challenge to these programs when carriers leave.

Working directly with a stable and non managing general underwriter (MGU) program carrier has many benefits. Above all, you get the direct claims, risk control and underwriting expertise of a carrier committed to the industry that knows how to protect your business by offering comprehensive coverage, claims expertise, risk management advice necessary to protect your business, and more certainty around your cost of risk. Direct carriers also have local authority to speed up the quote/bind and other services critical to servicing clients in this market.

Staying informed about the insurance market is also critical. Not every crane and rigging program offers the same value to every business. This is where a dedicated and independent insurance agent and broker can make a real difference in helping you decide which carrier is best for you and which program will offer stability and a commitment to the industry.   Together, a dedicated broker and carrier will offer you the most for your cost of risk. The right broker will help you improve your risk profile and tell you if your current insurance program cost is in line with today’s market.

What should you look for when deciding which insurance program is right for you? Five key considerations are:

• Niche Market Underwriting Expertise: Look for a carrier with highly experienced underwriters that are specifically dedicated to and have developed expertise in the crane and rigging space. A carrier with specialized knowledge will be more adept at tailoring policies to suit the specific coverage requirements of your business. A carrier who is familiar with the industry, a member of the Specialized Carriers & Rigging Association (SC&RA), and active in industry events stays in tune with the shifting needs of the crane and rigging market. Also, a carrier that has a long history supporting crane and rigging over time will have a better understanding how to price risk through challenging times.
• Industry Knowledge: Partnering with carriers that not only understand the insurance industry, but also understand the implications of the contracts you and your clients sign are better able to advise how to improve risk management, especially when clients are signing business contracts or having others sign contracts on behalf of the business. Does your current carrier offer access to expert outside contract advice as part of their program?

• Dedicated Claims: Evaluating a carrier’s claims process and support system is key. Experienced claims departments can make or break a business, especially in the event of a large claim. Prompt and efficient handling of claims is imperative. Ensure the carrier has a reputation for high quality claims resolution.
• Stability and Longevity in The Market: Everyone wants as much certainty as possible when it comes to the cost of risk. When clients are bidding on future jobs that may not start for another 12 or 24 months, changing insurance costs today can impact future profitability. Partner with a carrier who has a stable pricing record and does not have a reputation of volatility.
• Partner With Agents and Wholesalers Knowledgeable in this Niche Market. Since the crane and rigging insurance market is truly a niche market, specialty agents and brokers who work with crane and rigging businesses every day are often the best equipped to understand your coverage needs and the market and how best to improve your risk profile. Trust them to guide you.

The crane and rigging insurance market continues to evolve. Partnering with a stable and committed broker and carrier will put you in the best position to improve your risk profile and control your cost of risk today and in the future.