Riggers Liability

Riggers Liability – Coverage for Moving Heavy Equipment

In plain language: Riggers Liability is a type of insurance coverage that provides protection for any property damage or loss that occurs while a business is moving someone else's property. Think of it as a safety net for businesses that handle or relocate heavy equipment. 

Technical definition: Riggers Liability is a specialized type of coverage often included as an endorsement to an Inland Marine policy or a Commercial General Liability policy. It covers the legal liability of a business (like crane operators or building contractors) for physical damage to property of others in their care, custody, or control while providing lifting services. 

Imagine running a construction business that needs to transport a million-dollar piece of machinery. Suddenly, an accident happens, causing damage to the machine. Without the right coverage, your business could be held liable. 

TL;DR

Riggers Liability is insurance for when you're moving or lifting someone else's property and something goes wrong. 

Essential for businesses involved in rigging, it needs to be part of your risk management strategy due to potential liability lawsuits. 

A common pitfall is assuming your general liability insurance covers these incidents — it often doesn't. 

For adequate coverage, talk to insurance specialists about adding a Riggers Liability endorsement to your insurance portfolio. 

What Is Riggers Liability in Insurance?

In the insurance industry, "riggers liability" refers to a specific coverage that protects businesses that handle, move, or store someone else's property — especially during lifting or rigging operations. This coverage is typically used by businesses like building contractors and crane operators. 

Riggers liability insurance is often included as an endorsement to an Inland Marine policy or standalone coverage in certain cases. Essentially, riggers liability insurance covers the legal liability of a contractor for physical damage to property that is under their care, custody, or control during rigging operations. 

One common misunderstanding is that workers compensation or general liability insurance would cover these instances. However, these types of policies often specifically exclude coverage for property in the care, custody, or control of the insured, making specialized riggers liability critical. 

This coverage is connected to broader concepts of liability and property insurance and is crucial, especially when an installation floater may not provide adequate protection for property in transit or during lifting and rigging operations. 

Key Related Terms to Know

Crane Insurance – Coverage that provides protection specifically for crane operations, often inclusive of riggers liability. 

Installation Floater – Insurance for property (often equipment) which is to be installed or erected, covering it wherever it is located until installation is complete. 

Inland Marine Policy – Covers a variety of specialized property risks, often including riggers liability and installation floater coverage. 

Liability Protection – Insurance that provides coverage for legal liabilities due to injury or property damage. 

Property Damage – Damage incurred to physical property, which riggers liability insurance covers if caused while under the care, custody, or control of a policyholder. 

Common Questions About Riggers Liability

What is included in Riggers Liability insurance? 

Riggers liability insurance provides coverage for damage to property that a business is responsible for handling or moving. This can include, but is not limited to, damage caused by dropping a piece of equipment, damage caused during transportation, or damage due to improper rigging procedures. 

What businesses typically need Riggers Liability Insurance? 

Businesses that move, store or have the responsibility for property owned by third parties often need this coverage. Some examples include rigging contractors, cranial and heavy equipment operators, and building contractors who often handle expensive equipment and machines owned by their clients. 

Are Riggers Liability and General Liability the same? 

No, Riggers Liability and General Liability are not the same. General Liability Insurance typically excludes coverage for property in the care, custody, or control of the insured, causing a gap that Riggers Liability Insurance fills. 

Who is most affected by errors in Riggers Liability Insurance? 

Businesses that regularly handle, transport, and store heavy machinery are most affected. Inadequate riggers liability coverage can lead to significant financial losses in the event of equipment damage, especially if the property in question is highly valuable. 

Riggers Liability vs. Installation Floater

Riggers liability and an installation floater might seem similar, but they provide coverage in different situations. An installation floater typically provides protection for contractors' property being installed at a jobsite, while riggers liability covers property damage for items being moved or lifted that are in the contractor's care, custody, or control. 

Real Claim Examples Involving Riggers Liability

Scenario 1: A crane operator is moving a massive air conditioning unit onto the roof of a client's building. The unit slips from its rigging and falls, damaging the HVAC unit and the roof. The riggers liability coverage helps pay for the damages. 

Scenario 2: A rigging contractor is transporting an expensive piece of mining equipment to a location. During transit, the truck is involved in an accident that damages the equipment. The riggers liability insurance kicks in, covering the cost of repairs.

Scenario 3: A building contractor is lifting a heavy piece of machinery to an upper level of a construction site using a hoist. During the lift, the machine swings and collides with a structural pillar, causing damage. The riggers liability policy on the contractor's insurance portfolio covers the repair cost of the pillar and the machine. 

Limitations and Common Mistakes

Riggers liability does not cover damage to the rigger's own property. 

It's not automatic with general liability or workers' comp policies. You need to add it explicitly. 

It might not cover damage during transit – talk to your insurer about inland marine policy or installation floater coverage. 

Undervaluating the property you're moving, leading to inadequate coverage. 

Not realizing it may need to be standalone coverage for larger, riskier operations. 

How to Explain Riggers Liability to Clients

Personal Lines client "Think of Riggers Liability like a protective blanket for your valuable items when they're being moved or worked on by another business. If something happens to your item, Riggers Liability is there to cover the damage." 

Small Business owner "Riggers Liability is a must if you're moving any heavy machinery or equipment. It covers any damage that might occur during the move, protecting you from costly out-of-pocket expenses." 

CFO or Risk Manager "Riggers Liability enhances our risk management by covering us in case any damage happens to a third-party's equipment while we're moving or lifting it. It helps to make certain we won't face unexpected financial losses due to these risks."