What Does Crane Insurance Cost?
First of all, there are several different insurance policies you may be referring to when talking about crane insurance. You may be talking about physical damage to coverage the value of the crane itself, general liability which would cover the operations of the crane, auto liability which would cover a mobile crane while driving on the road, and lastly excess or umbrella liability to provide higher limits.
Physical damage covers damage to crane. Many crane leasing companies require at least $1 million in coverage to cover the value of their cranes. Most of the time this coverage is provided on an inland marine or cargo policy with it’s own limit for equipment rented. Depending on the value of the crane, you may need to increase this limit. The cost of insurance for a $1 million limit to cover rented cranes is typically based on amount of you spend each year on rentals. Rates vary by location and scope of the work, but if you consider a $4 rate to be the average and you spend $100k on rentals, then you’re looking at $4,000 in premium.
General liability covers bodily injury and property loss while operating the crane. As losses can be devastating, the cost of insurance can be quite high and also varies greatly depending on the State where you do work. Labor laws in NY generate huge lawsuits for the rigging industry, so the cost of crane insurance is much greater in the state. Loss experience is also a major factor.
If your crane has plates, then it should be on your auto liability policy. This covers damage to property and bodily injury just as if you were driving a truck.
Lastly, most jobs require excess liability or umbrella coverage which provides limits above and beyond the underlying policies. Requirements vary but usually $5 million is the minimum requirement for most jobs.
If you have any questions on crane insurance or would like a quote please give us a call.
