Crane Disasters Could Impact Inland Marine Premiums, May Result in Uniform Certification Standards

In recent months, it seems as though we have been hearing about one crane disaster after another. Two accidents have occurred in New York, with the most recent having occurred last week when a tower crane on the Upper East Side snapped from its turntable some 200 feet above street level, causing its cab, boom and machine deck to fall south and crash into an apartment building across the street. The other most recent crane accident occurred in northeastern Wyoming just last weekend at a coal mine, and in Miami, Florida in March at a condominium site.   
  
What’s going on? And will this have a significant impact on the insurance industry?   
  
Programbusiness spoke to Marty O’Brien, president of Allied Insurance Brokers, a nationwide provider of insurance programs for the crane industry for more than 15 years, about the recent disasters and what this means for the insurance sector.   
  
”I think the impact of these accidents could affect the Inland Marine policies from an insurer interest in this class of business,” says Marty. “Carriers will be looking at their experience and evaluating whether the pricing structure is adequate or whether they want to continue to provide coverage to this type of exposure.”   
  
According to Marty, nothing different has occurred in the crane industry to precipitate these disasters. It is not due to a lack of loss control or effective risk management within the crane industry. It appears that operator error has not been the theme of these recent losses.   
  
“When you are dealing with larger tower cranes, it involves a very complex construction site so when an accident does occur, it’s on a grand scale and more serious,” says Marty. The two New York crane accidents were high-profile because of their location and the fact that the city has been undergoing a boon in construction in the last several years. There are an estimated 200 cranes dotting the landscape of Manhattan. “Part of the phenomenon could be due to increased construction activity, but again not specifically due to the crane operator or machine,” observes Marty.   
  
The crane industry by and large is inherently very safety-conscious. There are crane-safety training and certification standards, but they differ from state to state. “The industry is moving forward with more and more rigid certification standards of cranes and operators,” says Marty. “The latest rash of accidents could well accelerate a trend to uniform certification throughout the industry.”   
  
Licensed in 49 states, and founded in 1982, Allied focuses on providing insurance programs exclusively for crane, scaffold and rental equipment industries. Allied offers in-house underwriting and serves retail agents and brokers. For additional information, go to: www.alliedforbrokers.com.