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    4.A PP ShifflerIMUA2012.Session4

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    umer
    The document discusses 5 key underwriting considerations for insuring cranes: 1) The type of crane being insured, as crane types have different values, exposures, and service lives. 2) Customer safety practices and loss history. 3) Policy considerations like valuation methods and loss of use coverage. 4) Proper valuation of cranes. 5) Mitigating losses through expert assessment and controlling damaged assets. It provides details on various crane types and recommends thorough inspection and accurate valuation to effectively underwrite crane insurance.

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    4.A PP ShifflerIMUA2012.Session4

    Uploaded by

    umer
    18 views18 pages
    The document discusses 5 key underwriting considerations for insuring cranes: 1) The type of crane being insured, as crane types have different values, exposures, and service lives. 2) Customer safety practices and loss history. 3) Policy considerations like valuation methods and loss of use coverage. 4) Proper valuation of cranes. 5) Mitigating losses through expert assessment and controlling damaged assets. It provides details on various crane types and recommends thorough inspection and accurate valuation to effectively underwrite crane insurance.

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    The document discusses 5 key underwriting considerations for insuring cranes: 1) The type of crane being insured, as crane types have different values, exposures, and service lives. 2) Customer safety practices and loss history. 3) Policy considerations like valuation methods and loss of use coverage. 4) Proper valuation of cranes. 5) Mitigating losses through expert assessment and controlling damaged assets. It provides details on various crane types and recommends thorough inspection and accurate valuation to effectively underwrite crane insurance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views18 pages

    4.A PP ShifflerIMUA2012.Session4

    Uploaded by

    umer
    The document discusses 5 key underwriting considerations for insuring cranes: 1) The type of crane being insured, as crane types have different values, exposures, and service lives. 2) Customer safety practices and loss history. 3) Policy considerations like valuation methods and loss of use coverage. 4) Proper valuation of cranes. 5) Mitigating losses through expert assessment and controlling damaged assets. It provides details on various crane types and recommends thorough inspection and accurate valuation to effectively underwrite crane insurance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 18

    TOP 5 UNDERWRITING

    CONSIDERATIONS FOR CRANES


    SIMPLE STEPS TO HELP ELIMINATE
    UNCERTAINTY
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Crawler Crane
    – Long individual pieces
    of boom and jib
    – Expensive attachments
    and accessories
    – Expensive to transport
    – Boom/jib make up a
    significant part of the
    crane value
    – Maintain value
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • All-Terrain Crane
    – Highway exposure
    – Off-highway exposure
    – Boom makes up a
    significant part of the
    crane value
    – Expensive and long
    lead time parts and
    components
    – Shorter service life
    than crawler cranes
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Truck Crane
    – Taxi crane with
    extensive on-
    highway exposure
    – Requires operators
    to perform multiple
    jobs
    – Jobs may not be
    highly engineered
    – High utilization
    – Lose value over time
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Boom Truck
    – Taxi crane with extensive
    on-highway exposure
    – Requires operators to
    perform multiple jobs
    – Jobs may not be highly
    engineered
    – High utilization
    – Lose value over time
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Rough Terrain Crane


    – Work on unimproved
    job sites
    – Perform pick & carry
    duties (lift and move
    loads without using the
    outriggers)
    – Most frequently bare
    rented
    – Lose value over time
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Conventional Truck Crane


    – Being replaced by the All-
    Terrain Cranes
    – Diminishing market so
    values are going down
    – Boom become even a
    greater proportionate value
    of the overall crane
    WHAT TYPE OF CRANE ARE YOU INSURING?

    • Tower Crane
    – Are generally erected and
    operated in confined
    working areas
    – Few accidents but when
    they happen can be more
    catastrophic
    – Generally bare rented
    and have a long useful
    service life
    CUSTOMER CONSIDERATIONS

    • Loss History
    • Safety Culture
    – Do they employ only NCCCO certified operators?
    – Do they require annual defensive driving training?
    – Do they invest in and provide regular safety training?
    – Are they members of any professional crane associations?
    – Do they understand and train for compliance to the new
    OSHA standards for cranes & derricks?
    – Do they understand and train for compliance to the new
    ANSI B30 standards?
    • Facilities Audit
    • Equipment Audit/Inspecton
    POLICY CONSIDERATIONS

    • Actual Cash Value / Agreed Value /


    Replacement Cost Value
    • Loss of Use / Rental Reimbursement
    – Can it be replaced?
    – At what expense?
    • Recovery
    – Who is controlling the damaged asset?
    – Adding value or creating a larger loss?
    • Third Party Repair Provision
    – Don’t let the manufacturer/dealer be the only
    option
    POLICY CONSIDERATIONS

    • Leased & Rented Equipment


    – Risk of owning vs. renting
    • Is risk really shifting to the equipment owner?
    • Contracts are very restrictive
    – Continuing rental in the event of an accident
    – Ability to bring in third party repair option
    – Scheduling rented equipment
    • Know what you are insuring
    • Value what you are insuring
    VALUATION

    • Accurate
    • Time & market sensitive
    • Specific
    • Easy to understand
    • Cost effective to obtain
    • Acceptable to all parties
    POST ACCIDENT
    MITIGATION/SUBROGATION

    • Control the Process and the Assets by Using


    Experts
    – Recovery
    – Control assets by moving to a neutral site
    – Know and understand your options
    – Experts can help with
    • Cause and origin
    • Appraisal
    • Repair
    • Subrogation
    LOSS EXAMPLE
    • Know what you are
    insuring?
    – Insured Value -
    $230,000
    – RCV - $191,000
    – ACV - $25,000 (at best)
    – Salvage Value - $5,000
    (at best)
    LOSS EXAMPLE
    • Repair vs. Replace
    – Boom damage
    • Repair - $6,250 (5 days)
    • Replace - $189,000
    (delivery – n/a)
    – Superstructure Damage
    • Repair - $32,150 (45 days)
    • Replace -$136,000
    (delivery – n/a)
    LOSS EXAMPLE
    • Efforts to Mitigate Exposure
    – Crane rented to customer who turned it over
    – Crane owner and manufacturer worked to
    have the crane go to salvage
    – Customers insurance company fought to have
    the crane repaired
    – A compromise was ultimately reached but
    not without significant time and effort
    LOSS EXAMPLE
    QUESTIONS?

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