A crane is a lifting machine used both to lift and lower materials and to move them horizontally. It uses leverage to create a mechanical advantage and thus move loads beyond the normal capability of a human. Cranes are commonly employed in the transportation industry for the loading and unloading of freight, in the construction industry for the movement of materials, and in the manufacturing industry for the assembling of heavy equipment. Cranes, like all machines, obey the principle of conservation of energy. This means that the energy delivered to the load cannot exceed the energy put into the machine.
While modern cranes are a marvel of present day technological innovation and ingenuity, cranes have been around in various forms for many, many years. In fact, it is the Ancient Greeks in the 6th century BC who first started using simple cranes to move loads. Though their designs are much, much less complicated than today’s cranes, the basic principles remained similar.
Cranes today exist in an enormous variety of forms – each tailored to a specific use. Sizes range from the smallest jib cranes, used inside workshops, to the tallest tower cranes, used for constructing high buildings. And it is those taller, bigger cranes, especially the ones used for the heaviest loads, that have created the necessity for crane insurance . As anyone involved in cranes and heavy construction knows, accidents unfortunately can happen. That is why having an effective crane insurance policy is necessary. If you are a crane company or own cranes, you are asked to properly insure your cranes for fair market value (FMV). Most insurance companies will apply an “Actual Cash Value” (ACV) valuation if a loss occurs to your crane. Always request “Replacement cost” or “Stated Amount” from your insurance carrier when assessing values on your cranes. Also, always account for additional costs when valuing your crane limits.
Typical crane insurance policies fail miserably to provide coverage for the work and lifts done on a daily since most programs are not designed with the crane, rigging, and steel erection industry in mind. Even some "on the hook" crane insurance programs lack the necessary key coverages needed for basic operations. These "programs" restrict rigging, steel erector, and crane insurance coverage with tricky policy language and vague exclusionary wording that leaves people without coverage in the event of a claim.
For these reasons it is vital that anyone using a crane find an insurance agent or firm that specializes in this type of insurance and understands the needs of a crane operation.