What Is Riggers Liability Insurance? A Guide for Plant Managers
For plant managers, equipment represents a substantial investment. Protecting those assets at all times is a high priority, especially when it comes time to install, relocate, or decommission them. Although hiring experienced heavy equipment rigging and moving contractors is crucial, even the most accomplished providers can still make mistakes due to circumstances beyond their control.
Even if you have general liability insurance, this doesn’t necessarily mean you’ll be covered while a contractor handles your equipment. Motor truck cargo insurance only applies while the assets are in transit on the road. Riggers liability insurance is what you’ll need to ensure you have the coverage you need whenever having machinery moved or installed by a third-party provider. Read on to learn more about this type of protection and what makes it so important.
The Coverage Gap — Why General Liability Isn’t Enough
General liability insurance policies typically include what’s known as a “Care, Custody, and Control” exclusion. This means they exclude any damages to property that occur when the asset is out of the policy-holder’s custody. For example, if a rigging company drops your HVAC unit through your roof, general liability may only cover the damage to the building and not to the equipment. That’s because the HVAC unit was in the custody and control of the rigging company and not you.
This means that if you hire an equipment mover that does not have riggers liability insurance, you will most likely be exposed for the full replacement cost of whatever machinery is damaged during handling or installation.
What Riggers Liability Insurance Actually Covers During a Move
With riggers liability insurance, a moving company has coverage the applies whenever it lifts, rigs, maneuvers, or installs your equipment. It pairs with motor truck cargo insurance, which provides protection for your assets while they are rolling to create comprehensive door-to-door protection throughout the relocation and installation process.
One important element of note with rigging insurance is that it typically caps coverage at a specific dollar amount. When researching moving and rigging companies, be sure to inquire about the level of coverage the provider carries. Without sufficient liability coverage, high-value machinery such as MRI equipment or specialized manufacturing machines may not be covered.
A Practical COI Checklist for Plant & Operations Managers
The key to success when it comes to ensuring the proper level of liability coverage is to have a repeatable approach to vetting your vendors. This should include a review of the mover’s Certificate of Insurance (COI) as part of a baseline risk management assessment.
- Step 1: Confirm that the company has a dedicated line item for “riggers liability” or “inland marine” coverage, not merely general liability by itself.
- Step 2: Verify that the mover’s coverage limits exceed the replacement cost of the item being moved, not the current depreciated value.
- Step 3: Ask about any possible exclusions, such as limitations on older machinery, specific lift operations, or unusual hazards.
The Hidden Cost of Uninsured or Underinsured Rigging
Going with the lowest quote for rigging and moving services can end up costing you much more than you save. Any damages to your equipment that are not covered could mean you’ll be on the hook for a full replacement. At the same time, replacing major equipment can take weeks or even months — all the while costing you far more in terms of lost productivity than the cost of the replacement itself.
Movers who are properly insured and experienced will factor any risks into their pricing. If the quote you receive from an operator seems too good to be true, that’s most likely because they don’t carry the right coverage. Equip Trucking & Warehousing, LLC, has been serving clients like you for more than 60 years, and our longevity speaks to our commitment to doing things the right way to protect you and your equipment.
Why Equip Trucking & Warehousing Prioritizes Asset Protection
With three generations of experience safely moving industrial, energy, medical, and manufacturing equipment, Equip Trucking & Warehousing has the expertise and insurance coverage needed to give you peace of mind. We offer our clients throughout Pennsylvania, New Jersey, Delaware, and Maryland flexibility to coordinate appropriate coverage limits or policy riders for your sensitive or oversized equipment. From pharmaceutical tanks to energy infrastructure components, we know how to move heavy equipment as safely and efficiently as possible.
If you’re ready to learn more about how working with a mover that emphasizes safety, insurance, and long-term trust can benefit your operations, get in touch with us today. Our representatives are ready and willing to discuss your needs and how our industrial rigging services can help.