Riggers Liability
Also known as: Riggers Legal Liability, Riggers Liability Coverage
Crane operators, riggers, millwrights, and steel erectors routinely handle extremely valuable third-party property — think of a $1.5 million chiller being hoisted onto a roof or a transformer being set on a pad. Riggers liability is the inland marine coverage that pays when the insured is legally responsible for damaging that property while it is being lifted, rigged, or moved. It exists because the load, during the lift, is squarely within the insured's care, custody, and control — an exposure that standard liability policies specifically refuse to cover.
This is critical for a small contractor because a commercial general liability policy contains a care, custody, and control exclusion that bars coverage for damage to property the insured is working on or handling. Without riggers liability, a dropped, tipped, or struck load leaves the contractor personally exposed to the full value of the customer's property. Riggers liability responds to exactly those events — the crane operator who drops a rooftop unit, the rigger whose chain fails, the millwright who bangs a machine into a wall while positioning it — up to the limit purchased for each lift.
A useful nuance is to keep two ideas separate: riggers liability covers the insured's legal liability for others' property being lifted, while physical-damage coverage on the crane itself insures the insured's own equipment. High-value or single-item lifts are often scheduled with a specific per-lift limit so the coverage is adequate for the biggest job. The concept is closely analogous to on-hook coverage for tow operators, which similarly protects a customer's vehicle while it is in tow, and to warehouse legal liability for stored goods.
Real-world scenario
Summit Crane & Rigging LLC is a Houston contractor with about $2.4 million in annual revenue that specializes in setting rooftop HVAC units and moving heavy industrial equipment. When a hospital hires Summit to hoist a $650,000 industrial chiller onto a five-story roof, Summit's operations manager realizes their general liability policy will not respond: GL contains a care, custody, and control exclusion that voids coverage for property the rigger is actively lifting. So Summit buys a Riggers Liability policy — a specialized inland marine form — with a $1,000,000 per-occurrence limit and a $2,000,000 annual aggregate for an annual premium of $8,400 and a $2,500 deductible.
Two weeks into the job, a synthetic sling fails mid-lift and the chiller drops six feet onto the roof deck, causing $420,000 in damage to the unit and the structure. Summit files a claim. After the $2,500 deductible, the insurer investigates, retains an engineer, and ultimately pays a $385,000 settlement to the hospital plus $38,000 in legal defense costs — none of which would have been covered under Summit's GL form.
Because Summit also rents a crane for $3,800 per lift and owns roughly $250,000 in slings, shackles, and spreader bars, its broker recommends keeping the riggers limit above the value of any single object it handles; a $50,000 limit would have left a catastrophic gap. The claim pushes Summit's next renewal premium to about $11,200, but the coverage saved the company from a six-figure out-of-pocket loss that could have ended the business.
How it affects your premium
Riggers Liability premiums are driven mostly by the value of the property a contractor lifts and how much can go wrong in a single hoist. Underwriters weigh the following factors:
- Per-lift value and limit selected: The single most important driver — a firm regularly moving $1M transformers needs a far higher per-occurrence limit than one setting $40,000 rooftop units, and premium scales with that limit.
- Type of property handled: Fragile, one-of-a-kind, or long-lead equipment (turbines, MRI machines, art) raises rates because replacement cost and downtime are severe.
- Rigging methods and equipment condition: Documented sling, shackle, and crane inspection programs and rated hardware reduce loss frequency and earn credits.
- Operator experience and certification: NCCCO-certified operators and formal lift-plan procedures signal lower risk to underwriters.
- Claims history and revenue: Prior dropped-load losses and higher annual sales (more lifts = more exposure) both push premiums up.
- Deductible chosen: Accepting a larger deductible lowers premium but shifts more of each loss back to the contractor.
- Height, congestion, and job site conditions: Confined urban sites, multi-story lifts, and proximity to other structures increase the odds and severity of a claim.
Common misconceptions
Myth: My general liability policy already covers damage to the property I'm lifting.
Reality:
It almost never does. Standard general liability forms contain a care, custody, and control exclusion that specifically removes coverage for property in your control while you're rigging it — which is exactly why Riggers Liability exists.
Myth: Riggers Liability also covers my own cranes, slings, and rigging tools.
Reality:
No. Riggers Liability protects the third-party property being lifted, not your own equipment. Your gear is insured separately under a contractors' equipment or inland marine floater.
Myth: A small limit is fine because most of my lifts are routine.
Reality:
The limit should reflect the value of the single most expensive object you could ever hoist, not the average. One dropped $600,000 chiller can exhaust a $100,000 limit instantly and leave you personally exposed for the rest.
Frequently asked questions
What exactly does Riggers Liability cover?
It covers physical damage to a customer's or third party's property while that property is in your care during hoisting, lifting, moving, or setting operations — filling the gap left by the care, custody, and control exclusion in your liability policy.
How is Riggers Liability different from installation floater coverage?
Riggers Liability responds while you are lifting or moving someone else's property; an installation floater covers materials and equipment you are installing until the job is accepted. Many rigging contractors carry both.
What limit should a rigging contractor buy?
Match the limit to the value of the single most expensive item you could lift, not the average job. If you occasionally set a $1 million transformer, your per-occurrence limit should be at least that high.
Can a general contractor require me to name them on my Riggers Liability policy?
Often yes. Contracts frequently require you to add the owner or GC as an additional insured and provide a certificate of insurance before you're allowed on site.
Does Riggers Liability cover my own crane if it tips over?
No. Damage to your own crane and rigging gear is covered by contractors' equipment or inland marine coverage. Riggers Liability only responds to damage to the third-party property you're handling.
Sources cited
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