Understand the key factors that can influence crane insurance costs in Australia, including crane type, value, lifting work, operating radius, operators and claims history.
What drives crane insurance costs in Australia? The type and value of the crane are important, but they are only part of the picture. The type of lifting work, maximum capacity, operating radius, operators, locations, claims history and the sections of cover selected can all influence the overall cost.
There is no credible one-price answer. A truck-mounted crane carrying out local loading work presents a very different risk profile from a mobile crane undertaking complex lifts across multiple construction sites.
Which Machine Details Can Influence the Cost?
The crane and vehicle details help establish exactly what is being insured and how the equipment is being used. When arranging cover, an insurer or broker may ask for information such as the make, model, year, serial number, value, crane class, lifting capacity, registration, finance arrangements and attachments.
Consider the following details:
● Crane type: Whether you operate a mobile crane, tower crane, vehicle loading crane or another type of lifting equipment helps define the equipment and its overall work profile.
● Capacity: Your crane’s rated capacity and usual working capacity provide an indication of the types and sizes of lifts it typically undertakes.
● Value: The current value of the crane or the replacement value requested can influence the material damage section of the policy.
● Mobility: How the crane is transported, whether it is driven on public roads and the areas in which it operates can connect the risk to motor, transit and geographical considerations.
● Ownership: Whether the crane is owned, leased, financed or hired can affect the interests that need to be considered when arranging the policy.
Providing accurate and up-to-date information about your crane helps create a clearer picture of the risk being insured.
How Does the Work Performed Affect Crane Insurance Costs?
The work your crane performs is an important part of the insurance assessment.
An insurer needs to understand what is being lifted, where the work takes place, who the work is being performed for and how the lifting operation is controlled.
Useful information can include:
● Types of projects and lifting work undertaken
● Maximum and typical loads
● Types of sites where the crane operates
● Operating and travel radius
● Work near powerlines
● Marine or barge-related lifting
● Shutdown or specialised industrial work
● Underground work
● Hired-in plant
● Percentage of wet-hire work
● Subcontracting arrangements
● Geographic areas in which the crane operates
Contract terms can also be relevant, particularly where they introduce additional responsibilities, liabilities or specific insurance requirements.
Safe Work Australia describes cranes as plant used to raise or lower loads and move them horizontally. Depending on the type of crane and work being undertaken, registration and high-risk work licensing requirements may apply. These are workplace safety and licensing requirements and should not be taken as a statement about what an insurance policy will or will not cover.
Which Operator and Risk Management Details Matter?
The people operating the crane can also form part of the risk assessment.
Providing information about employees and subcontractors helps insurers understand who is carrying out the work and what experience and controls are in place. Details may include licence classes, industry experience, training and relevant claims history.
Good risk management can also provide useful context around the way your business operates.
A crane insurance submission can include:
● Fleet: A complete schedule of cranes, vehicles and relevant equipment.
● Work: The types of lifts, loads, projects, sites and operating radius.
● People: Information about operators, doggers, riggers and subcontractors.
● Controls: Maintenance programmes, inspections, lift planning and incident procedures.
● Contracts: Standard contracts as well as any unusual indemnities or insurance requirements.
● History: Previous claims, losses, incidents and the corrective action taken.
Being able to provide this information clearly can make it easier to assess the risks associated with your crane operations.
What About Cranes Used on Mine Sites?
Cranes operating on mine sites can involve additional considerations.
For example, the insurance assessment may need to consider the contract’s liability requirements, the applicable liability limit, whether the crane is dry hired or wet hired, and how the equipment travels between sites.
The mine site’s requirements and the terms of the contract can therefore be important when arranging appropriate insurance.
Why Should Different Policy Sections Be Reviewed Separately?
A crane insurance programme can involve several different areas of cover, and each one addresses a different part of the risk.
Material damage may cover insured equipment against specified loss or damage, subject to the policy.
Motor insurance may be relevant to registered vehicles and road use, depending on the crane and vehicle arrangement.
Liability insurance may respond to certain third-party injury or property damage claims, subject to the policy terms, conditions and exclusions.
Some risks can require particularly careful consideration, including:
● Care, custody or control
● Damage to property being worked on
● Underground services
● Vibration
● Hot work
● Contractual or assumed liability
● Work around other contractors or third parties
The exact response will depend on the policy wording. This is why comparing insurance based only on the premium can be misleading. The scope of cover, limits, exclusions, excesses and conditions should also be considered.
Frequently Asked Questions
How Much Does Crane Insurance Cost in Australia?
There is no reliable universal price for crane insurance. The cost can depend on factors such as the crane and vehicle schedule, type of work, lifting profile, operating locations, liability limits, operators, claims history and the current insurance market.
Does the Value of a Crane Determine the Whole Premium?
No. The value of the crane can influence the material damage component of the premium, but it is not the only factor.
The type of work, lifting capacity, operating radius, operators, locations, liability exposure and claims history can also influence the overall cost.
Can Wet Hire Affect Crane Insurance Costs?
Yes. Wet hire, where the crane is supplied with an operator, can change the nature of the services and liability risks that an insurer needs to consider.
The impact will depend on the full circumstances of the business, the work being undertaken and the structure of the insurance policy.
How Can I Reduce My Crane Insurance Costs?
There is no guaranteed way to reduce a premium, but maintaining good risk management practices can help present your business clearly to insurers.
Keeping accurate maintenance records, ensuring operators have the appropriate licences and training, maintaining effective lift-planning procedures and providing a clear claims history can all help insurers understand the risk.
Get the Right Crane Insurance for Your Business
Crane insurance costs are influenced by much more than the value of the equipment. The type of crane, lifting work, operators, locations, contracts and claims history can all contribute to how the risk is assessed.
At Auswide Insurance, we can help crane operators and businesses understand their insurance requirements and explore suitable options based on their individual operations.
If you’re reviewing your current crane insurance or arranging cover for new equipment, speaking with an experienced insurance broker can help you understand the available options and the factors that may affect your premium.