Overview

Coverage

Exclusions

Limits of insurance

Deductible

Additional conditions

Definitions

Overview

 Various factors are considered in underwriting a Riggers Liability policy, including the business capability and financial condition of the contractor, conditions at the job site, the type of equipment used, and the type of operation being conducted. ISO states, "A rigger's liability generally starts when the straps, belts and pulleys are put around the property being moved and generally ceases when the property is set in place and the belts, straps and pulleys are removed. This is standard; if the rigger deviates from this standard, the underwriter should be informed of this."

 The principle causes of loss in Riggers Liability policies are the property colliding with another object, the covered property being dropped, and the covered property hitting an overpass while being moved. According to ISO, the majority of the losses result from human error.

 Coverage

 The form promises to pay for sums the named insured, as a rigging contractor, becomes legally obligated to pay as damages because of a direct physical loss or damage to covered property from any of the covered causes of loss. "Rigging" is a defined policy term, meaning: "a. Moving, including loading, unloading, lifting, lowering, erecting and dismantling, of Covered Property; and b. Preparing for the activities described in Paragraph a. with cranes, pulleys, tackles and similar equipment." Covered property is tangible property of others in the insured's care, custody, or control that the named insured handles in its operations as a rigging contractor.

 Not covered by the policy is property for which the insured has no obligations under contract for the insured's services as a rigger; property for which the insured has been released of liability; property the insured handles solely as a carrier for hire; and contraband or property being illegally transported or traded.

 Coverage ends when the policy is cancelled, expires, the rigger's liability for the property ends, or when the rigger abandons operations with no intention of completing them.

 The policy is open perils, meaning that all risks of direct physical loss or damage to covered property are covered, except those specifically excluded by the policy.

 The policy contains four additional coverages:

 1.Debris removal: expenses must be reported in writing within 180 days of direct physical loss or damage. The most the policy pays is the lesser of 25 percent of the amount the insurer pays for the direct physical loss or damage, plus the deductible; or the applicable limit of insurance for covered property at the job site, at a location other than the job site, or in transit, plus the deductible. The additional coverage does not apply to the cost to remove, restore, or replace polluted land or water or to extract pollutants (as defined in the policy) from land or water.

 2.Pollutant clean up and removal: if the discharge, seepage, release, escape, migration, or dispersal of pollutants results from or is caused by a covered cause of loss occurring during the policy period, the policy pays for the insured's expense to extract pollutants from land or water. The expenses must be reported in writing within 180 days of the occurrence of the covered cause of loss. Costs to monitor, test for, or assess the concentration, effects, or existence of pollutants are not included, but testing performed while the pollutants are extracted from the water or land are covered. "Pollutants" is a defined term as noted later in the Definitions section of this article. The most the insurer will pay under this additional coverage is $10,000 for the sum of all covered expenses arising out of covered causes of loss occurring during each separate 12-month period of this policy. The limit for this additional coverage is in addition to the limit of insurance.

 3.Preservation of property: the policy promises to pay for any direct physical damage or loss caused by a covered cause of loss to covered property while it is being moved to another location or temporarily stored at another location in order to preserve it. The loss or damage must occur within thirty days after the property is first moved.

 4.Fire department service charge: the form will pay up to $1,000 (unless a higher limit is shown in the declarations) for the insured's liability for fire department insurance charges required by local ordinance or assumed by contract or agreement prior to loss. A deductible does not apply to this additional coverage.

 Exclusions

 The insured's liability for loss or damage caused directly or indirectly by the following is excluded, regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage:

 1.Ordinance or law: the enforcement of an ordinance or law that regulates the use, repair, or construction of any property or that requires any property to be torn down, including the cost of debris removal, is excluded. If the loss or damage results from the enforcement of a law or ordinance, even if the property has not been damaged, or if an increased cost is incurred to comply with a law or ordinance, the exclusion applies.

 2.Governmental action: destruction or seizure by government order is excluded, but action by governmental authority at the time of fire to prevent its spread is covered if the fire is also covered.

 3.Nuclear hazard: nuclear reaction or radiation, or radioactive contamination from any cause are excluded. However, fire resulting from nuclear reaction or radiation or from radioactive contamination is covered if the fire would be covered by the form.

 4.War and military action: war, including undeclared and civil wars; warlike action by sovereign or other authority; or insurrection, rebellion, usurped power, or revolution, or action taken by government authority against any of these, is excluded.

 The exclusions apply whether or not widespread damage occurs or a substantial area is affected.

 The insured's liability for loss or damage caused by the following is also excluded:

 1. Delay, loss of market, loss of use, or any other consequential loss.

 2.Unexplained disappearances.

 3.Shortage found upon taking inventory.

 4.Dishonest or criminal acts committed by the insured or its employees, partners, trustees, directors, authorized representatives, managers, members, anyone with an interest in the property or their employees or representatives, or anyone to whom the property is entrusted. This exclusion applies whether persons act alone or in collusion with others or whether or not occurring during hours of employment. Covered property entrusted to carriers for hire and acts of destruction by the insured's employees are not included in this exclusion, but theft by employees is excluded.

 5.Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances, or wires. If fire results, direct loss or damage caused by that fire is covered if the fire would be covered by the form.

 6.Unauthorized instructions to transfer property to any person or to any place.

 7.Neglect of an insured to use all reasonable methods to preserve and save property.

The so-called "wear and tear" exclusions also apply, including insured's liability for loss or damage caused by or resulting from wear and tear; depreciation; latent or hidden defect; gradual deterioration; any quality that causes property to destroy or damage itself; breakdown, failure to operate, or malfunction of covered property (unless a direct result of the insured's rigging operations project); insects, vermin, or rodents; or corrosion, rust, dampness, and extremes of temperature.

 Loss or damage expected or intended by the insured is also excluded.

 Limits of Insurance

 The limit shown in the declarations is the most that the policy will pay for any one occurrence of loss or damage. The preservation of property and debris removal additional coverages do not increase the limit of insurance. However, if the sum of direct physical loss or damage and debris removal expense is more than the limit of insurance or the debris removal expense is more than the amount payable under the 25 percent limitation, the policy pays an additional $10,000 in any one occurrence under the debris removal additional coverage. The other additional coverages are in addition to the limit of insurance.

 Deductible

 The amount of the adjusted loss or damage must exceed the deductible before the policy pays. Once the deductible amount has been reached, the policy will pay the amount of the adjusted loss in excess of the deductible, up to the limits of insurance.

 Additional Conditions

 The form contains three additional conditions:

 1.Valuation. This additional condition replaces the Commercial Inland Marine Conditions form's valuation general condition. The property will be valued at the least of its actual cash value, the cost to reasonably restore the property to its condition immediately before loss or damage, the cost to replace the property with substantially identical property, or the amount for which the insured is liable. The value includes the value of services arranged or furnished by the insured. The property's value is determined as of the time of loss or damage. The Commercial Inland Marine Conditions form does not provide the amount for which the insured is liable as a valuation option. Not does it include the value of services arranged or furnished by the insured.

 2.Coverage territory. This condition applies in addition to the Commercial Inland Marine Conditions and Common Policy Conditions. The policy covers property located in the U.S and its territories and possessions, Puerto Rico, and Canada .

 3.Defense. This condition, like the coverage territory condition, applies in addition to the Commercial Inland Marine Conditions and Common Policy Conditions. The insurer may elect to defend the insured against lawsuits arising from claims of property owners and the insurer does this at its own expense.

 Definitions

 The Riggers Liability Coverage form contains two definitions.

 1.Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and, waste. Waste includes materials to be recycled, reconditioned, or reclaimed.

 2.Rigging means moving, including loading, unloading, lifting, lowering, erecting, and dismantling of covered property and preparing for such activities with cranes, pulleys, tackles, and similar equipment.

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