CRANE INSURANCE CASE STUDY
Newly Established Crane Operator, $240K Crane, Support Truck and $20M Liability on One Package
Ten years operating cranes as an employee, then a $240,000 machine bought to go out alone. Nine markets declined; three quoted plant, and only one would add the $20 million liability to the same policy.
THE SITUATION
A crane operator in Queensland with ten years' experience as an employee bought a crane for around $240,000 plus GST and a support truck for around $35,000 to start a business, with settlement on the crane a few weeks away. The new company expected around $100,000 in first-year revenue, had no subcontractors, and needed plant cover, motor cover on the truck and $20 million public liability before settlement.
OUR APPROACH
- Twelve markets were approached for plant, vehicle and liability. Nine declined, most on occupation.
- Three plant markets quoted: approximately $7,600 for plant and vehicle including $20 million public liability, $8,100 for plant and vehicle only, and $9,100 for plant and vehicle only with liability declined.
- Substituted hire costs were added to the placing quote after the client asked what would happen if the crane needed repair, taking the premium to approximately $7,900.
- The nature of the lifting was confirmed to the underwriter, general building materials only, before binding.
- Premium funding was set up so the premium could be paid monthly.
THE CHALLENGES
A start-up crane business has no trading history and a high-value machine, and only one of the three plant markets that quoted would write the liability alongside it. The package mattered: one policy for the crane, the truck and the $20 million limit, rather than three policies from three insurers with three excesses.
THE OUTCOME
Plant cover on the crane, commercial motor on the support truck and $20 million public liability were placed with 360 Underwriting as one package at approximately $7,900 a year including substituted hire costs, and funded monthly.
Final Solution: A $240,000 crane, its support truck and $20 million liability on one policy at around $7,900 a year for a first-year operator.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our crane insurance guide and the dry hire insurance page.
CRANE OPERATOR QUESTIONS
What this placement answers for other crane and plant operators
How much does insurance cost for a new crane operator?
What is substituted hire cost cover on a crane policy?
Can I get public liability on the same policy as my crane?
CRANE INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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