When it comes to Scaffolding Insurance in the United States, why is it so tough to obtain coverage? In recent years, there are NOT too many insurance carriers willing to offer $1M – $25M in Insurance coverage.
Well, why is that?
In Insurance language, a Scaffold & Access company is what’s referred to as a “high risk” business. An Insurance carrier needs to take in more premiums than they pay out in claims to stay profitable & to stay in business. Think of Las Vegas & the casinos, they have to bring in more money than they pay out to keep the lights on! When Scaffolding is needed on a project, sometimes it can be in a highly populated area in certain cities, due to the exposure there is more liability at risk. This is why Insurance premiums are expensive & certain coverages are hard to obtain.
Many factors determine the premiums you will pay for your Scaffolding company’s insurance.
Below are few that are considered into your annual premiums & coverages:
- State in which your Scaffolding Company operates.
- Sales & Payroll of your company
- Experience within the Scaffold & Access niche
- Commercial vs. Residential projects
- Contracts that the GC’s or vendors are asking you to sign
- Your rental contract
The reason we’ve put “Rental Contract” in bold is because it is such a vital part of our niche industry. We’ve seen claims worth over >$2,000,000 in damages been passed onto another party due to having an industry specific Rental Contract. On the flip side, we’ve also seen Scaffolding contractors brought into lawsuits due to the absence of a strong rental contract.
Finding the correct insurance coverage for your Scaffolding company can be difficult, check out our Scaffolding & Access page to talk to our team or learn more – Scaffold Insurance
