Risk Management
More Than Just Insurance
Boots’ experience in the lifting and heavy haul industry began when he was young. Here, he helps his father deliver forklift safety training to J. A. Miara company.
“ A broker is free to research and solicit offers from many potential insurers in order to find the client the best combination of coverage and premium cost,” he said.“ Gallagher Crane Division is a broker, not an agent.”
Beyond Rates and Terms
But any risk management provider’ s value should go far beyond just looking at rates and coverages, Boots said.
“ Risk management and insurance can be very specialized, complex and confusing to people who don’ t work with them all the time,” Boots noted.“ A risk management provider should help its clients understand and navigate the complexities.”
One way to do that is for the risk management provider to foresee future trends, and help its clients prepare for them.
“ For example, several years ago, we foresaw the developing need for cyber liability protection,” he said.“ So we started offering that coverage as an option in every quote. Today, clients choose it about 85 % of the time to protect themselves in case of hijacked wire transfers, ransomware or similar disruptions.”
Also looking at the future, a risk management provider can help a client get ready to grow.
For example, a crane owner who is thinking of expanding into wind work might ask his or her risk management provider about the risks, coverages and costs related to those applications.
A second way a risk management provider can support its clients is helping educate the client’ s customers.
Boots gave the example of a project owner who is unfamiliar with cranes and wants a crane owner to have $ 10 million in pollution coverage in order to bring the rig on site.
“ We might be able to educate the project owner that the real risk of the crane polluting during the short time it will be on the job is a lot less than they think,” he said.“ Once they understand, they may reduce the coverage requirement.”
Yet another way a risk management provider can make life easier for its client is standardizing or streamlining the client’ s insurance-related documents and processes.
“ Clients who use subcontractors often find that all the subs present different terms, conditions and limits in their contracts,” Boots said.“ Standardizing its agreements or setting up subcontractor compliance portals can simplify that for the crane owner. We gladly help clients do that.”
A fourth way risk management providers can help their clients improve operations and potentially reduce their premiums is to show them ways to improve safety.
Boots gave the example of a crane company that has an unfavorable DOT rating.
“ The risk management provider can help the trucking company figure out how to make the needed improvements and how to then get reassessed for a better rating.”
Key Advice
If Boots could offer one piece of advice to help clients improve their risk management, what would it be?
“ Don’ t hire your next claim,” he said.“ I’ ve heard that guidance throughout all the industries we serve.”
He said that employers should be sure to hire people who share the values of the company’ s culture.“ Safety performance begins with hiring analysis,” he noted.
“ Managing risk is a huge part of any business’ success. We at Gallagher Crane Division are happy to help.”
Spending time with clients and getting to know their operations is vital to providing tailored solutions.
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April 2025 • www. cranehotline. com