The crane insurance market is undergoing a sharp contraction, with major carriers exiting the space and those remaining implementing steep premium increases. For crane operators – particularly niche or small-scale outfits – the result is a limited and costly insurance landscape that threatens business continuity.
“There's increasing litigation involving regulations,” said Megan Rose (pictured), president of New Heights Insurance Solutions. “A lot of carriers are getting out of this space, so it's harder to find someone willing to write this class of business.”
A $640 million crane-related claim has become emblematic of the risk environment insurers now face. While losses of that magnitude are rare, they have an outsized influence on underwriting appetite.
“When a carrier gets hit with a large claim, they start asking whether it's worth staying in the game,” Rose said. “Even if you’re a smaller operation with no claims, your premiums could be adversely impacted by what is happening elsewhere in the industry.”
The auto exposure tied to mobile crane operations compounds the problem. According to Rose, most claims stem from road accidents rather than lifting incidents. “It’s hard to get a carrier willing to write the auto portion,” she said.
To counter rising costs, operators are investing in telematics and onboard video systems – some with panoramic views from the crane boom – to support claims defense and potentially reduce premiums.
“It can help during a claim if something happens,” said Rose. “These technologies can lead to lower premiums, which is crucial given how fast costs are rising.
Rather than default to broad coverage across jurisdictions and job types, New Heights Insurance Solutions crafts tailored policies that reflect an operator’s actual scope of work.
“We don’t want to give them the entire cake,” Rose said. “If you’re not lifting something that costs a million dollars, there’s likely no need to insure for that. But if you get a job that requires it, come back to us – and we’ll underwrite it specifically.”
This targeted approach helps keep premiums manageable and reduces the likelihood of outsized losses. “You don’t really see frequency in this sector – you see a large loss. So we focus on helping them avoid that,” she said.
With litigation risks mounting and fewer insurers willing to stay in the crane space, operators are bracing for continued turbulence.
“There are just fewer and fewer options out there,” said Rose. “That means the ones left are getting more expensive, and the bar for entry keeps rising.”
