Key Earthmoving Exposures and Risks
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Public Liability:
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Overall the public liability risk for this occupation is high, although the risk at the premises is fairly limited as there would be few visitors. The main risk is associated with work at the construction site including the risks of traffic accidents, unauthorised access, attractive nuisance, use of explosives, demolition work, collapse of structures, liability to sub-contractors, vicarious liability for sub-contractors, damage to customer and other third party property, business interruptions e.g. from interruption of gas or water supply and third party injuries from tools, equipment and materials.  Good risk management of on-site risks is essential.

Overall the public liability risk for this occupation is high, although the risk at the premises is fairly limited as there would be few visitors. The main risk is associated with work at the construction site including:

• Dangerous sites – slip, trip and fall, cables, dangerous goods, building materials, holes, obstacles etc
• Visitors to the site e.g. surveyors – personal injury (including site office risks)
• Access/security of site – trespassers/unauthorised access
• Machinery, equipment and materials could be deemed an attractive nuisance
• The use of explosives
• Welding risks
• Excavation work
• Demolition work and collapse of structures
• Liability to sub-contractors
• Vicarious liability for sub-contractors operations
• Damage to third party property in the vicinity, particularly in urban areas including claims for damage due to vibration, removal/weakening of supports
• Business interruptions e.g. from interruption of gas or water supply and third party injuries from tools, equipment and materials.
• The risks of traffic accidents associated with traffic control
• Liability for accidents caused by unregistered machinery/ construction equipment
• Principal’s indemnity exposures
• Worker to Worker liabilities
• Contract exposures including:
• Incidental contracts (e.g. utilities or lease costs for head office)
• Endorsed Contracts (those which are specifically declared and agreed by underwriters)
• Penalty clauses (which are normally excluded under broadform liability covers)
• Environmental risks – pollution and noise pollution (exclusion is not absolute under the policy)

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‍Motor / Plant:

This exposure will be moderate in general, based on the average size of a typical business operation and therefore likely size of the motor fleet. Most operations will own several transport vehicles to pick up and transport materials, plant and equipment and personnel to the job sites. Off-road use of vehicles will increase the exposure. The insured may also own or operate a variety of unregistered machinery (excavators, bulldozers, backhoes and cranes for example). These may be owned or leased. Cover may be requested under the Motor Vehicle policy, although in many cases a mobile machinery cover will be more appropriate.

This exposure will be moderate in general, based on the average size of a typical business operation and therefore likely size of the motor fleet. Most operations will own several transport vehicles to pick up and transport materials, plant and equipment and personnel to the job sites. Off-road use of vehicles will increase the exposure. The insured may also own or operate a variety of unregistered machinery (excavators, bulldozers, backhoes and cranes for example). These may be owned or leased. Cover may be requested under the Motor Vehicle policy, although in many cases a mobile machinery cover or Industrial Special Plant (ISP) policy will be more appropriate for example due to common policy restrictions e.g. for unregistered vehicles/use as a tool of trade. Cover should be reviewed in conjunction with the public liability cover.

Pollution liability/clean-up costs and in some cases cover for dangerous goods (e.g. explosives) will be required.

A serious exposure exists if a vehicle is driven carelessly by an inexperienced operator and the age and experience of all drivers should be understood. Off-road use of vehicles will increase the exposure.

Mobile machinery can include:

• Backhoes
• Bobcats
• Bulldozers
• Cherry Pickers/EWPs
• Cranes
• Excavators
• Forklifts, scissor lifts, heavy lift gear
• Front-end loaders
• Graders
• Grass and brush cutters
• Rollers
• Scrapers
• Skid steer loaders
• Traxcavators

The main issue with this category is the variety of types of equipment or machinery. Mechanical or electrical equipment can be confused with mobile plant which has wheels and is either towed or capable of moving under its own power. Mechanical or electrical equipment is generally carried or permanently mounted and has no wheels. These categories may be treated differently by the underwriter depending on policy wording and individual underwriting guidelines and acceptance criteria

The important point with this category is that Motor Fleet policies are designed for registered units. Unregistered vehicles may be subject to policy limitations. A typical Motor Fleet wording will exclude liability caused by, arising out of, or in connection with:

(i) the use of any unregistered or unlicensed Vehicle.

(ii) the use of the Vehicle as a Tool of Trade.

Typically, a tool of trade is defined as any vehicle, plant or equipment that is being used for excavating, digging, grading, drilling, lifting, pumping, vacuuming or other mechanical work, other than for:

1. loading and unloading goods onto or from a vehicle, by use of a crane mounted on that vehicle; or

2. transit to or from or within a work site; or

3. transport or haulage.

It is therefore important to ensure that coverage is provided under the contractor’s plant and machinery/public liability program.

An additional consideration is that these items, being unregistered, are likely to be transported to/from worksites on the back of goods carrying vehicles (flatbed trucks). The policy will often cover vehicles being transported only up to a specified sublimit. Underwriters and advisers will need to confirm that the sublimit is adequate for higher value items, and where necessary, an increased limit may need to be negotiated.

Why Hunter Broking Group?

Earthmoving Insurance Broker Brisbane:

Hunter Broking Group can assist with Earthmoving Insurance & Earthmoving Equipment Insurance. Through industry specific insurers, your designated advisor has access to a comprehensive range of insurance products that can be tailored to suit most construction trades and projects. We can assist with insurance for various segments in the earthmoving industry including:

• Mining Contractors
• Civil Contractors
• Demolition Contractors
• Plumbing Contractors
• Concreting
• Hourly Hire Earthmovers

Hunter Broking Group pride themselves on having a local presence with a national strength, our technical product experience allows us to manage and service earthmoving insurance products such as:

• Professional Indemnity Insurance (site supervisors)
• Public Liability Insurance
• Earthmoving Equipment Insurance
• Employers Liability (non government states)
• Contract Works Insurance / Contractors All Risks Insurance
• Environmental Liability Insurance
• Breakdown Insurance
• Substitute Hire Costs
• Underground Services Cover
• Tools of Trade

Earthmoving equipment is a core focus for our advisors, whether we are looking after small skid steers and bobcats or heavy earthmoving equipment, such as dump trucks or mining excavators, Hunter Broking Group have the experience to provide the appropriate advice for your size and risk exposures.

Our experienced brokers can help you get the most appropriate insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.
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Information Sources

https://www.lmiriskcoach.com/industries/19667/risk-assessment 
‍https://www.lmiriskcoach.com/industries/19667/hazard-index