The $80,000 Mistake Waiting at the Job Site

Imagine this scenario: You are an HVAC contractor in Frisco. You’ve hired a crane (or you’re operating one) to lift a brand new, 10-ton commercial chiller unit onto the roof of a three-story office building off the Dallas North Tollway.

A strap fails. The chiller plummets 30 feet and smashes into the pavement. It is destroyed.

You call your insurance agent, confident in your $1 Million Commercial General Liability policy. But the adjuster denies the claim. Why? Because of a standard exclusion found in almost every GL policy: Care, Custody, and Control.

Because the unit was being moved by you, it was in your “care.” Therefore, your standard liability insurance treats it as your problem, not theirs. Without Rigger’s Liability insurance, that $80,000 replacement cost comes directly out of your operating capital. For many small businesses, that is a bankruptcy event.

The “Care, Custody, Control” Trap

To understand why you need Rigger’s Liability, you first have to understand what you don’t have. Most contractors believe “Liability Insurance” covers any damage they cause. This is mathematically false.

Your General Liability policy is designed to protect you from third-party lawsuits—like if you drop a hammer on a pedestrian or if your welding torch sets the building on fire. It is not a warranty for your workmanship or the materials you are handling.

In the eyes of Texas insurance regulations, property under your supervision (in your “Care, Custody, or Control”) is essentially your property for the duration of the work. Insurance carriers assume that if you are holding it, you should be responsible for it. This exclusion is absolute in standard forms.

The bottom line: If it’s on your hook, on your forklift, or on your jack-and-slide system, it is uninsured by your GL policy.

What Rigger’s Liability Actually Covers

Rigger’s Liability is a specialized form of Inland Marine insurance. It specifically fills the gap left by the GL policy.

It covers the physical damage to the property of others while it is being lifted, moved, or installed by you. It transforms the “Care, Custody, Control” exclusion into an inclusion.

What it covers:

• “On the Hook” Damages: If the load drops.
• Swing Damages: If the load swings and hits the building, the damage to the building is GL, but the damage to the load is Rigger’s.
• Transportation (Sometimes): Depending on the policy form, it may cover the item while in transit to the lift site (though this often requires a separate Cargo policy).

We see this often with electrical contractors moving heavy transformers. One slip without this endorsement means you are effectively self-insuring a six-figure asset.

Who Needs It in North Texas?

Frisco and Collin County are in a perpetual state of construction. If your business involves gravity and other people’s property, you likely need this. We specifically recommend it for:

• Crane Operators: This is non-negotiable.
• Millwrights: If you dismantle and reassemble machinery, you are constantly in the “Care, Custody, Control” danger zone.
• HVAC Contractors: Specifically commercial installers lifting large RTU (Roof Top Units).
• Tow Truck Operators: Often requires a Garagekeepers or specialized On-Hook endorsement.
• Concrete Installers: Moving pre-cast barriers or beams.

Do not rely on the client’s insurance to cover their own equipment. Their carrier will likely pay the claim and then immediately subrogate against you to recover the money. If you don’t have Rigger’s coverage, that lawsuit comes out of your pocket.

The Real Cost of “On the Hook”

The cost of Rigger’s Liability is determined by the value of the property you move and the difficulty of the lift. It is not a flat rate. Underwriters look at:

For a small contractor in Texas, adding a basic Rigger’s endorsement (e.g., $25,000 limit) might only cost $500–$1,000 per year. Comparing that to the risk of a $25,000 loss, it is mathematically irresponsible to skip it.

The Agent’s Office® Advantage

We are independent agents. That means we don’t work for one carrier; we work for you. When we write commercial policies for Frisco contractors, we audit your operations for the “hidden” gaps like Rigger’s Liability and Action-Over exclusions.

We check the specific verbiage of the “On Hook” endorsement to ensure it matches the actual value of the equipment you are moving. Don’t let a generic policy leave you exposed.