Millions of construction workers spend their days on scaffolds. After all, scaffolding is integral to construction projects requiring a temporary workspace in aboveground areas of the structure.

For brokers providing coverage for contractors with scaffolding risks, it's critical to understand the complexities involved, particularly concerning providing comprehensive coverage. RPS Area Vice President Rikki Concannon provides an overview of the insurance required to cover scaffolding risks, insights into underwriting concerns, and best practices to implement.

Coverage for Scaffolding Risks

Scaffolding contractors operate in one of the most challenging environments in the construction industry. The potential hazards, including falls, equipment failures and exposure to extreme weather, require robust insurance coverage. The insurance lines involved typically include:

General Liability (GL) is the foundation of any insurance package and covers third-party bodily injury and property damage.

Automobile covers vehicles scaffolding contractors use, with limits varying by state.

Excess Liability provides additional protection above the GL limits, essential for large claims that exceed the primary policy.

Inland Marine covers the scaffolding equipment, including in transit and at job sites. This crucial coverage protects against physical damage or loss, particularly in areas prone to natural disasters such as hurricanes.

Workers' Compensation covers employees in case of injury, a vital component given the high-risk nature of scaffolding work.

Underwriting Considerations and Risk Management for Scaffolding Risks

When underwriting a scaffolding risk, Concannon explains that carriers focus on several factors beyond the basic loss history:

Ownership of scaffolding: Contractors who own their equipment are typically preferred over those who only provide labor, as ownership indicates a higher level of care and responsibility.

Engineering and safety measures: Pre-engineering practices and adherence to safety protocols are critical. For example, the spacing of planks and the use of fall protection systems are closely scrutinized. Insurers also look at OSHA violations, requiring explanations for any citations, as these can be red flags indicating a lack of compliance with safety standards.

Height limitations: "Unlike many competitors, RPS does not impose height restrictions on the scaffolding we cover, recognizing that high-rise construction projects are an essential part of the industry," says Concannon.

Challenges in the Scaffolding Insurance Market

The insurance needs of scaffolding contractors are often misunderstood by generalist brokers, who may not realize the specific demands of this niche.

"This misunderstanding can lead to mispricing and inadequate coverage, creating vulnerabilities for the contractor and the insurer," warns Concannon.

Best Practices for Brokers

For brokers, successfully placing scaffolding insurance requires a deep understanding of the industry and close collaboration with carriers. Here are some best practices:

  • Thorough preparation: Before meeting with a scaffolding contractor, brokers should thoroughly understand the specifics of the business, including the types of scaffolding used, the typical heights involved and the contractor's safety record. This preparation allows for more informed discussions and better coverage recommendations.
  • Risk assessment and documentation: Ensuring contractors have robust risk management practices, such as regular safety inspections and proper equipment maintenance, is crucial. Brokers should advise their clients to document these practices meticulously, which can positively influence underwriting decisions.
  • Leveraging specialized programs: Brokers should consider working with insurers who offer comprehensive, single-source solutions that cover all aspects of scaffolding operations. This approach simplifies the insurance process, reduces administrative burdens and ensures consistent coverage across all risk areas.

RPS: A Key Player in Scaffolding Insurance

RPS is a key player in this niche, with 38 years of experience, offering GL, Automobile, Excess Liability (outside New York), Workers' Compensation and Inland Marine coverage.

"What sets us apart is our high retention rate and careful underwriting process, ensuring we have the right carrier partners and are doing business with the right risks to maintain program profitability, stability, and continuity for our brokers," says Concannon. "We're also a great resource for our brokers, collaborating up front and helping them prepare for client meetings."

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