Top 10 Crane & Rigging Losses Recognizing & Avoiding The Risks

1. Top 10 Crane & Rigging Losses Recognizing & Avoiding The Risks Presented by NBIS Insurance & Risk Management Team: Michelle Lorenz – Manager, Litigation & Claims Cliff Shepherd – Supervisor, Claims Billy Smith – EVP, Risk Management Acknowledgement to Jim Wiethorn, PE of HAAG Engineering for the Accident Scene Photos & Re-enactments

2. OSHA’s Crane & Rigging Fatalities Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) • Not surprisingly, in 2001, OSHA determined that the construction industry had the 3rd highest fatality rate among all 9 major economic sectors. • OSHA investigated 7,479 construction fatalities from 1991-2002 • Average 623 fatalities per year on construction sites… over 50 people per month! • Crane Related Fatalities on Construction Sites • Represented 8% of construction site fatalities • Nearly 600 crane related fatalities on construction sites • 84% of crane related fatalities involved mobile cranes with lattice and telescopic booms, truck or crawler mounted cranes/derricks. • Reason for OSHA’s recent re-writing of its crane & derrick standards

3. OSHA’s Crane & Rigging Fatalities Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) • Using OSHA’S fatality investigations from 1997–2003, the study’s authors analyzed 125 Fatalities to assess: • Proximate Cause of Accident • Victim’s Occupation • Work site’s End Use Function • Construction Operation being Performed by the Crane • Evaluation of Safety Program of Victims’ Employers • Union vs. Non-union • Type of Crane involved in the Fatal Event • Number & Type of OSHA citations by proximate cause • Training & Certification of Operators • Experience of the Victim • Presence of a Competent Person on Site • Type of Rigging

4. OSHA’s Crane & Rigging Fatalities Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) • Proximate Causes of OSHA Fatalities involving cranes & derricks during lifting operations. • Failure of Boom/Cable • Crane Tip Over • Electrocution • Struck by Load (other than failure of boom/cable) • Falls • Crushed During Assembly & Disassembly of Lattice Booms • Struck by Cab/Counterweight • What didn’t Cause any OSHA Fatalities: • Two blocking • Takeaway from this: Crane Manufacturers play a significant role in minimizing fatalities by developing safety devices

5. OSHA’s Crane & Rigging Fatalities – Causation Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

6. OSHA’s Crane & Rigging Fatalities - The Victims Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) • Occupations of Fatality Victims: • Crane Operator = 10% • Rigger/Laborer = 54% • Ironworker = 9% • Other General occupations including carpenters, welders, masons, truck drivers, etc = 21% • Considering the Proximate Cause of the Fatalities … • The most commonly killed worker was always the Rigger/Laborer • Ironworker fatalities were caused almost exclusively by being struck by the load • Nearly ½ of crane operator fatalities occurred when cranes tipped over • Skilled vs Unskilled Victims • Fatalities to Ironworkers and Crane Operators were far less than unskilled workers • Study doesn’t detail union vs non-union

7. OSHA’s Crane & Rigging Fatalities – The Victims Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

8. OSHA’s Crane & Rigging Fatalities – The Crane Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

9. OSHA’s Crane & Rigging Fatalities – Type of Operations Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

10. OSHA’s Crane & Rigging Fatalities – Serious Citations Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) Items in Red = Serious Citations Common in NBIS Data

11. OSHA’s Crane & Rigging Fatalities – Conclusions Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006) • As a result of this OSHA study, the authors concluded: • Crane operators and riggers should be qualified & re-qualified every 3 years thereafter • Crane safety training must be provided to specialty trade crafts before they are allowed to work around cranes during lifting operations. • A “diligent” competent person should be in charge of all aspects of lifting (in accordance with as defined in 29CFR 1926.32f ) • OSHA should improve its system of collecting information during fatality investigations • WE AGREE! • But, we also recognize that we have different data!

12. OSHA’s Fatality Data vs. NBIS Accident Data • Sample Size of Data • OSHA data only includes 125 crane accidents over 7 years • NBIS data includes appx 500 crane accidents in 1year alone • Severity of Injury & Type of Damages • NBIS analyzes all types of bodily injuries, not just fatalities • NBIS includes property damage claims, not just bodily injury claims • Type of Victim • OSHA data may not properly characterize different types of Victims (i.e. Ironworker vs Rigger) • No Signalmen • Lumps together different “general occupations” • Sophistication of Crane Operator & Crane Company • NBIS data is exclusive to experienced crane & rigging companies & operators • OSHA data includes C&R specialists but also generalists like GC, tree companies, etc • Mobile Crane – Auto Motor Vehicle Accidents • NBIS includes those often occurring accidents going to & from a jobsite • Actual vs Potential Exposure • NBIS analyzes not just actual catastrophic accidents but potential catastrophic damages from “minor” accidents • Location of Accident • NBIS data includes All Crane Related Accidents not just construction sites

13. OSHA Data vs NBIS Data - Similarities • Overload Conditions are a frequent cause of Structural Failures to Boom & Crane Stability/Tipping • Rigging Failures are very common • Crane Stability Issues are very common • Being Struck by Load is very common • Common cause: Load dropping • Common cause: Rigging Failure • Assembly-Disassembly Accidents are very common • Cause of both High Frequency of Accidents & High Exposure Damages • When electrocutions do occur, the most common cause is similar: failure to maintain required clearance • Lattice boom cranes are involved in more accidents than telescoping boom cranes

14. OSHA Data vs NBIS Data –Differences • Common Causes unique to OSHA Data • Often reflects inexperience of generalists involved in crane operations • Examples: • Structural Failure of Crane • 12% of OSHA fatalities • Improper Assembly & equipment damage • Appx 10% OSHA fatalities • Struck by Cab & Counterweights • Electrocution is far more common in OSHA data • 27% of OSHA Crane Related Fatalities • Boom contact & cable contact are far more common in OSHA data • Common Causes in NBIS Data • Reflecting unique nature of lifts done by Crane Experts • Often indicative of conditions outside the Crane Operators’ Control • Examples: • Wind Related Accidents significant with NBIS • Only 1.6% of OSHA data • Falls

15. What are the Top 10 NBIS Crane Accidents? • Improper Rigging • Ground Collapse • High Wind Conditions • Load Over Capacity • Load Swings into People or Property • Load or Crane Crushes or Pinches People • Landed Load Not Properly Secured • Tools & Supplies Dropped from Overhead • Inadequate Number of Counterweights • Crane – Auto Accidents

16. What are the Top 10 NBIS Crane Accidents? • For each of these Top 10 Accidents: • Examples of What Happened • Some of the B30 Duties • Issues Impacting the Defense of the Lawsuit • What the NBIS Data is and isn’t • Not a Top 10 frequency list • Not a Top 10 severity list • It is “common trends” we see in claims • It includesa combination of most frequent, most exposure, most severe BI, most severe PD • It is Intended to be a “What to Watch For” in your own Safety Programs

17. 1. Improper Rigging - Examples • Improper Rigging Causes Dropped Loads • Load shifts or slips out of rigging • Load Slices Rigging Straps • Shock loads • Examples of Improper Rigging: • Frequent Accidents from Improper Use of Softeners • Failure to Use Softeners • Softeners slip • Softeners are Inadequate • Frequent Accidents from Improper Rigging Configuration • Rigging Configuration not Proper for Load • Load Capacity of Rigging Equipment not sufficient • Failure to Use Manufacturer’s Lifting Lugs & Lifting Configurations • Defective Straps • not a common cause of accidents but common allegation

18. 1. Improper Rigging – B30 Duties • Crane Operator • B30 – Not responsible for conditions not under his DIRECT CONTROL • Ensuring load & rigging weights have been provided & calculating net capacity for all configurations • Understanding BASIC load rigging procedures. • But, Crane Operator & Oiler can’t get involved in rigging then claim no involvement in accident • If concerns re dangers of lift, crane operator MUST shut down lift • Document if Lift Director overrides Crane Operator’s Concerns • Riggers & Lift Director • Most often the cause of the accident • Lift Director’s B30 Duties • Load must be properly rigged & balanced • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director

19. 2. Ground Collapse – Examples • Examples • Often catastrophic outcome • Crane Tips when outrigger sinks • Load dropped • Crane causes damages when it tips • Crane’s Outrigger punctures underground utility • Underground Water & sewage lines • Gas line explosion

20. 2. Ground Collapse –B30 Duties • Crane Operator • Duty to know what type of site conditions adversely affect crane operations & consulting with lift director • Lift Director • Ensure area for crane operations is adequately prepared • Site Supervisor • Ensure area for crane is adequately prepared • Address poor soil conditions that may impact crane’s operations

21. 3. High Wind Conditions – Examples • Examples • Sail Effect on Load • Wind Tunnel Effect not Assessed • Structure under construction • Structures surrounding lift • Operating Too Close to Capacity in High Wind Locations • Offloading at docks • Wind Farms • Tag lines • Failure to use tag lines • Improper # of tag lines • Reliance exclusively on Tag Lines for huge loads or big winds • Delay in Shutting Down Lift after Operator remarks on Wind Conditions

22. 3. High Wind Conditions – B30 Duties • Site Supervisor • Address wind velocity, gusts & other weather conditions that impact crane’s operations • Lift Director • Ensure area properly prepared & addressing safety concerns raised by operator • Crane Operator • Using load charts to determine correct crane configuration to suit load, site & lift conditions • Communicating adverse site conditions & factors re crane capacity to lift director • Consider Manufacturer’s recommendations for securing the crane in storm warning exists • Shut down lift if unsafe conditions

23. 4. Load Over Crane Capacity – Examples • Wrong Info programmed into LMI • Wrong load weight provided by Customer • Inadvertent error or transcription of numbers • Liquid or other substance still in tank etc • Improper # of Counterweights • Too few of counterweights utilized • No counterweights used on extremely light loads at long distances • Often with very experienced operators • Often day-end accidents

24. 4. Load Over Crane Capacity – B30 Duties • Crane Operator • Use load charts to confirm correct crane configuration for load, site & lift conditions • Ensuring load & rigging weights have been provided & calculating net capacity for all configurations • Lift Director • Load must be properly rigged & balanced • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director

25. 5. Load Swinging into People & Property - Examples • Often occurs • Blind Lifts or Partial Blind Lifts • Inexperienced or Inattentive Signalmen • Hand signals or radio signals fail • Operator’s Failure to Control Load • Usually an allegation that load not moved smoothly • Riggers’ Failure to Control Load • Load swings during rigging • Load swings when being landed • Riggers push/pull load • Taglines Insufficient or Improperly Used

26. 5. Load Swinging into People & Property – B30 Duties • Crane Operator • Operating the crane’s functions – under normal operating conditions -- in a smooth & controlled manner • Knowing standard & special signals • Not engaging in activity to divert his attention • Not responsible for conditions not under his DIRECT CONTROL • Understanding BASIC load rigging procedures. • If concerns re dangers of lift, crane operator MUST shut down lift • Riggers & Lift Director • Most often the cause of the accident • Lift Director’s B30 Duties • Load must be properly rigged & balanced • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director

27. 6. Load/Crane Crush & Pinch Points - Examples • Examples • Crane Injures People • Crane’s Pinch points • Outriggers • Crane Cab (not common) • Load Injures People • Improperly secured load shifts • Riggers use hands to control or move load

28. 6. Load/Crane Crush & Pinch Points – B30 Duties • Crane Operator • Observing outriggers or using signalperson to observed during extension, setting & retraction • Not responsible for conditions not under his DIRECT CONTROL • Riggers & Lift Director often the cause • Lift Director’s B30 Duties • Restrict unauthorized access to crane’s work area • Load must be properly rigged & balanced • Appointing competent signalperson • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel & those involved in crane operations understand duties & associated hazards • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director • Ensuring crane operations are coordinated with other jobsite activities • Ensuring area for crane operations is adequately prepared, including traffic control to restrit unauthorized access

29. 7. Landed Load Not Properly Secured - Examples • Examples • Tilt Walls improperly braced/welded • Roofing Trusses domino • Joists not properly secured • Why it Went Wrong • Often trying to minimize hourly cost of crane or when job is behind schedule

30. 7. Landed Load Not Properly Secured – B30 Duties • Almost Never Crane Operator’s Responsibility • Not responsible for conditions not under his DIRECT CONTROL • Understanding BASIC load rigging procedures. • If concerns re dangers of lift, crane operator MUST shut down lift • Riggers & Lift Director • Riggers or other contractors are most often the cause of the accident • Lift Director’s B30 Duties • Load must be properly rigged & balanced • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director • Ensuring crane operations are coordinated with other jobsite activities • Ensuring area for crane operations is adequately prepared, including traffic control to restrict unauthorized access

31. 8. Equipment Dropped from Overhead - Examples • Examples • Materials, Equipment & Tools Knocked off Structure • Often occurs during Assembly/Disassembly • Materials & Equipment drop from within load • Bundled steel • Hardware contained within a load • Small Error … Big Injury • With increasing velocity from multiple story fall, even small piece of steel, wood etc can have effect of speeding bullet • Seemingly innocuous incident can have catastrophic consequences • Traumatic Brain Injuries • Paralysis • Amputations • Blindness • Death

32. 8. Equipment Dropped from Overhead – B30 Duties • Almost Never Crane Operator’s Responsibility • Not responsible for conditions not under his DIRECT CONTROL • Understanding BASIC load rigging procedures • Riggers or other contractors are most often the cause of the accident • Lift Director • Load must be properly rigged & balanced • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Ensure personnel involved in crane operations understand duties & hazards • Ensure preparation of area for crane operations • Ensure traffic control in place to restrict unauthorized access • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director • Ensuring crane operations are coordinated with other jobsite activities • Ensuring area for crane operations is adequately prepared, including traffic control to restrict unauthorized access

33. 9. Falls - Examples • Examples • Falls off Structure • Very common lawsuits • Lack of Fall Protection & Differing Fall Protection Required by Industry • Falls off Crane • Typically occurs during Assembly/Disassembly

34. 9. Falls – B30 Duties • Almost Never Crane Operator’s Responsibility • Not responsible for conditions not under his DIRECT CONTROL • If concerns re dangers of LIFT, does crane operator have duty to shut down lift when others aren’t wearing fall protection? • Signalmen & Riggers Often the Cause of their own Fall • Lift Director • Stop unsafe crane operations • Address/overrule operator’s concerns re unsafe conditions • Ensure rigging is performed by designated personnel • Site Supervisor • Ensure rigging crew is supervised by a qualified person • Ensure that a qualified person is designated as the lift director • Ensuring crane operations are coordinated with other jobsite activities

35. 10. Crane – Auto Motor Vehicle Accidents • Common Crane MVAs • Crane Protruding into Roadway • Catastrophic Injuries Possible • Outrigger Pads Falling Off Crane • Minor incident with catastrophic potential • Tire Blowouts • Minor incident but difficult to defend • Rear End Collisions • Multiple claimants & High Exposure • Habit of following same distance as our cars • Difficult to Defend Liability • Collisions with Parked/Stopped Cars

36. Common Litigation Issues • Frequent Allegations that crane operator didn’t • Move load smoothly • Respond immediately to signals • Stop Lift when Unsafe Conditions Present • Fulfill Responsibilities outside the “Hook to the Wheels” • How to Defend Frequent Allegations • Crane operator’s experience, training, but especially course & practice and prior lifts on the accident site for this customer • Immediate Scene Inspection & Witness Interviews • Common Difficulties with Defense • Load in the blind so no crane company witnesses • Crane Operator & Oiler can’t argue no breach of B30 Duty re rigging configurations if the crane operator and oiler are involved in rigging • Inexperienced Riggers or Signalmen • Difficult to defend if operator noticed problems but didn’t shut down job or raise issues with lift directors • Different Outcomes for Same Accidents in Different States • Contributory negligence vs comparative fault • Joint & several liability • Borrowed Servant • Anti-indemnity Statutes • Vertical Immunity & Horizontal Immunity

37. Litigation Issues – Rental Ticket & Contracts • Terms & Conditions • Identify who responsible for rigging • B30 & other industry standards governing • Indicate rigging equipment inspected before lift by lift director &/or riggers • Ground & Site Conditions Adequate • One signature during course of multi-day job binds all days • Document if crane operator is directed by Lift Director to proceed with lift after safety concerns raised • Ticket MUST be signed before lift • NEVER agree to duties in a Master Contract different from B30 & OSHA • Breach of Contract Claims have NO INSURANCE COVERAGE

38. Litigation Issues –Safety Meetings & Dispatch • DOCUMENT DOCUMENTDOCUMENT • Avoid “he said – she said” • Note Mobilization & demobilization areas, especially if moved • Reflect info & hazards acknowledged by customer • Document walking site with customer marking mob/demob, travel & outrigger locations • Document Weight Provided by Customer

39. Litigation Issues –Preserve the Evidence • Immediate Scene Inspection • You should observe, document & possibly photograph • Rigging configuration & rigging equipment conditions • Site configuration including possible Wind Tunnel effects • Wind & weather conditions • Before crane is moved, document all positions of crane • Location of Crane in Relation to the Place where Accident/Injury Occurred • Experts Hired by Your Defense Counsel should Inspect Scene for witness marks, download LMI data • Immediate Witness Interviews Critical especially if Crane Operating in Blind • Critical to Preserve the Evidence • Rigging Straps & Lift Instructions • Crane Conditions, LMI, • Repair & Maintenance Records • SPOLIATION OF EVIDENCE Defense • Jury instructed that they may “presume” missing evidence would have been harmful to your case • Difficult to get persuasive re-enactments in evidence for trial if we don’t document conditions as they existed at time of accident