Safety on site

ACCIDENTS

COST EVERYONE

THIS YEAR HAS SEEN A LARGE BOOST IN FUNDING FOR INFRASTRUCTURE JOBS DUE TO THE NEED FOR ECONOMIC STIMULATION. UAA INSURANCE EXPLAINS THAT WITH AN INCREASE IN WORK COMES THE NEED TO ENSURE SAFETY PRACTICES ARE CONSISTENTLY IMPROVED AND UPHELD.

According to George Grasso, Chief Services Officer for UAA, there is a constant battle for companies to maintain quality staff, manage expenses and make every effort to maintain a high level of training and OH&S standards, coupled with the ongoing pressures of new enterprise bargaining agreements and COVID-19.

Despite these efforts, Mr. Grasso says he has seen an increase in the number of crane accidents, incurring large losses in terms of material damage to machines.

“Last year was an horrendous year as far as the number of crane incidents we’ve had to deal with and almost all of them appear to be a result of extraordinary costly but simple mistakes,” he says.

“We have seen a lot of similar types of incidents. This has led to very expensive machines being damaged, not being available for work and having to go through the time-consuming process of being repaired. In every instance, the customer is reliant on the insurance company to oversee the repair process.”

Mr. Grasso confirms UAA is a long-term supporter of the crane and construction industry but, if the current level of incidents continue it will be reflected in increased insurance premiums.

“If the number of incidents going to continue to grow, it is inevitable that it will have an impact on insurance premiums to offset such costs, none of us want this. We want to encourage all construction businesses to take a step back, refocus on their people and processes,” he says. “It’s important to understand where a company’s staff are regarding training and examine how competent they are at operating the machines from cranes to excavators. We also think putting in place

George Grasso, UAA Chief Services Officer.

better controls, measures and incentives to encourage staff to be more diligent and focused should be considered.”

Mr. Grasso confirms safe workplace authorities like Work Cover are diligently policing the industry however, if there is an incident whether there is a fatality or no injury, prosecutions can still follow. Work Cover continue with extensive investigations that will drive change to crane hire companies, manufacturers and the industry as a whole, he says.

Following some incidents, it can take several months to repair the damaged construction equipment, which can go beyond the limit of indemnity for clients with Business Interruption Protection. For clients that don’t have the optional extra of Business Interruption Insurance, UAA makes every effort possible to find ways to subrogate from another liable party and will bring in the uninsured losses.

In these cases, many of these machines are still on finance and with UAA the loss of revenue also covers lease repayments. In addition to such incidents, the years and costly legal exercises in defending a client’s position with legal liability demands placed upon them, can be exhaustive and emotionally draining Mr. Grasso says.

“From our perspective, incidents are of major concern and UAA knows the industry is only going to get busier. We want clients to take stock of their business, understand what is happening at all levels and examine how to further mitigate potential risk and losses,” Mr. Grasso says.

He goes on to discuss the chain of responsibility when there is any incident and what impact this has on the industry in general and insurance premiums specifically, let alone liability exposures and in addition when there is an unfortunate fatality or injury.

“You are trying to do the best thing by the project and the construction company, but sometimes you have got to stop and think about the dangers of the task,” Mr. Grasso warns.

“If there is another bad year like 2019, UAA will have no option but to increase premiums, this is the only way we can remain in business and to provide protection to the industry.”

Mr. Grasso says with over 48 years of servicing the industry, UAA wants to make sure it remains viable to its customers for many more years to come.

“We can’t do it on our own, the industry needs to continue to fine tune OH&S practices and mitigate risks.”

As UAA is a local insurer, the business has a comprehensive understanding of Australian construction machinery, especially crane equipment.

Mr. Grasso says UAA will be there to best protect and encourage best practice safety for continual improvement of the industry.