Hi, welcome to Inland Marine Underwriters Association's class, Understanding Contractor's Equipment. I'm Lillian Colson, and I'm thrilled to introduce today's class on behalf of IMUA. Thank you to our instructors, Casey Davis and Jason Baynard, whom I'll introduce formally shortly, for the time that they devoted to preparing the class today, including all the content that went into it. Additionally, I'd like to thank everyone who joined us today. We have 226 registered to attend this class today, and we look forward to sharing and learning and connecting. And a big thanks to my colleagues, Ali and Eileen Monreale, for working with the instructors behind the scenes to get this class together today. Before we get started, I have a couple of quick items to review. To help reduce strain on your local network, we suggest that you close all unnecessary browsers and internet-reliant programs. If you entered by using the desktop version of the app, you will find your attendee control panel on your screen, and it will minimize by default. At any point, just click on that orange arrow icon, and then uncheck the auto-hide option. So that's a right-click on that orange arrow icon, unhide the auto-hide option. And then if you entered through the browser, you'll see the control panel at all times. You'll note that there is a PDF of the handout for today's slide presentation in the handouts tab that you can save to your computer to access later on. Our instructors will announce two 10-minute breaks today, one just about every hour. We encourage you to ask questions. We want this class to be as interactive as possible. If you have a question for our instructors, due to the large size of this class, please use the question box to share your questions or comments, and our instructors will keep an eye on the question box today. To encourage your participation at the end of the class, we'll announce two $25 Amazon gift cards to the most engaged attendees. We all learn better in an interactive environment, and Casey and Jason look forward to your questions. So please go ahead and ask them at any time. I'd also like to reference IMUA's policy statement, reminding all to refrain from entering into any discussions on matters affecting rates or conditions of insurance contracts. Now it's time to introduce our instructors. Casey Davis is a senior inland marine and property underwriter at Star Company. Born in sunny San Diego, California, Casey graduated from Clark University with a Bachelor of Art degree in business administration with a concentration in finance. She began her insurance career in 2007 as an underwriter trainee with CNA Insurance. Casey has experience with several underwriting lines of business, including general liability, workers comp, auto liability, and inland marine. She lives in Atlanta, Georgia with her husband and her eight-year-old daughter. During her spare time, Casey enjoys completing do-it-yourself projects around the house and volunteering as a co-leader for her daughter's Girl Scout troop. This is Casey's debut instructing for IMUA, and we could not be more thrilled to have her, and we're really honored to have her here with us today, and we're very excited about it. Welcome Casey. Jason Baynard is vice president of underwriting and inland property and casualty at NBIS. Born in Silver Spring, Maryland, Jason graduated from Clark Atlanta University with a focus on public relations and a minor in business. He began his insurance career in 2003 as an underwriter trainee at Chubb Insurance in Atlanta. Throughout his professional journey, Jason has lived throughout the Southern Midwest and South and maintained a strong focus on industries such as energy, banking, transportation, and inland marine insurance. Jason has been a valuable member of IMUA's transportation committee, construction committee, and he has also contributed to numerous papers and been involved in a number of seminars, webinars, and classes for IMUA. He's co-presented IMUA's webinar on transportation issues and also lessons from losses at IMUA's annual meeting as well as the intro track at IMUA's annual meeting. He's also done some classes on rigors, liability, and installation floaters. Welcome Jason. In addition, Jason has been a valuable resource and an enthusiastic member of IMUA, so he's really championed the association. He is receiving the excellence in education award at the upcoming annual meeting in 2023. Jason and Casey, please take it away. Fantastic. Thanks for that intro, Lillian, and Casey, it's really good to see you again. I need to hook up on those lifestyle cookies. I didn't realize you were, you were, you had the- Five dollars off. That's awesome. That's awesome. I'm really excited to spend some time with you guys today just to talk about something that's near and dear to both of our hearts. This is contractors equipment. We see it all around us and definitely going to take a deep dive into it today and look forward to it. As Lillian already described, let's just be conscious of the standard IMUA statement which you guys can find in your PowerPoint. Today, we're going to really spend some time just taking a kind of a macro overview of contractors equipment, exactly kind of what it is in general, and then we'll take a deeper dive into just the various types of contractors equipment. It's such a vast class of insurance, and so we'll touch on some of the key exposures that are within the class. We'll then go into some of the major underwriting factors. We'll talk a little bit about forms and coverage, risk management, loss control, loss prevention and control, as well as working with your loss control, and then we'll close out on some claims examples and just trying to take a look at the contractors equipment segment from the claims perspective. But ultimately, we really want you guys to just focus on what are your concerns from an underwriting standpoint when it comes to the class. And then hopefully, as Lillian alluded to, we do have the question box here. But if there's any sort of ideas or talking points that you guys want to try to interject into our time, we're certainly open to it. Casey and I both will be monitoring the question box here. So what are your own experiences if you guys have a brief story that you feel you can fit into the box that Casey and I can regurgitate? Feel free to interject at any time, guys. So with that said, contractor's equipment, it's definitely a desirable class of business. You know, I can tell you, and working in both the property and casualty space in depth, contractor's equipment kind of provides the three desirable characteristics that really any insurance carrier will be looking to partner with from a risk standpoint. Traditionally, contractor's equipment is extremely profitable. Availability, there's a vast number of different types of contractor's equipment, which we'll go into here in a second. But you know, which ultimately allows every carrier that's represented, I think we mentioned there's over 200 participants on this call, all of the carriers that you guys represent or work with ultimately have their own appetite for this class of business. And you know, we all essentially make up this industry throughout the United States. And so availability of coverage is a key factor when it comes to what we call CE. And then there's just the ability for the underwriters, us collectively having the talent to be able to navigate the exposures that come with the various types of contractor's equipment that we underwrite. With that said, the top five industries, I thought this was a pretty neat stat to kind of start off the time in the United States are going to be energy, manufacturing, transportation, and healthcare. And you can also throw agriculture in there. But one of the classes that I thought should have been, possibly could have been mentioned on this list, and I pulled this from an ISO resource, is construction. But ultimately, if you think about it, minus the transportation piece, construction goes into developing all of those industries that we just discussed. And within that construction segment is obviously going to be your contractor's equipment exposure. Contractor's equipment in the United States made up, as of 2021, made up just under $150 million, with the projection of going up to over $225 million in 2028. So it's a space that's going to continue to grow. And there's always going to be a need to ensure it. Obviously, technology is changing quick, and it's something that we'll want to keep an eye on as underwriters as things are changing constantly around this class. From a coverage standpoint, it's primarily written on a floater, what we call a contractor's equipment floater, meaning that it's going to allow the piece of equipment to be insured, to go from place to place. It's not fixed property. We're talking about contractor's equipment here, guys. Oops, hold on. All right. So coverage forms are typically tailored to build to meet the needs of the industry that's out there, depending on the ebbs and flows. I think pretty much everybody on this call was in the insurance industry, or maybe even just entering in the industry throughout COVID, which was really 2019 and 2020. But during those times, you might have seen a slow, if you had a contractor's equipment book of business, as far as the utilization of the risk. Maybe as much as I'm seeing, coming out of COVID, we're starting to see a whole lot more activity around the contractor's equipment space. So COVID-19 offered up a perfect example of how equipment needs and demands can ebb and flow. So I definitely think that we're cranking throughout the economy right now, as contractor's equipment usage is at an all-time high. We're seeing that just on demand, or even the ability for some of our insureds to be able to go out and buy new pieces of equipment, depending on what they're doing. They may even have trouble finding it, just given the amount of demand that's taking place in the United States for equipment, as the construction industry is very active right now. And then for those of you who maybe even dabble in the energy or oil field work, the price of oil is definitely strong right now, and I know that a lot of the exposure that we'll touch upon in some of the chapters here related to oil field work is in demand right now. But that can fluctuate, and I think the energy, oil, and gas space can fluctuate at really cyclical. Every two to three years, you may see an increase or decrease in demand, just kind of where we're at, depending on where we're at within the cycle. Even with some of the more specialized pieces of contractor's equipment, you may notice that some of the heavy, more sophisticated cranes, as an example, may be laid up, and it could actually be down and not used for a number of months until certain projects are ready to kick off. One thing I experienced specifically through COVID-19 is that municipalities continue to do work, and so a lot of the heavy contractor's equipment to support municipality work throughout the country were able to keep those guys busy. But just recognize there's always an ebb and flow, and we always need to be aware of the economic state of the marketplace. As we look to insure contractor's equipment, just be conscious of where we're at within the cycle. Casey, jump in any time you feel like you need to. But who needs contractor's equipment? Pretty much everybody that supports those would ultimately become those five economic leaders within the country, but your contractors, your subs, your home builders. We see it, guys, going to and from work. Municipality projects, Lord knows we've got some projects here in Atlanta that have been going on for decades, it seems like, street and road. Contractor's equipment is all around us, and so it's pretty organic to the needs of our various insurers and industries that have a desire or just an organic need for the coverage. And one of the good resources I will say as we go through this presentation is to make sure you do check out the IMUA website. You can find a lot of this information here that will help kind of supplement this time. One thing to really be cognizant of is the distinction between mobile contractor's equipment and automobiles. Under the Inland Marine definition, the forms in your standard AAIS forms and your ISO forms for Inland Marine is not going to pick up coverage for vehicles designed for highway use. But I think you guys can imagine there can be a blur there. Ultimately, when we talk about distinctions within contractor's equipment, the idea is if the unit is designed, primarily designed for work at a job site, it's going to be picked up under contractor's equipment versus if it's going to be more of like a ready mix truck that may be a cement mix truck that may not necessarily there to just mixing cement. That could be picked up more on an auto policy. So really guys, when you're thinking about contractor's equipment and trying to compare it to maybe is this an auto, is this an equipment, really look at what the intended use is of that piece of equipment. Another good example is a concrete pump truck, which we'll see in a slide here in the next chapter. Those are really designed to act as a conduit for concrete pump at the job site. Ultimately, that is a piece of contractor's equipment. Although you'll find a lot of the exposures related to concrete pump trucks are very similar to your standard over the road exposures, which are going to be just almost essentially your physical damage risk from auto accidents, turnovers, and fires. So we'll kind of dig into that here shortly. And I think we actually got a question here. How would contractor's equipment be defined different than property? Would it be defined in the exclusions of the property? Derek, it looks like Derek Huddleston asked that question. That's actually a great question and we're going to touch upon that in a bit. Recognize in macro, it's going to be the true mobile equipment, the mobile nature of the property that you're going to be looking to insure versus your real and personal property, which is going to be more physically restricted to a specific location through brick and mortar oftentimes. So we'll touch upon that a little further, but hopefully that answers your question, Derek. And again, guys, feel free to chime in as we go through the time. So contractor's equipment by nature is a non-file class of business, which really allows us as an undergrading industry to really provide specific rates, terms, deductibles, just based on what the exposure is. There's two services that really are set up fundamentally to serve as the form basis for contractor's equipment, one being ISO or the Insurance Services Office or AAIS, which is the American Association of Insurance Services. I trust that fundamentally, depending on the carrier that you guys represent, your organization could be using ISO or AAIS forms, or you guys could be using proprietary forms that are going to be specific to your actual carrier. Either way, these are forms which can be non-filed or filed, just kind of depending on the setup of your organization. But two fundamental things must be true when we talk about forms. They need to be readable and they need to be understandable. And that's just fundamentally, we should be able to interpret our coverage form. And trust me, if you don't know or you run into issues, the real litmus test is when that plaintiff attorney gets a hold of that coverage form in the event of a loss. But fundamentally, those two things must exist at all times. And then also recognize, in addition to your AAIS or your ISO or your insurance carrier's primary forms, there's also going to be a bunch of endorsements that can supplement those coverage forms so that that'll allow coverage to be tailored to a specific piece of equipment, in this case, or coverage need. So again, we're a vast class here and everybody does it different. I would encourage all of you guys on the call to really just look at your contractor's equipment form that you're selling, which is ultimately your product from an underwriting end, and just get to know it. With that said, Eileen, I think that we actually have a good poll question here, which will kind of give us some perspective on how you guys are set up out in the audience. Oops, there we go. My company uses the following contractor's equipment coverage form. If you guys can maybe just take a minute, just out of curiosity, do you guys use the AAIS form, the ISO form, a proprietary company form, a broker form, or a combination of all four? Great. And I think we can go ahead and see the results. Nice. You know, a combination of the above, which is awesome. I think that's really good. And I really think that just really speaks to the nuance of everything that we have to look at, right? So it could be a borrowed language for a manuscript endorsement, or even a broker form that could be used in combination of some of the standard company forms. So that's great. Casey, did you have any feedback to add on that? No, I don't. I think you've covered it. Yeah, okay. Okay, make sure I'm not jumping ahead here. All right. So fundamentally, how does it work? The equipment owner, obviously, guys, fundamentally is gonna go to a retail agent or an insurance broker. In turn, that said, agent or broker will be contracted with your carrier or your MGU, depending on how you guys are set up. And they're gonna just be looking for insurance and coverage in case an accident happens. The coverage can be written on both a scheduled or blanket basis. And the policy could either be on a basic name peril form, which we'll touch upon, or it could also be an all risk form. So that's just fundamentally how contractor's equipment is solicited throughout the U.S. And with that said, let's go ahead and take a jump into, forgive me, guys. Jason, I think it jumped from slide seven forward. So I may have missed a slide or two. Yeah. Is that slide seven? I think it was after the poll, I think it jumped. One more? Yeah, I think that, I think it jumped past that. Okay. Not a problem. So yeah, and again, guys, we kind of touched upon this slide on seven. Again, who needs contractor's equipment coverage? Your subs, your corporations, home builders oftentimes, some of you guys probably specialize in the home building space. Your installation guys, right? Yeah, whether they're doing stadium builds, like some of the larger football stadiums, it can get as big as that, or even down to your simple roofers, or again, your homeowner's contractors. We kind of touched upon the different types of forms, Eileen, and then we jumped into the poll. So I think we're pretty much caught up here. And again, yeah, we just kind of talked about fundamentally how the arrangement works just between solicitation of insurance. So I think that it kind of leads us into more of an exciting part, or kind of the next step in this, is just the types of contractor's equipment. So Casey, I'll turn this over to you, and we can talk about some types of equipment that we insure. So in this module, we'll go over some of the more popular Inland Marine classes of business, and the type of contractor's equipment that is associated with those classes. So this list isn't all inclusive, but it's a good start if you're working in an underwriting role, or you may be able to identify some sales opportunities if you're in a more production-driven role. All right, so our first class we're gonna look at is the street and road contractor. To Jason's point, you can see this type of operation everywhere. It's very popular in the US. Almost 200,000 companies that operate in this space. I think when you go into your office, if you're commuting in, I think for me, I saw maybe five or six project sites doing this type of work. So it's everywhere. So it's a lot of opportunity. It's a growing sector. The common types of equipment that you'll see is graders, rollers, scrapers, milling machines, tractors, asphalt plants. And a lot of this equipment you're gonna see with each class, and we'll dig into what they do in a few slides, but just know that a lot of this equipment is used across several classes. So the key exposure is gonna be theft, vandalism, fire, and collision. And as an underwriter, we want to consider several things when we're looking at an account, but one of the main things that will pop up on each slide is the job site security. So we wanna know, what's their practice? Are they leaving the equipment there overnight? If they're leaving the equipment there overnight, are they taking the keys out of the ignition? I think a couple of years ago, I had a claim where the contractors were done for the night and they left the job site, but they left the keys in the ignition. So lo and behold, the next day you get a claim, $150,000 tractor has been stolen. So definitely wanna avoid that whenever possible. Preventative maintenance, we'll talk about that in a bit more detail. And then of course, experience of the operators. So for some of these classes like crane and rigging, concrete pump trucks, the experience of the operators is imperative. So we definitely wanna focus in on that. Hey, and to that point, I think these key exposures and the underwriting considerations are gonna run fundamental through pretty much everything that we go over. So something to pay attention to guys. Next slide. A little delay there. So now just to take a look at some of the equipment that we have listed. So this is a roller and broom. And like I said, you've probably seen this, just count how many times you see this type of equipment on the side of the road, as you commute into the office or wherever you're going, it's pretty much everywhere. So that's the roller and the broom. This is the front view of a roller. It's the more traditional style roller. This is the pneumatic roller, which has four wheels that are on axles. So there's two axles there and there's four wheels per axle. This is kind of the newer technology with regards to the rollers. Next slide. Road broom and street sweeper. Pretty self-explanatory there. A milling machine. So what this does is it's a process used for smoothing out the asphalt. So it'll remove layers of asphalt so that the pavers can come back in and repave. So you'll see this quite a bit, especially if you're in rural areas or areas where the streets are used heavily, there's a lot of construction to get those streets repaired. And this is a finisher paver. Yeah, you'll see these in parking lots or anywhere where they're just trying to smooth out asphalt. This is a truck-mounted crash attenuator. Basically, it's a crash cushion that's mounted for a rear safety. So at a project site, you might see this just to kind of stop traffic or avoid accidents at the job site. I actually want to jump in on this one. This is a really important piece of equipment here. And I dare to say that maybe some of us haven't even noticed these at a job site. But if you're going down the highway, again, to Casey's point, this is going to create a cushion. So all the distracted driving that's going on nowadays, if somebody's driving down the road, ultimately this unit is set up to protect the piece of contractor's equipment that we're looking to insure oftentimes, especially when it comes to street and road exposures. And so I think it's one thing that you can ask from an underwriting standpoint as you guys are working your files, if you're noticing that these are on the schedule, this is an absolute good thing. And you want to actually make sure that these things are in place, because again, they can help mitigate severity of a loss or a loss altogether. And so a really neat piece of equipment. And again, as you guys are just driving around your communities day to day, look for them, because they are out there. Our next slide, or next class we'll look at is Earth Movement and Excavation. So another really popular class. And like I said, a lot of this equipment will overlap. And the purpose is just to kind of give you a general understanding of what this equipment does. So maybe if you're looking at an equipment schedule, you're not 100% sure of what their operation is, because we all know we don't get a ton of information on our apps on our phones. We don't have information on our apps a lot of times. You can look at the contractor's equipment schedule, and it will give you some clues as to what exactly the risk is doing. So. Let's see. So here we have our first piece of equipment. I wanted to touch on, I'm sorry, there's a little delay with the slide. Are you seeing the scraper slide, Casey? I was trying to go back. Yes, so on this one also, well, with all of them, fire is a huge exposure. So we'll touch on that a little bit more. And I think it's the next couple of modules that there was some new equipment that we added there, the power shovel and the trencher. We'll go over that in a bit more detail on slides to come. Okay. So this is the scraper. It's used to move or remove dirt, gravel, or other materials from the ground surface. This is our front-end loader, which is pretty self-explanatory, I think. Yeah, a lot of these items, you can find it in kind of general construction sites, but then you also may see it if you guys are involved in the mining industry as well, when they're working to remove a lot of earth. Sorry about that, jumping ahead a bit here. No problem. So I think we were on the bulldozer. Okay. You're right, there is a delay. Okay, there we go. All right. So we have the bulldozer, which is used to push large quantities of soil, sand, or rubble. Motor grater. Okay. The trencher, this is another one that you will see in several other classes, like your utility contractors will also use this. It's to dig trenches, and you can lay pipe or cables or install drainage using this type of machine. So it's a very popular one. Yeah, even from like your installation, we talked about installation type risk. If you do have a power company or to your point, maybe somebody out in the oil patch that is involved in laying a lot of pipe, you would see something like this for sure. And if you also notice, there's some tracks right here on the equipment, because it's generally going to be in really remote and kind of tough to get to areas. And so these are all things to consider when you're evaluating what your schedule looks like. Okay. Concrete contractors. This one is near and dear to Jason's heart, I know. Some common types of equipment. This is another very popular class. There's around 82,000 companies that work in this space in the US. We see these on the road all the time, the concrete pump trucks, the ready-mix trucks, and a concrete batch plants. You might drive by those every so often. The key exposure here would be the boom collapse, which we'll get into that a little bit more in just a second. Upset and overturn, to Jason's point, a lot of this equipment is working on very rough terrain. Upset and overturn is a big exposure for you. Fire and explosion, and theft. Our next slide. There we go. This is a concrete pump truck without the boom extended. As you can see, this is how it looks when it drives by you on the road, going 90 miles an hour. No, hopefully not. But this is what the concrete pumper looks like without the boom extended. Then the next picture, I think you saw. Yeah. Before we go there, I just want to point out, guys, look at these outriggers, which are going to be really consistent with a lot of our pieces of contractor's equipment. Casey had alluded to ground conditions, and some of our guys operating in some really tough terrain, or maybe even some uneven terrain, depending on where in the country you're at and the type of project you're at. But these outriggers down here are going to be really what offers up the stability for the piece of equipment. Ultimately, there's normally a wood pallet that's up underneath them. Again, it'll just give us some stability into the risk as it's performing work. But be mindful, again, of where you guys are actually doing the work. Maybe in the upper Northwest, where it tends to be a little bit more foresty, and they could be operating in the hills. You could be more susceptible to rollover. Again, this isn't anything specific. Concrete pump trucks per se, but really all contractor's equipment, where there's going to be an operator sitting in a cab. The lag. Here's the concrete pump truck, same truck that we just looked at with the boom extended. Look at that reach. It's quite a bit of reach there. On the next slide, we'll go into how exactly the concrete gets from the ready-mix truck to the concrete pump truck. When we think about boom collapse, it would be any claim involving the collapse of this boom, which is this extended piece that delivers the concrete to the projects. For those of you who are not familiar with concrete pump trucks, ultimately, they're designed to get concrete into tough to reach places. I think it's somewhat self-explanatory by the extension of the boom. What you'll have is a group of guys down here with some smoothers or some pavers to even out the concrete as it pours out of the truck. Here, guys, is a perfect example of your ready-mix truck, which will essentially back up into the concrete pump. Then the pump in turn will act as a conduit and will extend the boom out, and will allow the concrete to be spread in its applicable place. Anything you want to add to that, Casey? No, you took the words right out of my mouth, Jason. Yeah, for sure. It's pretty neat. I encourage you guys, one of the things we've been blessed with as a group, as an industry, is to have YouTube. I really encourage you guys to YouTube some of this stuff and see the relationship on how it works. Here's just your batch plant where the concrete is made prior to. They mix raw materials such as sand and water, and they get the concrete ready to go into that ready-mix truck that we saw on the previous slide. I think we have a question. Yeah, it looks like Steven asked about, do they carry multiple types of thickness of outrigger mats? Absolutely. So most of the ones that I've seen are wooden. However, there are some additional types of outrigger mats that are used. Again, depending on where you guys are at, if you guys are out in the forest cutting trees, and we'll cover logging here in a second, they may use a different type of outrigger pad than obviously your guy that's doing residential home construction and maybe has a 40-ton crane on a much smaller scale. What are the reasons for boom collapse, Sherelle asked, Sherelle Lemon. A lot of it, depending on what it is, right? Boom failure, you may not see as much on concrete pump side as much as the crane, which we'll kind of cover a bit as well when we're actually lifting heavy objects. I think that's primarily where you're gonna see boom failure take place, and we'll cover that in a couple of the modules going forward. But great question, Sherelle. For rating purposes, this is from Jill. For rating purposes, what is the typical lifespan of the pump truck considering the boom? That's a great question. I think a lot of it just depends on the usage. Again, some of these companies, you're insured maybe only uses five or six pumps and they could lease them from a pumping company and maybe they'll exchange out equipment every three to five years. Other larger companies may have a service plan on their fleet with dedicated mechanics and they're able to stretch out the use of the pump beyond that. So I think a lot of that is just gonna vary from insured to insured. So appreciate the questions, guys, and hopefully that's making sense. Our next class is the utility contractors. This is a very wide class. It can be anything from the installation of water and sewage pipes to power lines, telephone, TB cables, kind of runs the gamut, and even some oil and drilling to Jason's point earlier. So a piece of equipment that we've added to the list here is the directional drilling machine. So this is, to underwrite this type of equipment does take a certain skillset because there's an increased exposure with the directional drilling referred to as the lost underground. And that exposure, it's significant because you think about flood or even if the equipment just gets stuck down there, you're providing coverage for that. So you really wanna think about your deductible structures or maybe putting in a sublimit when it makes sense to do so to really make sure that you're comfortable with the exposure for that drill that's gonna be downhole. I think we have a video to kind of detail a little bit more on how the directional drilling machine is used. Excellent. I will try and watch it now, Casey. That's a great video. Oh, Casey, we're having a hard time hearing you. Can you guys hear me? I'm sorry. So I think someone was saying that they couldn't see the video. I don't know. I think if there were individual firewalls on some companies, but I think most people, if you could chat in and let us know if you were able to see the video, I think most people were able. OK. Yeah, that's true. In fact, the link's right in the slide, Jared, in the follow-up, so I'm sorry about that, Kristin. That was an advertisement, but it's still some really good information about how the directional drilling works. Yeah, for sure. And guys, keep in mind, depending on the type of contractor that you're insuring, are you covering what's going down the hole? Some of those drill bits could actually be rather expensive, again, depending on the type of work that you're doing. I know this section is covering utility contractors, but if you're actually covering a drilling rig itself, you could actually be going pretty deep down the Earth, into the Earth, and recognizing if you're providing coverage for those drill bits, and either they get stuck or break, you could actually be on the hook for some rather large limits. So I thought that was a really good video that Casey presented, and hopefully you guys find it useful. Oh okay I don't know if we're stuck or if you click on the slide hopefully your arrows will move it like click on it and then try moving your arrows back and forward it's not working I won't if you know me I've clicked seven times okay let me let me look on your organizer and see what happens when I'm do it and then I'm going to give you control again you boy control okay so let's try it once more Jason and if not I will move it and then yeah I moved it so for now do you just tell me and they do what the break will figure out why so along with the directional drilling operation we just saw this is the an excavator which is used at some of the larger job sites similar to a backhoe but just use that larger larger job sites yep and here's the backhoe so you'll see these that just kind of small to medium medium job sites and again guys it's really good to notice the outriggers that you see here again what you're going to provide the stability I mean if you think about the amount of earth that these backhoes move obviously from a pure functionality standpoint you want to make sure that all the equipment is being cared for and serviced and maintenance so that we can't avoid those overturns and potential perils that could essentially attack our policy all right next class would be queries and strip lines so this is basically an open excavation site used to obtain building stones slate or limestone it's essentially just extraction of the earth's resources so there is a ton of very expensive equipment on these sites the power shovel which we'll see on the next slide I believe and then the drag lines are two massive pieces of equipment that that you definitely want to have a good handle on if you're underwriting this class so this is the drag line I think recently I wrote one of these and this piece of equipment alone was valued around nine million dollars so lots of exposure there you want to make sure that along with the trained crew you want to make sure that they have a maintenance program in place and someone that specializes in working with this type of equipment and making sure that they're keeping it up to date as up-to-date as possible just to avoid you know fires or or anything like that so definitely important this is a power shovel I think this one was about not this one specifically but one that I had was valued around 12 million so if you can imagine you know if you get a fire going there it doesn't take much to completely lose this massive piece of equipment and if that's the case you know you're gonna have some explaining to do as to you know why you're paying out a 12 million dollar loss on such a massive piece of equipment so management is definitely key when you're working with these large companies that have these these type of this type of equipment yeah what a incredible picture I mean if you really ponder on that experience as Casey alluded to of operators you want to make sure these people know what they're doing good business reputation you if you ensure or your carrier your company ensures this type of business enough you'll know who are the best in class versus some of maybe the more tougher risk to kind of take on and if you don't these are great questions to ask your agents hopefully they're specialists in the industry and can provide you some insight but always probing into management characteristics and again we'll touch upon that a little bit further in the presentation but as you can see you know that's a very very very large piece of equipment I mean this is a pickup truck right here guys so just to give you some sense of scale so also with this class to Jason's point earlier it's going to be usually on very rough terrain and near water so that's additional exposure you want to make sure that they know what those ground conditions are like before they place that piece of equipment there and you know just have a good understanding of the land itself before they start start the day so this is a dump truck you know pretty self-explanatory here just used at the site to transport the materials from one point to the next all right still erectors so this is another one that I think Jason really enjoys thinks about on this time off so this one has I think we see this a lot too on the day in and day out you know riding by there the they install these that you see or buildings stadiums bridges and tunnels and things of that nature so a lot of what they deal with is different types of cranes so cranes is common across all of these classes we'll look we'll take a deeper dive into each one but for this one in particular we have the mobile crane the crawler crane the hydraulic crane and then they'll have generators on sites and compressors and welders for to get the metalwork completed so I think with cranes it's always going to be boom collapse is going to be a huge one and of course overturn transit is a big one because you think about getting this equipment to and from the job site you run the risk of accidents hidden bridges things of that nature so you just want to make sure that you have a good understanding with regards to what controls they have in place for their drivers when it comes to transporting this type of equipment fantastic yep and actually one of the things I was going to highlight on the steel erecting crane side and as well as some of the excavation work that we just saw on the previous slides is the required for a third-party certificate a lot of times these heavy pieces of equipment are required to be inspected by a third party annually and so depending on the type of risk that you have be on the lookout for those sorts of inspections which are going to be key they're also interesting some of these inspections could be upwards of a 200 point inspection on some of this piece of contractors equipment and what it'll allow you to do is really look at the inspection and get an idea of the condition of the equipment what is it missing right and what does it need these are all things that are going to be really important obviously keeping the functionality of the equipment going into the next year and your policy term ultimately so a good point there Steven appreciate you tapping in and one thing I just want to bring up real quick as we go over some of these key exposures is that you know one real-life situation I've been seeing for those of you who are in the southeast and I think it even this made national news is that I know here in Atlanta they're building that cop city and I actually saw some pieces of contractors equipment that looks like those some of the vandals or we're looking to light on fire guys and so these are all just things that you want to keep in keep in mind geographically on kind of what's going on where you guys are placing a risk so when you see those perils of fire and theft and overturn we want to make sure that we're just conscious of where we're putting up our limits and where stuff is consistently so so this is just one type of train crane that we'll see mobile one it's just on wheels it's a hydraulic crane this is one of Jason's specialties so I'm sure do you have anything you would like to add with regards to this one well just notice a lot of times you'll see these guys driving around the road right so I want you to know that the highway exposure or just getting to the job site exposure is oftentimes as relevant as when they actually set up to get to work and you'll also notice within these taxi cranes which they can be referred to as well that they'll oftentimes have a truck tractor that may be following them with some counterweights depending on the type of work that they're looking to do which is actually almost better because it's going to give them somewhat of an escort and they generally operate at low speeds but recognize that you do have an over-the-road exposure organically just because these guys can't drive up and down the street versus if I can get back mom there we go there we go versus our crawler crane there we go okay I was and I'll kind of lead case you could jump in but the taxi crane as described is kind of built for over-the-road so these guys can kind of get the jobs within the city whereas your crawler crane is set up within this specific slide is built on tracks and it's going to actually need an assortment of truck tractors that will haul pieces of this equipment to the actual site and it'll get built and erected at the at the job site and those crawlers are really there for more tougher terrain and for larger lifts in this case you can see the windmills that these guys are lifting here that are going to be a little bit more critical as far as the work yeah anything to add on that Casey um no I think you handle it we talk about cranes quite a bit there's definitely some more photos I just wanted to break it up a little bit so we'll come into these are examples of two mobile cranes so and this is just your generator you have eyes our visual of what that looks like yeah obviously they'll provide power to the job site depending on where you're at and they can definitely be picked up on your schedule normally not as of high value but recognize that they're certainly present on pretty much any construction related contractors equipment schedule so and here's an example of a welder which just kind of helps bond that metal together at the still erection site so a very popular piece of equipment and to Jason's point not a ton of value as far as a dollar value but you'll definitely see these scattered throughout the schedule so next class is bridges and elevated road construction types of equipment you'll see here is a pile driver which will show that in just a second telescopic boom and articulating boom barges cranes and compressors with this class of business the majority of the exposure is going to be waterborne because when you think about a bridge it's usually going over water so you definitely want to make sure that you look into your underwriting considerations along with you know the operator experience you want to make sure that they're doing the barge surveys to make sure that the barge that they're using can support the weight of whatever the piece of equipment is because it will end up at the bottom you know of a bay or something if not so that's a key piece of underwriting that needs to go into when you're looking at this class yeah very neat when it comes to bridge and elevated road construction you know one of the more fascinating classes are within this segmentation is the the waterborne exposures for your guys that are building bridges and actually putting heavy equipment on barges in order to perform work one of the things you guys want to make sure of is that as you know is your contractor you make a use of a barge when it comes to bridge construction recognizing that when it comes to waterborne work a lot of that exposure is going to be a result in a total loss in the event of an accident depending on how deep the water is going to be so definitely something like to keep in mind and it looks like Jill actually had another question here Casey when a crawler crane is being assembled on-site will will an installation floater be needed to place on the policy I think that's a really good question yeah I wouldn't think so because the installation floater is going to cover the property that's actually going into the build or going into the building that's going to remain there permanently this would stay under or the crane would stay under the the contractors equipment which is going to cover the owned equipment the equipment owned by the insured yeah and oftentimes Jill you'll see the contractors equipment that's being pieced together is done by the parties that own the equipment and they normally bring a lot of expertise to the table very rarely would you see somebody own a crawler crane of any size that would have to be assembled by a third party and so ultimately your contractors equipment policy will be set up to respond for those types of exposures including assembly and dismantle related to crawler crane specifically I think when we get into other segmentations of contractors equipment that answer may vary a bit there's a pile driver so this is used to build piers bridges and other pole supported structures so somewhat popular you know down in South Florida you might see these quite a bit or our places where there are a ton of lakes and you know bridges are needed so the high-value piece of equipment there and there's a good point that someone typed here I can't see it all I'm sorry but it says the larger the piece of mobile equipment the more fuel it carries the more engine and hydraulic oil it carries which that's a great point so just to keep that in mind as well so this is a telescopic boom it's going to be primarily used to hold people or supplies in place for an extended amount of time the telescopic boom is it just kind of operates in a straight line as you see there the next slide is the articulating boom which serves the same purpose as far as holding people or supplies in place but this one's just a bit more agile it can get to some of the harder-to-reach areas of the construction site where you need a person or supplies to just kind of stand and here's an example of a barge that has a crane then to Jason's point just something to consider if you're looking at this class of business your waterborne exposures your experience of the operators you know generally when work is performed from a barge it's going to obviously restrict the amount of weight that that the operator is able to lift so all things to really be sensitive to when underwriting the risk you know when it comes to a lot of construction work in general or even port work you know it tends to happen in coastal areas I think we as humans love the coast we love the water and so you'll see a lot of exposure in Florida around the coast Louisiana Alabama all the way up throughout New York and around so just something to be cognizant of guys foundation contractors so this exposure is very similar I would think to a concrete contractor they're one of the first you know acts after the excavator they're usually you know second on on scene as far as buildings go so the the contractors equipment is pretty much the same you'll have your drilling rigs your excavators and your compressors the same key exposures with upset and overturned fire and the underground exposure that we discussed earlier on this slide also you do have the opportunity to exclude downhole coverage you know for operation like this it may not sell but you know it may if you if you notice some lost trends or something it may be an opportunity to give yourself a more comfort a better comfort level with the exposure you can also create a sublimit for that type of exposure if you say hey you know you've got a schedule for 10 million but I only want to provide a million dollars worth of downhole coverage you do have that option as well to Jason's point we have a lot of flexibility with our products so we just want to make sure we're utilizing that flexibility to make sure that we're doing the best that we can for our companies and our insurers at the same time now this is an example of a drilling rig Sorry about that, Casey. I think it's going to jump back here in one second. There we go. The auger truck. I was trying to find a better example, but this truck actually has what's called a boom as well. As you can see, it's got that drill bit that's spiraled. You may have seen these around, but that's spiral drill bit can dig into the ground and get pretty deep there. This is something that we would also cover traditionally on the Inland Marine Policy. This is another example of a hydraulic excavator and an air compressor. Another one that's not a ton of value by itself, but it's definitely something that you could expect to see and probably multiple at any given job site. Tunnel boring. This class is very unique in a sense I don't think I've ever underwrote this class. I don't know if you have, Jason. But yeah, definitely a unique class. There's a handful of companies that do it and do it well. I think Elon Musk was actually trying to create a company that he was calling the boring company, that was only going to be tunnels for his vehicles. Just very interesting. This class of business, like I said, it's not a ton of activity in the US that I've found. But if you come across them, they're probably going to be best in class as far as management goes, because there's definitely a skill set that's involved. These are massive projects. You think about creating a tunnel wide enough and strong enough for vehicles to travel through. There's a lot of expertise that goes into doing something like that. Yeah. One thing to really highlight with these sorts of projects is just the aggregation of values. You won't have a boring machine present at a job site without a host of other additional pieces of contractor's equipment. You can imagine depending on the type of work and what's being done, the contractor or the insurer that any of our companies may be serving. Ultimately, you could run into where you could maybe have 10 to 12 to 15 to $30 million of contractor's equipment at one site. If you do happen to come across a situation like this, and you have the opportunity to ask what's going on with the project, learn as much about the project as what's going on as you can, and just be cognizant that you can have cranes, you can have forklifts, you can have all sorts of autos. If we're doing auto physical damage under an inland form, you could have quite a bit of exposure there. Not to mention when we're talking about digging into the ground organically, you're going to have a flood or a collapse issue just organically related to this exposure. Something that's very unique to the inland marine space and the key exposures, as well as underwriting considerations, are definitely things you want to take into account when underwriting the equipment segmentation of the risk. There we go. Here's an example of a massive tunnel boring machine. Casey, if you want to jump in. Yeah, so this is going to cut through everything basically, hard rock, dry soil, you name it, it's just going to plow through that. So like I was saying, a lot of expertise involved with handling this type of machine and the maintenance on this as well is something that, you know, what does that look like from a management standpoint? Do they have a technician on staff or are they using a third party? Which is fine, that's fine as well, but we just want to make sure that they're keeping this equipment up to date and they've got their eyes on it and making sure that it's functioning properly. Yeah, there's three different types of tunnel construction. This is obviously one of the larger ones, but you have your kind of cut and cover tunnel work which can be more in a shallow area and then it may be covered over. You'll have your board tunnel construction and that'll be done without really impacting the ground above the boring machine. And then you'll have your conveyance or traffic tunnels that we're kind of used to experiencing from a over the road standpoint. So those are kind of your three types of tunneling jobs that you can do and they all take some pretty neat engineering and again, a lot of expertise when it comes to the actual execution of the work as well as the equipment. And whenever you are both ready for a break, just announce the break and I will put up a slide saying we're on break. Yeah, I think after this next one, it'll be a good time to take a break and this one is just going to be the next slide will be the cutter head of that piece of equipment that we just saw. So it's usually transported in different sections. So you've got the transit exposure and then once it's there, it's assembled and this is just kind of what that piece looks like on its own. Okay, Eileen, did you do we want to take a break here? I could put up that will take a 10 minute break. Does that make sense? Take a 10 minute break. All right. Okay, I think you're good to go. I think you still have control of the slides, doing a great job. If there's anything we can do to help, just let us know. Yeah, for sure. Thanks, Eileen. Hope everybody got a chance to stretch their legs a little bit. We got a lot of material to cover, really excited to as well. And it looked like, I'm looking in the question box here, Casey, there's a couple of people that joined us late. So, we'll just start from the beginning, if that works for you. Can we just start over from module one? I'm kidding. I'm sure this will be recorded somewhere. Yeah, absolutely. As soon as you leave. You can confirm that we are recording here, right? Yes, we are. We're recording. Fantastic, Lillian. Thank you. Okay. All right. Do you want to take this one, or should I, Casey? Well, you can take it. I think similar to some of the slides, you know, if they coincide. So, we also have the crane rental operator listed, too. So, you know, you can have your pick. I know this is your bread and butter. So, take it away. Oh, that's fine. Well, one of the things I want to make sure that we distinguish, too, is that rigging contractors. And actually, what I'm going to do here is go back to a couple of slides before. So, this one, very, very interesting slide that we have here. As Casey alluded to, this is the cutterhead of a tunnel boring machine. But if you recognize that it's actually strapped to a crane and is being hoisted up and rigged. So, what I really want you guys to be cognizant of is that there are specific contractors that will handle rigging exposures only. May not necessarily be your crane operating company, but it could be some guys that are just hired to do essentially what is the rigging, which will be kind of strapping the item to the crane, in this case. And so, that's kind of what we're touching upon here in this slide. So, oftentimes, with rigging contractors, you may have a crane. Sometimes, these riggers will be with the crane operator. Sometimes, they'll just be rigging companies themselves. You'll also see an assortment of jacks and hydraulic lifts. And then, and even some specialty trailers, just depending on if they're moving any of these items that are going to be rigged. In this case, a tunnel boring machine. You know, our insurance could ultimately be responsible for moving those loads to and from the job site. So, all things to consider when we talk about mill right and contracting companies. For the ones that do own cranes, again, your key exposure is going to be boom, collapse. You know, God forbid that crane that was lifting that tunnel boring head isn't strong enough or has the capability from a load standpoint to uphold the piece of equipment that it's lifting, make it collapse. And then, obviously, collision, whether you have cranes maybe bumping into each other at a job site, one falling over into another from a large piece of equipment standpoint, or even just collision over the road, it's all there to be had, seen it all. Regarding the underwriting considerations, just like we talked about in so many other segmentations of this breakout here, operator experience is key, especially when it comes to your crane operators and even your rigging contractors. You know, one of the things that I've seen more than four times, if not five, if not six, is where you'll have the operator that's assigned to a specific piece of heavy machinery call off for the day. He gets sick. He gets COVID. Kids are sick. Whatever it is, we're all human. We have things that happen to us, but instead of delaying the project or putting a pause on the project for the afternoon, general contractor or whoever's in charge of the project will just throw somebody else in the seat. Hey, you've operated a crane before. Can you jump in and finish up this project that employee X was unable to do because he had to call off the day? I've seen that result in a covered loss more than enough times to know that it's a legitimate exposure. So one of the things to make sure that if you guys have the opportunity to engage your brokers or retail agents in that level of conversation, what happens if the guy doesn't show up? You know, is there a contingency plan? Is there enough qualified operators on staff in order to make sure that the items are lifted and executed, the load charts are paid attention to, that they even know how to handle this specific crane or piece of heavy machinery, as well as the primary operator. All things that are very, very important, because ultimately it could impact your book from a loss ratio standpoint should an accident happen. So just some things to consider. Do you want to add anything to that, Casey? You good? Yeah, I think that's fine. For mill writing, I know it just might be important to distinguish exactly what that is. That's a company that services, installs, or dismantles equipment. So we see that term quite a bit in our industry. So just to give you some clarity around what that is. Yeah, that's a really good point. I think mill write is a very generic term, to your point, for a lot of different classes. Ultimately, a lot of it could just be critical moves, you know, plant relocation, picking up items, specialty items, putting them on a trailer, relocating them. That could actually be job site-specific, depending on where they're at. They could be at a power plant facility. A mill write company could move a piece of equipment from one site of the yard to another. Or it could be as extensive as moving from one state to another, just depending if the whole plant is relocating to a new facility in Texas from New Mexico, as a random example. So all types of contractors that, insureds, that could ultimately create exposure for our book on contractor's equipment. Really good point there, Casey. Here's an example of a hydraulic lift. These could be used by, again, more of your mill write type of insureds, especially for the ones, again, that are doing kind of plant work. Obviously, these items can be used to kind of raise and hoist some pretty large pieces of machinery, or even support beams, kind of depending on the needs of the job. Here's an interesting class of business that I'm sure some of the people on the call may specialize in through their carriers, but logging contractors. Logging contractors, yes. So definitely a niche market. A lot of your major carriers tend to shy away from this class just given the increased fire exposure, and if you think about it, most of these project sites are going to be in very rural areas, you know, we're talking protection class 9 and 10, and a lot of times they won't be protected by a local fire company. So lots of exposure there. There are some things that they can do to sort of decrease the fire risk, and so you're really going to be looking for best-in-class operations if you do decide to entertain this type of risk. So the fire prevention plan, which we'll get into, there's some things that they can do. Like I said, a lot of this equipment will have fire extinguishers actually attached to the equipment, they need to make sure that their employees are trained in how to utilize the fire extinguishers, right, because it's no good if you don't know how to use it, and then a lot of times at the actual site, and I think we have a picture of this coming up, they'll have water trucks. So they're kind of bringing their own water to the site to prevent fire, you know, when the fire starts, they can kind of douse it and get rid of it right away. So definitely some things that they could do, you know, maintenance is always important, and the operator experience is just, I mean, that's just imperative for all of these classes that we're looking at. Yeah, all really good points, and you know, you had brought up the protection classes, you know, where are these people operating? Oftentimes you're dealing with volunteer fire departments in situations like that, and if a fire were to start, you know, how soon is somebody going to get there, or are you going to just be dealing with a total loss? So all really good, good points there. So a skidder, this is used for pulling and cutting trees in the forest, so, you know, probably not a ton of value there, but definitely something that could catch fire and light things in the immediate area on fire as well. So definitely want to make sure that you have the maintenance. And then with this class also, like I said, a lot of the heavy hitters or a lot of the larger carriers will kind of shy away from it. So this could actually give you some clues if you're looking at an equipment schedule, like to my point earlier, and you want to make sure that you, you know, have a good understanding of what exactly they're doing, you know, and they're not listing it out, hey, we're doing logging, but you can look at their equipment schedule and see this type of equipment and be able to make that determination yourself. Yeah, and we actually got another blip here, Casey, from Steven. I think one of the things he just highlighted, which is also important, and again, you're seeing this theme pretty consistently in all of the slides, is just the maintenance, right? Making sure that these units, which are used in some pretty rough areas, with this skidder that we're looking on at the slide here, it's going to be obviously in some very remote, rough areas. How well is this equipment being taken care of? Making sure that all of the lubricants are up to date and, you know, that a fire doesn't break out due to maybe some faulty wiring or, again, leaks because equipment has been so weather exposed over time that it will ultimately end up in a covered peril, like a fire, just due to something sparking. All things that you really want to monitor from an underwriting standpoint, again, guys, are how are they taking care of their equipment? What is their service plan? How often are these pieces of items returned to the yard for work? Are all really good points there. Next is a yarder. So I will say that this piece of equipment, unlike a lot of the pieces that we've seen, would be exclusive to this industry. This is a, there's cable wiring. I don't know if you can see it in the picture, but that's used to actually pull logs. It's generally going to be pulling them up a hill. So this is definitely exclusive to logging. So if you see this on the schedule, you know, no matter what they say, that they're doing some logging operations there. You know, pretty substantial value, a piece of equipment. And to our points earlier, it's going to be in a rural area. So fire is going to be just something that it just needs to stay on the forefront of your mind when you're underwriting this type of risk. A feller buncher. So this actually collects logs once they've been cut and just kind of moves them to a gathering spot, if you will. I thought this was a pretty interesting name. So a feller is traditionally a name for someone who cuts down trees. And a buncher is the skidding and assembly of two or more trees. So that's kind of where that name came from, a feller buncher with a long name. Yeah, and again, guys, note the tracks that are on this piece of equipment here. Obviously, you can see we're on an uneven surface, susceptible to rollover. Obviously, damage to the boom here is something that is highly likely in the event of a rollover when we're dealing with terrain like this. So again, really understanding the different types of pieces of equipment we're insuring and where they're at is going to be key to you guys making effective underwriting decisions for your company. Here we have the water truck. It's encouraging to see these on any schedule, honestly. You're carrying around your own water just to make sure that you're avoiding fire. So definitely important with the logging class. Like we keep saying, they're in remote areas. So just having that equipment on hand nearby is just a great idea. And I also see a good point brought up here by Holly Dangerfield that when these pieces of equipment that are operating within the logging space are finished functioning for the day, they're required to sit upwards of one hour just to cool off from that standpoint. We're dealing with a lot of wood. These engines run hot. Every bit of risk mitigation from a fire standpoint should be implemented. So it's a really good point there. And then also, Steven chimed in that water trucks could also be used for dust control. We're talking about scenarios where you can be in some pretty remote areas and a lot of dirt and a lot of debris. Maybe the water can kind of help mitigate that a bit. So that's a really good point as well. OK. Another piece of equipment, the knuckle boom loader. So the house that the operator is sitting in, it actually rotates. So he's going straight from picking up those logs to putting them on the back of the trailer. So lots of exposure there. And again, just want to make sure that equipment is up to date. And then the skid steer loader, front end loader. We see these around. Definitely not exclusive to the logging industry. Just used to kind of move dirt and debris or whatever, what have you, around transported to different areas. Right. Yeah, it looks like, yeah, these are definitely high theft items as well. They can be taken pretty easily. You can imagine loaded on a flatbed and just kind of hauled away. So again, security measures in place are always going to be important. Metal recycling, so this is another tougher class of business due to the fire exposure. Again, when you see shredders or balers on the schedule, your ears should perk up. There's probably going to be some recycling exposure there. And you just have to figure out how comfortable you are with that. The underwriting considerations, again, would be the fire extinguishing equipment, preventive maintenance programs, as far as keeping the equipment up to date and clean. And then the clearing of combustible debris around the location. So the housekeeping is very important with this type of risk, making sure that outways are clean and everything is where it needs to be to avoid the combustible exposure there. It's almost when you look at the shredders or the balers, you can almost underwrite that more like a real and personal property exposure because they don't move. And so you're going to be dealing with a lot of location-specific exposure. Even when it comes to the loaders and even some of maybe the cranes or other bulldozers, excavators that could be at a site, uneven terrain, obviously if a large fire were to break out at one of these facilities, you could have an aggregation of values consideration there. So definitely a tough class. Fire is going to be your primary exposure there. So do they have fire extinguishing equipment? Very fundamental solutions to some of the exposures that this class presents. So all things to be on the lookout for. And just to give you a visual, here is your metal shredder. Sorry about that. Yeah, and really what we're doing with these metal shredders is we're taking large pieces of metal and making them a lot smaller. It's the simplest way to put it to you guys. So you can have engines behind these things upwards of 10,000 horsepower. Really neat videos that are out there on the internet to kind of see stuff getting compacted and just how efficient these machines work. But ultimately, the takeaway is that you can find coverage for these under an inland marine policy, recognizing they are a separate piece of equipment from the actual building structure itself. Here's an example of a baler. These are primarily used at recycling facilities. But essentially, they're just going to condense a lot of waste or recyclables, in this example, into a way that they can be packaged up and delivered out and reused. So again, more of a fixed property exposure, because again, these pieces of equipment aren't going to be able to drive away like a taxi crane, as we saw in a previous slide. So here's your crane rental operation. These guys are going to often be at pretty much all of your construction sites in one form or another. Again, whether it be a taxi crane, a crawler crane, a tower crane, you see a variety of different types of cranes around all types of construction sites, from residential to commercial. And again, you're going to see a lot of construction sites from residential all the way up to your larger municipality, stadium builds, things of that nature. Some of the key exposures we've kind of talked about before is just going to be boom damage and collapse. You know, the boom, although it being a lot of steel, is probably the most critical part of the crane, is really what's going to afford the crane's lifting capability. And so that's something that we always want to be cognizant of, is making sure that the operator isn't necessarily trying to use this crane to lift something it has no business lifting or it's not capable of lifting. One of the things you always want to look for when it comes to crane is rental agreements. Oftentimes, your insured may lease the crane from somebody else, right? If you're the insurance carrier that's providing the bear, meaning no operator, you're just providing coverage for the crane, is there enough insurance in place from whoever's leasing the equipment from your insured? You know, we talked about operator experience, and then obviously the maintenance of the equipment. I can recall a specific crane loss where they were using the wrong lubricant and it caused the crane to buckle and collapse. So, again, is the right maintenance in place? What are the experience of the maintenance people? You know, these are all things that you should be able to vet through an application and discussion with your retail or broker agents. And then also critical lift plans. You know, are these objects that are of normal weight and type as we'll find at a construction site, or are we looking for something that's a little bit more expensive as we'll find at a construction site, or are we lifting a submarine, right? That'll take a little bit more expertise and a little bit more thought into the risk. You know, these are all things that you want to make sure that you're underwriting to when you're reviewing the exposure. And here's an example of a tower crane. So, this is one that would be installed at the job site and dismantled upon completion. So, very popular piece of equipment. They can easily run into the millions as far as value go. And to Jason's point, you want to make sure that your operators are NCCL certified. And if they do have the bare rental exposure that they contract wording, just kind of that you're comfortable with the contract wording. I think so many times we're in a rush and we're in our zone and, you know, you look up and you don't even have a copy of the contract. But if you're underwriting cranes, you know, the contract should be a primary key piece of information that you look for with regards to this type of equipment. Yeah, for sure. From a risk transfer standpoint, who's going to ultimately be responsible if this item goes down? And again, you know, a lot of it depends on whether it's bare rental, meaning it's rented out with no operator or is it a with operator situation and you'll have somebody experienced operating the crane. It all matters. And, you know, in addition, when you look at a tower crane that's erect in this manner, it's actually a pretty safe bet that everything is going to flow okay. However, the most hazardous times for tower crane exposures are going to be on the erection and the dismantle. If you think about the whole concept or premise of a tower crane, you need cranes to lift and erect tower cranes. And so you'll have an assortment of different taxi cranes that will be involved in erecting the crane as well as the dismantling of a tower crane, which are probably the most hazardous parts of the work. And so recognizing is your insured responsible for that? Or are they hiring out or subcontracting out the erection and dismantling piece to a third party? All things that you want to be cognizant of in order to best protect your risk here. A lattice boom, this is a truck crane. So I think the lattice boom, it's worth noting that it gets this name. It's just from the W or V-shaped bars that make up the boom. So this provides, it decreases the total weight of the boom and allows for maximum strength as far as lifting goes. So when you see those, that's a lattice boom, somewhat newer technology, I would say. Yeah, for sure. And if you'll notice on this one, you have the outriggers as well as the counterweights. And these guys have general wheels. So this crane can drive up and down the road when dismantled versus our crawler crane, which has the similar boom features as the previous slide, except these guys are on track. So they can get to kind of more remote, more difficult to navigate areas. Here's an example of a rough terrain crane. Again, just kind of depending on the site, the job site, and kind of what the work at hand calls for, you may see a rough terrain crane used. Oops. Let me go back here. And again, crane stability, just your outriggers, guys, really important feature of a crane. And even being cognizant when these things are extended, you know, I've seen situations where people get hurt around the job site. I know we're talking first party in the marine coverages here, but just a whole lot of exposure. I think by the end of the year, we're going to see a lot of exposure. I think it's not uncommon to know that construction is just inherently dangerous work. If you're up in the Northeast, I know Lillian and Eileen are up in New York. They'll often see these types of cranes on some of the skyscrapers in New York as work is performed. They can only build up in New York, so if you're under riding risk, you may see some of these sorts of towers that are essentially attached to the building. You got two types of climbing cranes. You got an external climbing crane, and then you actually have an internal climbing crane, which will give you access up through the boom for the operator to go sit in the seat. And then if you've ever been in to any of the ports, Savannah or Houston, or wherever you may sit geographically, Washington, L.A., you'll see pretty large gantry cranes at a site that are often used to move intermodal trailers to and from ships. I can't tell you how many times I've seen that happen. I can say for sure you definitely have a lot of exposure from an aggregation of value standpoint just given the fixed nature of these gantry cranes at a port and almost need to underwrite this like a real and personal property risk. Sandal lifts, I think it was worth noting. We see this term around quite a bit. So this is using two cranes with two operators to lift a piece of equipment or building supplies. And the key with this is that it's not just lifting a piece of equipment or building supplies. It's lifting a piece of equipment or building supplies. And the key with this is the operators need to be in sync and coordinating. It's actually a very special skill set to be able to do this or complete this type of lift. So lots of exposure there with dropping and bringing exposure there. So just want to make sure that if they're doing that, you know how experienced those operators are with this type of lifting. Very fair for you guys to ask about tandem lift exposure. You know, in this case, it looks like we have two cranes of similar nature. But what if these are two different crane companies at the site, two different operators working for two different companies, right? Who's in control of the project? What is being lifted? Who's doing the rigging here, right? All of these things are very important. These are very hazardous lifts and can present a lot of exposure to your portfolio or to your books. So these are questions that you guys should be asking pretty regularly. OK, so we got a question here. And feel free to throw it in the chat, guys. What type of equipment do you and your company use? Throw it in the chat, guys. What type of equipment do you and your company avoid insuring and why? As much as you guys feel comfortable, throw it in. Just curious for a bit of conversation here. We'll give you guys a few seconds. And while you fill that out, I think Holly wanted to contribute operator certs for sure. So when you're underwriting these cranes, make sure that the operators are NCCO certified or NCCCO certified is imperative. Yeah, I'm seeing a couple of comments in here. Yeah, recycling and logging for sure. Yeah, tandem lifts. Again, back to that very, very tough, tough business. Forestry, crushing, recycling, recycling. Yeah, these are all very tough. But with that said, and I would not be blown away at all to know that there's probably some specialists or specialist carriers that are on this call that have probably established a way to provide insurance within this segment. That's what's really neat about the IMUA is that everybody's bringing expertise in all a variety of different classes. And so and I know for sure some of the logging programs that do exist. I mean, there are people out here that are able through their niche expertise to make money in these sorts of segments. So all really good answers here. I do see fracking, which can be challenging in its own right. And so, yeah, all really good feedback, guys. Thank you. And another question for you. What is the most common consideration of the of the class of contractors equipment? We covered and I want to say common underwriting consideration. Because there was a theme if you kind of picked up on it, because we actually went through quite a bit of different types. So, again, feel free to throw it in the chat, guys. Maintenance, yeah, we're starting to get some answers in Casey. I think Jason wanted to have a little fun with this one. There's actually there's no no right answer here. All of them are equally as important. Fire, explosion, upset, overturn, taking care of the equipment, you know, regardless if you're doing cranes or recycling facilities or logging facilities, the underlying theme guys fire is our primary exposure. Theft, you know, you want to see locations fenced and locked up, just really a common sense approach to this. And again, as you guys are traveling throughout wherever you live at geographically, you know, look around, look at your construction companies, your more industrial type neighborhoods when you happen to drive through, look at the controls. These are what are to be expected. All of them matter because all of them put our books at risk at any one time. So just real quick, in the interest of time, we'll kind of breeze through this with just some other types of contractors equipment here. You got your all-terrain forklifts again with a lot of your millwright type exposures. You'll see this piece of equipment, which makes this one unique is that these lifts or these actual components here can be swiped out. So this can actually be used for a multitude of different things and makes it a really handy piece of equipment. We also have our scissor lift here, which you'll often see whether it could be at your grocery store, your gym, or at a construction site, just to give a contractor the ability to reach some high reaching areas. And then oftentimes you'll even see a tool or a storage box that may hold some key items at a job site. This will offer up the opportunity for things to be locked away. And then conversely, you also see them on your schedule as well. You may be asked to pick them up. Obviously there's a lot lower value here, but these are all things that may be common to a contractor's equipment schedule. So with that said, here's kind of just a random job site that we were able to find and point out some items. So just a random picture of your standard builder's risk job site, contractor's equipment exposure. So over here we got our lattice boom crane. We got a, which is probably, which, yeah, given the size of the boom, it's going to be a crawler crane. Here's your concrete pump, kind of help pouring concrete on the deck up here. You got your excavator, hydraulic excavator over here. It's like we got a backhoe and then a dump truck down here at the end. So again, all of these exposures, normally you have different contractors, subcontractors working at the job site that will bring exposure there. So these are all just very normal things that we'll see in our day to day. Here goes another job site. Looks like it's in an urban area. We got our excavator here. We got our telescopic forklift that's moving some objects. We got a generator that we described earlier in the presentation. We got a hydraulic excavator over here, as well as your bulldozer up here in the front. So really neat when you kind of take a step back and look at it from this alternative perspective. Right. So jumping into module three here, let's talk about some major underwriting issues. Right. As we just identified, what we're going to see is a lot of exposure for fire. That's going to be the major cause of loss within this class. Another one that's a very prevalent, especially as we just went through a really gnarly storm and the starting, well, the end of Q3 last year with Hurricane Ian, but a windstorm is definitely a hazard as well when it comes to exposures. If you guys are doing any sort of mining or road operations or quarry operations, I should say, those guys are using dynamite. So they're blowing up stuff, which inadvertently could affect your contractor's equipment, not only from a fire standpoint, but it could result in some ground collapse or some shifting that could put your equipment at peril. And so definitely be conscious of that. A lot of times our contractors that we insure within this segmentation of the book, they're going to lease yards in low rent districts, which are often near water, a swamp or a river. I know for sure one that's here in Atlanta that we've looked at in the past, they're up off a river town road. Right. Again, low rent industrial districts. Things to keep in mind if you're going to have an aggregation of exposure issue, something to consider. Transportation. Again, depending on the type of contractor's equipment risk that you may have, these guys are also going to own truck tractors as well as flatbeds and low buoys that'll haul equipment from site to site. So things to be cognizant of just from an exposure and peril standpoint. And obviously we had also talked about theft. I actually saw a scenario in my past where you had two neighboring construction companies, one neighbor, check this out, Casey, actually stole a piece of equipment from the other and tried to act as if it was his own. And so theft is common. It doesn't necessarily have to be a necessarily a criminal gang. In that particular case, it was just one neighboring company versus another that didn't have a great relationship. So all of it's on the table. I promise you, you do this long enough, you'll see it all. So another thing to consider while oftentimes we talked about a lot of yellow contractor's equipment is hail. We are subject to damage because of that. Obviously we talked about boom overload, boom collapse. That's always a problem. Again, if you only have a 40 ton crane and you're trying to lift a 60 ton object, it's going to result in a loss. I mean, just fundamentally it's going to happen. And then also we saw in some previous slides, some pictures of the barges. And essentially that's going to result in a total loss oftentimes, again, depending on how deep the water is that you're insured is operating in. Be cognizant of that waterborne limit that you're putting out. And if you are putting out a blanket limit and just making sure you're comfortable with what the insured is doing from an exposure standpoint. So Eileen, I think we have another poll question coming up. True or false? Flood and earthquake are common exclusions in contractor's equipment policies. Give you guys a second to respond here. All right, so we got a lot of trues here Casey lots of trues Now it's kind of a tricky question because I think a lot of the Carrier forms can vary by just who you're working for Again, we actually saw in the feedback earlier that it's all over the place Some of you guys are using a is forms. Some of you guys are using ISO Proprietary form. So with that said the AIS form is pretty much silent on the flood, but it can be specifically excluded But again, it's good to know your product and how Exactly your policy is going to respond to flood coverage It's something that's important to know And also keep in mind that there's going to be tools that are available to help you underwrite flood I think we're going to talk about in some future slides, but I'll address it now Just using risk meter or obviously Google Earth Has some features depending on the subscription that you have access to That'll also give you floodplains so that you guys can review the flood determinations for a particular risk Ideally, you know ultimately contractors equipment could be anywhere because it is mobile in nature But in a downturn, maybe there could be an aggregation of values at the insured yard So we always want to keep it keep tabs on that All right, so we talked about fire again being just a major major peril here Equipment stored in the open you don't want stuff stacked on top of each other right guys again, if something If a fire happens to start with one piece of equipment You don't want it to quickly be able to access the next four pieces of equipment because they're too close to each other you want enough space between each item to make sure that We can isolate any sort of fire event as much as possible Housekeeping items Definitely just want to make sure and we'll go into this in a little bit just about loss control if you have lost control Or able to go out and visit a site You can tell is the site clean are they taking care of things or is stuff just splattered all over the yard and You can tell that I'm not a lot of care or thought is even being put into the fact of a fire or something Breaking out at a potential yard can really differentiate an opportunity whether you want to insure it or not You know fires definitely or housekeeping is very very important Thing to exposure to underwrite for when looking And then just again fire suppression systems, which we talked about I Think we have a YouTube video here Eileen Give me one second. I will bring it up That's no bueno on that picture there, I think you guys can get an idea what's happening and came through and actually just blew the crane into the building. A really easy method to prevent loss that works most of the time, but I've seen it not work as well. In addition, when you look at- I think you were muted while it was playing. I'm not sure if you were speaking, but anyway, I think we're back now to put the video on. You were muted while the video was playing. I think you were explaining weather veining. Yeah, for sure. In that case, that tower crane was set up to spin exactly as it should. In the event of the storm, if you guys are riding risk down in Florida, approaching storm comes, these crane companies will actually dispatch their operators and they're all very used to this. They'll boom down as much as they can. They'll try to bring the tower crane down in size, but ultimately, they're going to let it weather vane. If a hurricane blows through, it should actually swivel just like that and ride the storm out that was demonstrated in that video. Really good example of how tower cranes should ride the storm out. I did give an example, I think when I was muted, where the tower crane, there was a loss down in Dallas, Texas where the tower crane actually had its parking break up, and a windstorm blew through, and the tower crane fell into the apartment building. It was a simple miss by the operator before they finished up for the day, and it actually resulted in a pretty sizable loss. Those losses don't happen often, but they definitely can happen. But that video was an example of how it should work. Ultimately, just being cognizant guys of where your risk is at. As I mentioned earlier, a lot of these construction projects are taking place in coastal areas. If you're in Florida, or Texas, or Louisiana, or even upwards of New York, we saw Sandy blow through New York a few years back. Disaster mitigation plans, we want to make sure that these contractors have a plan in place for when these storms come. The weather technology is through the roof nowadays. We know well in advance when these hurricanes are coming. What are these insurance having in place to mitigate the loss up front is really what we're looking for. You may have to help us get control back. There we go. Did the slide go? I know every time we play a video, it gets a little lonky. Yeah. Jason, you want me to move the slide for now? I think maybe it'll kick in. Yeah, can you scroll up to 89 real quick? Pardon? Slide 89. Oh, 90. I think we skipped. Oh, that one. Okay. Yeah, we did. There we go. Okay. So again, guys, we talked about theft and vandalism. You know, I gave the example, and I saw somebody get some feedback about the, and I use air quotes cop city that was, that's being built here in Atlanta. That's kind of the sensationalized name that the news has given it, but really what it has attracted is a whole lot of potential vandals and people that are buzzing around a construction site because they do not want this police facility to be built. And again, they, I saw them on the news messing with some of the contractor's equipment. And so again, these are exposures that we all need to be conscious of. You know, we've seen guys climb tower cranes, right? In order to gain attention for whatever political cause they may have going on in the moment. Again, job site security, very fundamental risk mitigation things we're looking to be in place again with the cranes or tower cranes, or even some of the bulldozers or excavators that you'll just see left at a job site. Attractive nuisance, right? Talk about young kids, you know, you're 14, 15 years old. You got access to go run up on a bulldozer. You might try it. I think Casey, you gave the example of, so I left the keys in one, even better. Now I can take it up the street. What could go wrong? Right? All things fundamentally, guys, we just want to make sure we're keeping tabs on as we underwrite risk on a day-to-day basis. We can go on a 90, if I can't control it anymore. All right, yeah. Earthquake and flood, again, you know, guys, if you're operating out West, New Madrid, kind of in the central US, recognize earthquake is definitely an exposure that we have to live with. Mudslides, subsidence, which is where the ground is sinking, all exposures that we need to be conscious of. Flood, again, with a lot of contractors' equipment, it's mobile by nature, so we could inadvertently end up in a flood zone that you didn't really realize was there, but things you want to be conscious of, a lot of times you can underwrite to where the physical property or the real and personal property location, the terminal locations of our insureds, obviously any sort of wastewater treatment, if you happen to be involved in that segmentation of the industry, you know, inherently, you're going to be around water, and so something that you want to be conscious of. Again, Google Earth has a really neat floodplain elevation package that you can purchase, depending on your carrier, as well as Risk Meter, all these sorts of programs that really help you underwrite and document your file so that you can kind of make some strategic decisions. And then also, mining operations, as well. You know, with mining, you're inadvertently kind of changing the land around you, so you may have been what was not a floodplain into what is a floodplain, just by the amendments that are happening on the Earth. So again, all things to be conscious of. We can go to the next slide. Upset and overturn. Hey, you guys, we talked about ground conditions. It doesn't take much to really picture one of our pieces of contractor's equipment overturning. Again, a lot of it has to do with the experience of the operator. Pre-employment screenings, you know, one of the things I like to ask, my insureds, or when we're out soliciting some new businesses, where are you finding people? You know, it could be Indeed. It could be from the local trade school, right? It could be from the military. It could be from people that are, you know, from different or mirroring segmentations of the industry. Where are they finding people? And how are you qualifying your operators? It's something that we always want to make sure that we're cognizant of. Driver selection, you know, guys, don't minimize the amount of exposure for over the road. We see accidents on the highway all day, every day. God forbid, if it's your $750,000 crane that's attached to a lowboy trailer that ends up in an overturned accident, it's all, it's all on the table. We can go to the next slide. Again, location exposure. When you're looking at your COPE information, oftentimes, there is going to be a real and personal property element. Some of you guys may be underwriting the real and personal property piece along with the yard exposure, but this picture right here offers up exactly what I've been trying to describe a bit earlier. It's just aggregation of values. And I think even in the far distance on the left here, you could see some water, a waterway, right? So, the real thing is more than likely this thing is in some sort of floodplain. And so, in the event of some severe weather, what is the insurer doing to kind of mitigate this exposure? I mean, how often is this yard that populated is one thing that you can probe for. And in the event that something is going to happen, is there a higher section of the land that they can move a lot of that equipment to? Again, these items are even parked really close to each other. So, we had even talked about maybe if a fire were to break out at one of these units, you can easily see how four or five or six could also be damaged. So, all things that you just want to probe for, again, it's hard to read off an application or an Excel spreadsheet, but in your dialogue with your retail agent, make sure that you're having these sorts of discussions so that you can get a picture in your mind about what the risk is going to be. I know that we'll talk about PML or probable maximum loss in another slide in a few, but this is another perfect example of, man, that's a lot of exposure to have at one location. We can go to the next slide. Waterborne exposures. We talked about this a bit earlier. Again, one of the things that you want to ask for fundamentally is for a whole survey, right? If you guys remember the picture that we showed earlier with the crane on the barge, what is the seaworthiness of the barge? There are surveys that exist that the insured has or that they can obtain from the haul from the shipping company. If it's a barge that you're insured does not own, that you can get a copy of that will verify the seaworthiness of the boat or the barge. You can also get a copy or request a copy of a load and stow report. Those are going to pertain to what else is going to be on said document. You may have a piece of equipment that's going from the Port of Savannah over to the Dominican Republic. Haul survey, copy of a load and stow report, depending on your specific carrier, what are your territory restrictions? Are you going to be expected in the event of a loss to be primary or contingent from a coverage standpoint? All things that are very key depending on the type of waterborne exposures that you have. I've actually insured a couple of companies that exclusively have done waterborne work, you know, which is actually a better thing because, you know, they're bringing a certain level of expertise whereas you maybe have a guy that had a chance to bid on a job, he goes and rents a boat or a barge from another company and now he just threw an operator who has no waterborne experience when it comes to lifting items with a crane and could really put your policy in peril. So all the things to keep in mind as you're underwriting waterborne exposures. Right. So, Kasey, I'll turn it over to you for our forms and coverages here. Okay. So we'll kind of breeze through this module because, like we've said, the forms and the coverages vary so much by the carrier. I know, you know, I've worked with AIS and proprietary forms, and it really just kind of runs the gamut. And, you know, that's one of the great things about what we do is we can kind of tailor the form to meet the insurer's needs. So let's see. So forms vary by insurer. Oh, yes. So coverage. So there are 11 core components that each policy should have, and they're all listed here. I'm not going to read them to you. But between these 11 components, they should do four things. They should identify who is the insured and the location. It will define the risk transferred from the insured to the insurer. It provides limits and conditions of insurance, and it stipulates a procedure for handling the payment of claims. So that's all done with these 11 core components that are listed here. The next one, we have a poll question. All contractor, true or false, all contractor equipment policies issued by all IMUA member companies provide the same coverage. We're taking it easy on you because we're getting pretty late in the afternoon. So let's see what we come up with. There we go. Perfect. You guys are still awake. Good. Yes, absolutely. So, you know, coverage varies by company, form, et cetera. Okay. Covered property generally includes contractor's equipment that the insured owns or similar property of others that's in the insured's care, custody, and control. Care, custody, and control piece is often referred to as lease-rented or borrowed from others. Now, I know the AAIS form, they include coverage for lease-rented or borrowed to others when the insured is leasing out some of their equipment, but it is a very small sublimit. So if you have that exposure, you definitely want to double check with the insured to make sure that a higher limit isn't necessary and make sure that you're collecting the appropriate premium for that exposure. Hey, and one thing before we leave this slide, I really want you guys to be conscious of the fact that you may have an insured that will use their lease and rent it from others' coverage that many of us are providing on our coverage form one way or another. They may lease a piece of equipment and then turn around and re-rent it or lease it to someone else. So be really conscious of how your carrier-specific form responds to an exposure like that. I'm never thrilled to see it, but I'd be naive to think that it doesn't happen. It happens a lot more than you think in the event of a loss. Who's going to actually be ultimately responsible for the payment? As an underwriter, guys, you will not get that bit of information unless you're actually probing for it. So make sure if you see that this is an exposure or if you're putting up a really high lease to rent it from others' limit, why? And making sure, are asking that question, and it may be built into your supplemental app. So if it is, asking that question, how often are they re-renting equipment or if they are? And it'll give you the opportunity to maybe review some contracts to make sure that you're best protecting your interest. Had to get that off, Kasey. Yeah, yeah, for sure. And another point about the lease-rented, lease and rented equipment from others, you should rate it based on the estimated annual expenditures for the year. So you want to make sure you have a good handle, and that's a good way to calculate how much you should be charging and what exactly that exposure is for the insured. So I think we addressed that somewhere else in the slide, but just wanted to make sure that we touched on that. Okay, property not covered. So generally, a good rule of thumb is if it can be covered on another policy, another insurance policy, it's going to be excluded on our inland marine policy. So for example, you have the aircraft that's going to be on some sort of aviation policy, you know, waterborne property is usually start to get into ocean cargo type or ocean marine type exposure. Vehicles, vehicles is one that if they're licensed for highway use, they are typically covered on an auto physical damage policy. But like we said at the beginning of the presentation, we do have the option to kind of manuscript that coverage onto an inland marine policy if you feel the need to do so. Just make sure that you are, you know, checking all of those criteria as far as drivers and NBRs and all of that information. And you also want to make sure that you're collecting, you know, a good rate for that type of exposure, because it is a manuscript and it's not something that you would traditionally look to cover on an inland marine policy. Also, a lot of the coverage that is listed here as property not covered is added back either via coverage extension or some sort of supplemental limit that's built in to the policy language is kind of a perk or a selling point. And you'll see that, you know, like I said, it varies by carrier or product, but you may see that as well, where the coverage is built back in. I see that property while underground, right? That's something that could be not covered, but then a quick give back, depending on, again, your carrier. So, got it. Cover cause of loss. So, interestingly enough, the AAIS form, it's basically, it's covered unless it's specifically excluded. And there are maybe, I think, 12 actual exclusions listed. So, if you think about that, think of everything that could happen when you think about perils, it's really a broad form. So, just know that, that if it's not listed or if it's silent, the form is silent, it's interpreted as coverage being applicable. So, definitely a broad form. It used to be referred to as an all risk policy, carriers are kind of getting away from that term, but, you know, it is still a very broad coverage form that it's provided. Yeah, for sure. All really good points, guys. And recognize what we're selling on the underwriting side is a contract and a promise to pay, so really make sure that you get to know your coverage forms. I know a lot of times it may be a little hard to read them independent of a real life experience if you're newer into the underwriting world, but I promise you, like, this is your product, this is where the rubber hits the road. And ultimately, a variety of court cases and depending on where the jurisdiction that you're insured is operating at or you've had the loss, it all comes into play. So, really important slide and really the takeaway is to make sure that you're learning your coverage forms if you don't have a good grasp on what your policy is doing already. All right, that brings us to our next poll question, true or false? Vehicles that are licensed for road use are excluded from the contractor's equipment policy. All right, true, that is very true. But like we said, it can be added back if necessary. Okay, here are some common, I think there's five here, five coverage extensions that are, like I said, common with most policies. And the good thing about most forms, say for example, the debris removal limit is only 25,000, but you need 50,000 to sell, you can generally do that, just maybe by increasing your rate just a little bit more. So there's tons of flexibility around the coverage extensions that we can offer. And that's generally, I would say, typical for all forms. There are some additional ones that aren't listed here, but that are imperative for our industry or for inland marine coverage specifically. Rental expense reimbursement, refilling of fire protective devices. So once there is a loss or once you use those fire extinguishers, the refilling of that is covered or it can be covered. And expendable supplies, which include like equipment parts, oil, grease, or spark plugs, all of that can be covered or added as some sort of policy extension. Yeah, guys, I mean, oftentimes, these are your freebie coverages, as Casey just kind of teed up. Ultimately, we don't want to see a lot of exposure within our policies to these freebie coverages. I'm sure we all want them to look good and that we are able to provide a sub limit. Be careful with these limits and increasing these sort of ancillary coverages. If you're being asked that question, why? Why do I need a higher debris removal limit or a pollutant cleanup? Is that consistent with what I'm insuring? So just all things to keep in mind. I will say this is a pretty neat picture that looks like probably some sort of tornado activity area and we're doing some cleanup there. So again, you see the same piece of contractor's equipment. So it's all tied together, guys. I'm either lagging or Eileen, you may need to move that slide ahead. Oh, I think we jumped a few. And if you want to take a five minute break, that's whenever you tell me, I will put it up. Am I on the right slide? Yes, 104. Yep. Okay. Okay, so limits of insurance. So typically, the breakout will be a policy maximum limit, which is the maximum that will be paid out per occurrence. Then you have your catastrophe limits. So that could be flood, earthquake, name, windstorm, windhill, if you're in anywhere in the Southeast, we usually, we push to put a sub limit on for that type of coverage. And I think, as we have more hurricanes, that limit will become more popular. So definitely have options there. And then you can also add a per item limit, like if you're using a blanket form or something, you can add, you know, hey, I'm only gonna pay 2.5 million for this 2014 crane, as an example. Yeah, for sure. And I actually think, did we skip over the exclusion section on 104? Cause I know some people are taking notes and I'm gonna skip slides. 103, I'm sorry, yeah. Yeah. Okay, so we covered that one. There we go. Yes. So these acts are typically excluded on the general form, artificially generated electric currents, which is just a power surge caused by a local electrical company, work done upon property, mechanical breakdown. So we're not looking to cover just the wear and tear, or, you know, you have an employee that puts the wrong oil in the machine and causes it to malfunction. We're not looking to cover anything like that. Weight of load, tandem lifts can be excluded, brush or trash burning for landfills. Permafrost is, that is like a frozen layer of ground. So there's a lot of earth movement exposure there. So we're not looking to cover that. And muskeg is like swamp, swamp land. So it's made up of partial water and partial dead vegetation. So property found in those areas are like that. We don't, we prefer to exclude. The top three there. So if there's a fire as a result of any of those mechanical breakdown or work done upon property, artificial generated electric currents, the fire may actually be covered. That's really important. And, you know, you had just kind of leaned on the example we talked about earlier where one of the insurance was using an inadequate lubricant. And while that act itself wouldn't be covered, the resulting damage could be, just depending on what it is. So again, guys, we can't insure stupid, but we can try to underwrite to it. So again, we're probing for best in class, guys that know what they're doing, are taking care of their equipment versus the ones that maybe need a different set of optics on it that aren't doing maybe the same things that they should be, so. Yeah, I think we touched on that one. Okay. Okay, scheduled versus blanket. So scheduled is probably what we come in contact with the majority of the time. It's just a list of all the contractors equipment owned by the insured and a list of everything that we are expected to cover along with a value. And the insured should provide that and give us regular updates with regards to the schedule. Some of the underwriting advantages that you see here, it defines the exposure. So you know exactly what you have, each item is listed. So there's no guessing behind whether or not an item is going to be covered or not. It's easier to meet the insurance to value requirements. Cause like I said, there's a limit listed for each piece of equipment and you can omit coverage on certain items. So if you have, you know, older items or, you know, something that you don't want to insure, you can omit that from the schedule. Blanket. So blanket coverage is popular with like a rental dealer in the marine policy that they're usually on a blanket where we're saying, hey, you know, we'll give you $10 million in coverage. And basically you're, the insured is responsible for keeping up to date with the schedule. So when you have a blanket situation, you don't actually have the need for a physical schedule. A lot of underwriters would still like to see it, but there's not a need for it. And it removes the limitation of value per item. So because you could pay up to, you know, policy limits technically if there's a loss. So you don't have that limitation of saying, oh, I'll only pay 2.5 million for the crane. And also it's less paperwork. So it's easier to administrate because you're not keeping track of those contracting equipment schedules. So of course, if there's disadvantages with not knowing, so if you're using the blanket schedule, you may have inadequate insurance for value. You may have issues around that. And then also you may be paying a bit more just because more than what the equipment is worth, just because you don't have that same information that you have if the equipment is scheduled. So I think usually there's a combination approach of what we do or what I've seen. You might have a blanket coverage amount for you maybe call it miscellaneous items or miscellaneous tools under 100,000 would be covered on a blanket. And anything above that would need to be scheduled. So that's a common practice. And that eliminates the headache of keeping up with those small tools and all of that. You can just kind of, everything that's under that amount will be captured. And then we wanna see a detailed schedule for anything above a certain amount. Equipment dealers, right? They could have such a vast variety of different types of contractors equipment from maybe handheld items like chainsaws all the way up to cranes. And so just depending is that's a perfect example of kind of a combination approach as you described it in that slide. So fantastic. Deductibles. So deductibles are a safety valve for an insurer. And they're just something that we can have in our back pocket to make sure that the insured has some skin in the game as well. So you can do deductibles in varying ways. You can have a specific dollar amount per loss. You can have a specific dollar amount on large or high valued items. As you see, it's broken out here. As you start to get into larger schedules, you want to collect more upfront for the larger items. So you may do something like everything below $100,000 as a thousand dollar deductible, anything above $100,000, you know, $10,000. And then finally, you might have a separate deductible just based on the piece of equipment. I know Jason practices this very often. So you'll have a crane deductible, which would be 3% subject to a minimum of maybe 10,000. And then you can do a maximum. So the maximum is kind of going away. You know, a lot of carriers, you know, aren't really pushing to do that anymore. But I put it on here just because it still is an option and maybe you're coming up against, you know, some sales opportunity for you. So yeah, they may or may not want to see the maximum. The insured probably would want to push for a maximum, but the carriers kind of are shying away from that. Anything to add there, Jason? No. Again, that's the good news. If you guys are on this call, that means you're more than likely you're an underwriter and you're in the vast of, there's so many different approaches that you can take. And we all have different ways of getting it done. And I think that's how holistically we make up the segmentation of the industry. And so a lot of this is gonna really come down to the style and approach of your particular carrier. And so just really getting used to the risk tolerance and understanding, you know, what you guys feel comfortable doing. That answers some of these questions could vary greatly. So we are over on time. I didn't know. Yeah, I figured we could maybe just get through the next handful of slides to the next module. I think we only got a couple more and then we'll take a break and finish up. So valuation, this is similar to one of your traditional property policies. You have ACV or actual cash value, which accounts for depreciation, replacement costs, and then agreed value. Typically, we see a combination of the threes or of the two. I know for me, I do a lot of replacement costs on newer equipment. So equipment five years or newer, for example, and then ACV on all else. Agreed value, I try to stay away from because you run into insurance to value issues there. And you just wanna make sure where you can, you're accounting for depreciation and the age of the equipment. For sure. Co-insurance, it depends on the carrier with regards to co-insurance. It is a kind of a safety net, if you will, for the insurer to make sure that the insured is covering the equipment adequately as far as the values go. You can see it anywhere from 80 to 100%. Typically, no co-insurance is a fan fave, I guess, for the insured. But if you have concerns about how the equipment values that are listed or just if you can, it's a good idea to get the co-insurance on there when you can. Yeah, I mean, ultimately, guys, we just wanna make sure that we're carrying the right insurance to value. There are a couple of resources that I think they are listed in the end of the presentation, but machinery trader or a crane trader, there's some ways to kind of go out and just fact check, right? How is this value that's reported on this court application acceptable? All things that you can consider at the time you're kind of desk underwriting something. Coverage territory. So this is typical, I think, for all policies. You have a simply put, will cover property wherever located within the United States of America and Canada. A bit broader is will cover property located within the United States, its territories, possessions, Canada and Puerto Rico. And then why you could be looking at worldwide coverage. So it's important to know what your exposure is for the insured and make sure that you're tailoring the coverage to meet those needs. All right, here's some more. I think we touched on these briefly. Some more supplemental coverages that can be added to the policy. Rental reimbursement, leased or rented from others, leased or rented to others, business income and extra expense. With this one, with business income and extra expense, it's nice if you can have that specific to a piece of machinery. I think it's a very broad approach from a contractor's insurance standpoint to provide coverage for all of the contractor's equipment. So whenever you can, I would suggest, it's either referred to as business income or loss of use, maybe limiting that to a specific piece of equipment. Personal tools and clothing of employees. A lot of times this one's overlooked, just like as an add-on, but there is some exposure there, right? So if you have employees that are taking tools home or their clothing, it's usually not a super high limit that's included, but there is some exposure there to think about. Yeah, for sure. And just to double back on a couple of these real quick, recognize there's a true distinction between leased and rented from others, which is our insured taking possession of somebody else's equipment. Somebody else's equipment in order to execute a job versus leased and rented to others, where our insured may be bare renting a piece of equipment out to somebody else. You wanna make sure in those events that there is an executed contract, we're being added as a loss payee within that contract. So, and that whoever we're leasing the piece of equipment to has adequate limits in place. So if they overturn or damage this item that ultimately said underwriter, your policy won't respond. And the only way that you can really block and tackle for that is if you're asking for copies of the exposure and that information. So really good points in the supplemental coverages. And then also back to that business income and extra expense, watch that. That is one of those freebies, depending on your form, you may be thrown in a smaller limit. As Casey alluded to really making sure that you're diligent. Are you providing business income on the whole schedule? Which could be $50 million or are you gonna restrict it to specific pieces of items? Right now, usage of contractors equipment is really high. You got some high value limits on your schedule. You maybe have a 150, $250,000 BI limit, a million dollar BI limit. That segment of your policy could be attacked if there's not a replaceable piece of equipment available in the event of a loss. Are they buying certain specialized pieces of equipment coming from Germany or Europe? Or I've seen one in Ukraine. God forbid you had a piece of equipment that was built in Ukraine. And there's not a lot of replacement pieces around the world. How are you gonna, how is your policy set up to respond from a financial aspect in the event of a loss? All things to really keep in mind when it comes to some of these supplemental coverages. If you write enough contractors equipment, these coverages can jump up and bite you if you're not paying attention to the limits that you're putting out. So really good slide here, Casey. All right, that brings us to our next poll question. True or false? A contractor's equipment policy may contain only one deductible. False. That is correct for the 78% of you all. As we said in the previous slide, the deductibles can vary greatly. So recognize your business income deductible, your rental reimbursement deductible can be time element, right? After a certain amount of time has passed, will the coverage actually kick in versus the actual dollar amount? So, and again, depending on the exposures of your insured, maybe you have a separate deductible from your leased and rented to others from your standard equipment deductible. It all just kind of depends on your exposure. So you can absolutely have a variety of deductibles on a policy. And Eileen, I think this probably would be a good time to take a break and kind of hit this last bit of stretch of information here. Hopefully you got to find this useful. I think, yeah, by all the questions, I think it's definitely engaging with everybody and striking a note. Should I put it on for five minutes this time or 10 minutes? Five minutes I think will do it. We can hit this last stretch here. We got a few things to cover. Okay, perfect. You're back already? Come on, Eileen, can't stop, won't stop. We're ready for it. All right, here we go. I'm gonna put this away. I don't see it. Let's take it away. All right. So we'll try to pick up the place here, guys, and close strong. And again, appreciate you guys hanging in. Breaks the monotony, I know everybody's really busy and sensitive to time. But again, hopefully you guys are finding the work that Casey's done and myself very useful. So in this module, we'll call this the risk management module. And really, guys, we're just gonna harp on some of the points that we've already drilled out on. What constitutes a good risk? Recognize fundamentally underwriting the segmentation of the business, of the industry. We're constantly trying to separate who is good versus who is lucky. I'm constantly preaching that to my team. What are they doing that separates them from being the best at what they do versus just lucky? It's something that we're always probing for. One of the things that we could really work to use to establish that lucky versus good is loss control. Oftentimes, depending on your setup at your place of employment, we're stuck at our desk, we're on the phone, we're looking at applications and we're trying to make those sorts of distinctions. Lean in on your loss control reps at your various organizations. Some of you may be using a third party administrator for loss control, which is fine too, if there's an established relationship there. But lean in on those guys who are your eyes and ears when they go out and visit these insureds. They have the ability to differentiate between a good insured or one whose yard, Jason, it was messy, they got stuff all over the place. I kicked something hurt my shin when I was out there. They'll give you a whole story if you get them to open up. Really important to use those resources within your respective companies. Is the equipment in good condition? Just fundamentally, are they taking care of their stuff? Came across a couple of insurers that's presented a moral hazard, right? Where they were maybe trying to do some additional damage after a partial loss took place in order to try to take advantage financially of their insurance policy. Absolutely, who, as an industry, we're all looking to run from. Again, using loss control and claiming your claims adjusters may even have some opinion on that depending on the insured and the type of loss. Are they practicing proactively loss prevention, toolbox meetings, safety meetings? How often are they happening? These are all things that we really want to ensure that a risk has and as well as deductibles. Is there adequate risk alignment? You wanna make sure that there's enough skin in the game to where if an accident happens, they're gonna feel a little burn on their side too. And so always probing for that right risk alignment. And then we really, as we review files, wanna make sure we're distinguishing between fortuitous claims, accidental claims, versus something that's just pure negligence on behalf of our insured. And so always, again, guys, just remember, we're always trying to separate the good from the lucky. Okay? And the good should be rewarded for taking those proactive risk mitigation steps. And the lucky, you just gotta hold on and hope you ride it out. So here's just a quick question for you guys. Our last one, so make it count. That was the last one, guys. Have you guys used loss control resources to help understand a contractor's equipment risk? And feel free to continue to use the chat box to chime in. Have you been on site visits? Have you maybe not been on site visits, but want to? I tell you, some of the most valuable stuff that I've learned has been through loss control. So we'll give you guys a second to answer. Nice. That's great. That's fantastic. Really important that, again, depending on the structure of your organization, really, I don't care what the structure of your organization is, you need to get out and go out and see these insureds. You need to get out and touch them and make sure that you are really experiencing what this work looks like out in the field. You know, one of the things we- I just want to add to that as well. So you might be in a situation where maybe the Inland Marine portion of the risk, it doesn't warrant a loss control survey or a loss control visit. You can always tap into the other line. So maybe if you're doing a GL or, you know, the property, you can tap into the other lines to see if they make any notes in their survey regarding the Inland Marine or property exposure. So that's a resource for us as well. It does take some partnership between lines, but that's definitely helpful. And I'm sure the company would also appreciate that. Fantastic point, Casey. You may work for a company that only does Inland Marine, or you may be a part of an organization that is doing all sorts of property and casualty and maybe even some professional line services. If you guys are taking a multi-play approach on an account, you just hit it out the box. That's a fantastic point. You can read between the lines and kind of get a idea of who's good versus who's lucky. So that's really good. Management best practices, right? What makes everyone on this time fantastic underwriters is that you guys are participating in an organization like IMUA because we all wanna advance the cause and share knowledge. Are your insurers involved in organizations within their industry that are demonstrating the same sort of characteristics? That's exactly what we're looking for. Are they a part of their trade association for their said organization? What is their background, right? Some of these guys may have came up working through John Deere or maybe a specific crane company or construction company and kind of struck out on their own. What type of best practices are they taking along the way? Training programs, safety programs, financials, right? You wanna make sure that there's enough money behind these guys that they don't get in a pinch and try to set their piece of equipment on fire. It happens, okay? So we're always probing for these sorts of best practices and obviously maintenance and inspections, we talked about for your larger commercial pieces, there are annual inspections that are available. And again, feel confident and comfortable asking for this sort of information from your retail agents. Valuations of equipment. Again, we talked about earlier, crane trader, machinery trader, they're all ways that you can essentially try to identify valuation methodology, recognizing actual cash value or placement costs are all gonna be on the table, agreed amount, which Casey alluded to. But you also wanna make sure that you understand your carrier's valuation type. And you also wanna get an idea of these pieces of equipment. When you're looking at a schedule, Google, look at the types of pieces of equipment, get to know the manufacturer names and types. You can actually drill down and look at the maintenance schedule of some of this equipment. Are they taking care of this? Where is the insured getting equipment from? Are they buying used equipment? Are they buying a brand new equipment straight from the manufacturer? These are things that can really help you make effective underwriting decisions as you work through an account. Life expectancy. Again, it's gonna vary by pieces of equipment and the associated preventive maintenance that's put into it. But these are all things that you can really easily research at your fingertips. And then also just a market demand. How is the economy at the time? Again, are we coming out of COVID, which was the most drastic of all scenarios that we could ever dreamed of? Or are we in a really hard market sort of construction era where, again, equipment utilization is high and replacement pieces of equipment are gonna be hard to find. So therefore the values of equipment could be going up, which I think we're starting to see now as well. Again, internet auction sites. Google is amazing. It's amazing how profitable this industry was before Google, right, Casey? I mean, it's amazing. This slide is talking about just probable maximum loss, which we touched upon earlier. Again, if you guys can jump back visually to that slide where we had the aggregation of equipment. It looked like a lot of dozers and excavators essentially establishing what is our total chance of loss at any one location, given one of your insurers maybe you'll have six or seven terminals. Which one is their main busy terminal? And establishing a probable maximum loss based on that or something as fundamental as identifying what are the three or four to five highest valued pieces of contractor's equipment within a fleet and what does that look like? And did you advance the slide? Cause we're still looking at. Okay, there we go. I'm getting excited here. This is my stretch here, Casey, that you could tell. The probable maximum loss guys, this is where I'm at. Again, just making sure that you're identifying this throughout your underwriting process is going to be key. You want to make sure you're getting enough money and deductibles, you know, in some cases you may want to have a different deductible at the terminal versus when the individual pieces of equipment are out in the world or at various job sites. Again, you can kind of lean on your management and the strategy of your company in order to make those sorts of decisions. But P of L is definitely something to be conscious of. Equipment transfers and joint ventures. Casey, you had early in the slide presentation mentioned a drag line or I've seen some pretty large cranes or other really oversized pieces of contractor's equipment that may have joint ventures where you may have more than one company that actually owns this piece of equipment or maybe there was something being built and they specifically manufactured a piece of equipment for a particular job. Be conscious of if joint venture ownerships of pieces of equipment. We talked about borrowed equipment earlier, making sure you understand how your policy responds for lease rented and borrowed from others or even to others, because again, two totally distinct things that we have here. Again, we touched on joint ventures, all things just to be cognizant of. Ownership, generally with Inland Marine, I say generally, very loosely, but generally you're gonna have a first name insured, but there may be situations, and coverage will kind of flow down, but there may be situations where, again, there could be a completely another entity that needs to be named as a named insured on your policy. So just really understanding how these things are arranged when you get into a deal is gonna be key. Inspections and surveys. Generally, these happen post-bind. Depending on the complexity of the risk, you may have a new business inspection ran, depending on how complex, and if you guys wanna expend the resources of that upfront. As Casey alluded to earlier, you could also look at general liability and workers' comp surveys. Again, you can really gauge a lot of information about management attitude and best practices just by leaning on some of the casualty segmentations of the risk. So all of that's available. Again, we talked about crane inspections. You know, again, every 12 months means an inspection is conducted. There's essentially an anniversary date. So just especially for pieces of equipment that could damage the public even more, and that's why I kind of skewed more towards the larger pieces of equipment, there is an annual inspection done. Ask for it. Do you have a copy of it? Again, and you may, depending on the complexity of the inspection performed, it could be up to upwards of 200 points. You know, is this a passing grade? Is there work need to be done? These are all things that you can take away from those inspections. And then that safety and operational survey, that last bullet point there, it's just really for unique jobs. Again, I've seen some pretty gnarly stuff. I know in the past, you know, we've looked at space shuttle moves and submarine moves. And, you know, some of our insureds are moving, you know, some of the largest objects in the country. And so, again, maybe having an opportunity to go out there by sending a loss control rep, or if you can get out there yourself as an underwriter along with your agent and get an idea of what's going on is something I would always encourage. So, in this module, we'll just kind of talk a little bit about loss control and loss prevention. Sure. So, loss control and loss prevention, this really, we're all looking to write best-in-class business. So, your best-in-class operations are gonna have a heavy emphasis on loss prevention and control. And it really speaks to the mindset of the insured that you're going to be working with. And it really speaks to the mindset of management with regards to what they're doing or what they're willing to do to prevent those losses from happening. So, our first one here we're looking at is theft. And we have a list of some of the things that they can do physically to prevent the theft, you know, whether it's having just access or limiting control points, additional lighting at job sites and key controls. And some of your really outstanding risks will even have a personal security guard on site. This is, you know, we're talking companies that are making a ton of money and that can afford to do that. And, you know, just because they do that doesn't necessarily mean that they are best-in-class or just because they don't have one doesn't mean that they're not best-in-class, but that is an extra step that they can take to really set themselves apart or just really put it out there that theft, you know, is important to them and they're not looking to suffer those types of losses. So procedurally, they can just communicate that to all of their employees through, you know, pre-employment background checks, checking inventory regularly, even having conversations with stakeholders about what the plans are and what kind of financial backing you would need to implement some of the physical strategies. So it really is an opportunity to understand the mindset of management when you go in or you get an application and they're telling you everything they're doing to prevent the theft losses. Do you have anything to add there, Jason? Other than, guys, it's 2023 for, I'm dating myself here with this comment, but it's the Jetsons year. If you guys aren't, if our insureds aren't using some sort of technology to try to help mitigate loss, I mean, we can whip out our iPhones now and essentially look at a job site or a location. If there's something critical there, there should be some sort of partnership or risk alignment that you may want to consider. That the expectation, the bar is continuing to rise from a technology standpoint, and we want to see our insureds and help them get to that point so that they can help us mitigate risk. Fire, so we touched on this one quite a few times. So basically, for the heavy equipment, the maintenance is going to be key, or for all equipment, the maintenance is going to be key. I think one of the things that we talked about I think one of the notes in the chat was the larger the equipment, the more fuel is going to be housed within that equipment. So fire potential increases based on the size of the equipment. We want to make sure that we have a technician in place. Like I said, this could either be an employee for some of the larger companies, they'll have an employee on site that specializes in X, Y, Z pieces of equipment, or you can have a third party vendor come out and inspect the equipment. Either way, we just need to make sure that that's happening and it's happening on a regular basis. Yeah, for sure. Flood and weather related losses. This is a big one for us here in the Southeast. If you're not in the Southeast you're going to enjoy it. But we're always thinking, what's the insurer's attitude around weather related claims? If you're in Florida and you're on the coast, are you prepared to move your equipment to higher ground in the event of a hurricane loss? Are you watching the news to make sure that when you get those hurricane warnings that you're ready to spring into action? And it's not just enough to watch the news or monitor the forecast on the news. You need to jump and like I said, jump into action and put forth some effort to mitigate those damages. So that's really what we're looking for with regards to best in class risk. Like I said before, we do have some ammunition that we can use as far as deductibles. So if you're in a high flood zone, maybe you want to throw a higher deductible on there, or if you're in a wind prone area, put a large deductible on that so that the insurer has some skin in the game. But ultimately we need to make sure that there is some sort of preparedness or some pre-planning that goes into these weather related losses, because it seems like they're only going to get worse as time goes on. Yeah, that's a great point. And I think a part of this can tie back into some of those trade organizations that maybe our insurers are subscribing to because that's where an insurer can really find a lot of these sorts of established contingency plans that are already out there. You know, if you're in the logging industry, you know, there are some logging organizations out throughout the U.S. which I'm sure some people on this call are aware of that, you know, our insurers can find those sorts of risk mitigation and disaster plans available to them. So, all very good points. All right, and the last slide for this module is in transit. So, like we were saying, huge exposure with moving this equipment to and from job sites. So, you want to make sure that you are just almost like from an auto approach. Are you looking at NPRs, motor vehicle reports, you know, with the pre-employment screening? Are you checking driver's license? What kind of training is involved with your drivers? Routing and permits is a big one. A lot of times you'll get a loss just because the driver didn't realize that they were going under a bridge that was too low for the cargo or for the equipment that they were carrying. So, all of that can be determined before the route even begins if they're doing their due diligence and doing their research with regards to routing and getting those permits. Also, our best-in-class business is going to have the escort vehicles or the pilot vehicles. We've all seen them, you know, when you're carrying a really large load. You've got the, you know, the car in front that's blinking and the car behind just kind of bringing awareness to what's being towed or what's being transported on the road. So, these are all things that we really look for and we want to see with our insurers, and they're definitely going to help you get closer to those profitable accounts and those accounts that you can feel comfortable riding. Yeah, for sure. Okay. All right. So, yeah. So, this is just kind of our last point, guys, just to kind of go over claims. You know, ultimately, this is when it gets real for us, is at the time of loss, and our contract is called to the table to make sure that we're going to step up and provide coverage as intended. So, just here's an example of just some losses. Here's one of our street and road pieces of equipment overturned. I hate to see that, but it happens. Here goes. This is definitely not one of my insurers. I mean, Casey's probably one of yours. But this happens to a tropical area, right? And you can see here goes your tracks down here that are rusted out, never a good thing. And obviously, they're doing quite a bit of work. And oh, look at this genius here, right? It gets even better, right? I tell you, all of our equipment exposure guys are subject to the stupid rule. And I don't mean to say that to offend anybody, but sometimes, you know, people just do some crazy things. And they're honest mistakes, and that's why they buy insurance. But just recognize they're buying insurance from you, and your policy's going to ultimately respond. And wow, just look at that. There goes your waterborne exposure. How about that? So, just the breakage of key components obviously can lead to loss. You know, Casey, you just touched upon the transit exposure, obviously damaging the booms or the hydraulic lines depending on what we got, whether it be a forklift or a crane. We talked about the lifting and rigging exposures. When we talk about rigging exposures, we touched upon companies that do just rigging, right? Let's say the strapping isn't necessarily right. We could be lifting a 60, 70,000-pound, two-ton, three-ton object. If the rigging is done incorrectly, it can definitely put our boom, our piece of contractor's equipment in jeopardy. So, a fair question to ask, especially when it comes to maybe some of these crane companies are, you know, who is performing the rigging work? If it's not our insured, give me the top three rigging contractors that they're using. Give you a chance to kind of vet them, Google them, look it up. Are they in the news? Very, very fair question to ask. You know, a lot of times when these larger accidents happen, the news is going to be there in some form or capacity. You can find out a lot using Google. And again, you know, recognizing where has the equipment been manufactured, the different types of equipment. If there's a loss, is there another one readily available, or is there a current backlog on the piece of equipment? There's only a finite amount of equipment in the country, believe it or not. And depending on what it is, there's not a lot of replacement parts sitting around. You could inadvertently be up on a very high valued item and not really know it, hard to replace item until that time of loss. So again, all things to vet. This slide kind of just goes into the claims handling process. One thing we talk about to our team at NBIS quite frequently is just recognizing how many people are impacted by the policies that you write on the upstream. Sorry about that. Go ahead, Casey. No, I was just saying we were still looking at 132. Thank you. So to that point, how many people can be affected by your policy that you put in place? You know, we get a submission, we underwrite the exposures, we talk to the agent, we get the deductibles and the terms and then the price, right? We bind it and move on. The back end of your policy is so important. They're going to be paying attention to things like valuation of equipment, conditions and exclusions. The loss payee, you know, are you scheduling loss payees? Are you guys doing them on a blanket basis? These are things that you need to know. Claims people inherently have to deal with things like bad faith and punitive damages. These sorts of things can go beyond your coverage limit. Again, I know we're talking first party here, but if you're partnering with a casualty counterpart, you could inadvertently be on the hook for a whole lot of limit, not just across your equipment policy, but just through the rest of your underwriting department inadvertently if you're not paying attention to certain details. Recognizing that any sort of punitive damage can go above and beyond what any sort of applicable policy language is. You know, Casey, I'm driving my kids around all of these practices and stuff and you hear on the radio, these plaintiff attorneys, we got country songs, we got rap songs. They're totally designed to attack our policies constantly and they're training the public and these juries to go after our policies, even when we're not at fault, right? And so these are all things that we need to be conscious of and recognizing that our claims adjusters are oftentimes battling with these plaintiff attorneys in order to settle these claims. Again, maybe not as much on the contractor's equipment side. I would almost say 75 to 80% of the time you have an equipment loss, there's a good chance there's an associated liability loss that may accompany that. So just some things to keep in mind. Again, we talked about exclusions. Let me move this slide forward. Limits, loss payable, how does your company respond? For the interest of time, I'll kind of breeze through this. Time element claims, you know, let's see. These payouts can go well beyond our limit of insurance. That's why I talk about being sensitive to business income or your continuing rental expenses. Make sure your guys are paying attention to your ancillary coverages. It's not just about the actual piece of equipment all the time. It could be the supplemental coverages that could jump up and bite you if you're not paying attention to those types of losses. Again, we talked about coinsurance, wait periods, right? Deductibles can be on a time basis as well as a dollar basis, depending on the coverage. Be very intentional. Again, as you guys are rolling out your policies, what you're exposing your company to in the event that when you guys are making these sorts of deals, all very important. The investigation process, there's definitely a claims process. If you guys have an in-house claims group at your organization, I highly, highly encourage you guys to spend time with them. Get to know a couple of your adjusters. It's so important that underwriters make that connection with claims. If you happen to be aligned with a separate TPA, get to get to know a couple of the people at the firm. Ask them questions about how they treat your policy downstream. There's so much that you can learn. Use of experts. In this case, we've been talking about contractor's equipment, maybe equipment adjusters. Maybe you have a specific set of adjusters that are used to evaluating contractor's equipment losses. Get to know them. Talk about them. Share information across claims and your adjusters is all important. Financials. When you look at loss of use components, you can bring in forensic accountants can be a part of the claims process. Always be sensitive, guys, on the underwriting side, how downstream the decisions that you're making up front can affect the rest of accounting, claims, adjusters, field adjusters, loss control. There's so many people that touch your policy. Ultimately, you're insured, your agent, your broker. All of those guys can be affected. Here's just some pretty neat losses that we were able to dig up to just talk about different types of loss. Obviously, theft is going to be our biggest peril that we're always going to underwrite to as well as collision and then fire. Those are pretty much, regardless of the classes of business, are going to be your cause of loss leaders. It could fluctuate a bit, but just in macro and talking about equipment across the industry, that's where we're at. As far as the types of thefts, your smaller handheld tools, your riding lawnmowers, your garden tractors, your mowers that could be used by a wider range of people than maybe some more specialized pieces of equipment are going to largely lead your theft types, but then also your skid steers and backholes and wheel loaders that we talked about earlier in the presentation are all susceptible to theft. I think my guy, Stephen, who's been really good about chiming up, talked about wheel locks and having some preventive maintenance on GPS tracking. There's a whole lot of things, guys, that are available. Use Google, lean on the more experienced people at your company. What are you guys using to help guide your insurance to risk mitigation, especially from theft? As we enter the month of March here, I know I heard it was snowing up in New York, so we're not quite there. I'll tell you in Atlanta, in case he knows this, it's warm. It's 80 degrees today, prime time for theft. People are out later. They're getting involved in stuff they probably shouldn't be. There's opportunities for crime. Again, the summer months, theft tends to heat up across the nation with obviously a dip around the winter time as you won't maybe have so much activity depending on where you're at throughout the country. Again, site securement, poor lighting. Again, loss control reports, guys. Always be looking for high valued items, hard to replace items, items that are easy to steal, easy to sell. A lot of contractors' equipment does not have a title per se, so normally there's a serial number or something that's going to register that equipment. There are some organizations, National Equipment Register, RR Insurance, utilizing that. Definitely a question you want to probe for and ask for at the time of underwriting. Eileen and I with IMUA did a fantastic presentation I moderated last year with motor truck cargo thefts. These theft rings are real. They're coming up from Mexico or overseas. They can get very creative. All of that stuff is very real and can impact the performance of your book. The losses can happen over the weekends or holidays. It's all on the table. Again, just be sensitive to these sorts of things, guys. Subrogation. In the event of a loss, if it's not our fault and the proper contracts are signed, well, you can maybe push liability away from your insured on to somebody else. Take advantage of that. As Casey and I mentioned about reviewing contracts, and again, I really encourage you to get with your in-house attorney or maybe some more experienced underwriters on the casualty side if you're uncertain about this. Review contracts for risk transfer. That's a really big key to protecting your book. Subrogation, your ability to go back after the responsible party. In this case, we're talking about contractor's equipment. We're talking about first party losses. We're going to make the insurer whole, but ultimately, we need to have the ability to go back and recover money from the responsible party. Now, this stat, 21% is more of a nationwide stat about recovery percentage. Depending on how effective your carrier is about subrogation and the nuance of the loss is going to really deem how effective you can be. When it doesn't work, a lot of it comes down to carrier attitude. Sometimes, they just want to pay and make it go away. Sometimes, it's record keeping on the insurance part. I've definitely seen that before. Law enforcement. Sometimes, they're not able to help track down these pieces of stolen equipment or recovery rates could be low in certain segments of the country versus others. It's all on the table. It's all on the table. Just here's some resources, guys. Again, I talked about the National Equipment Register, ner.net. Make sure you guys go reference that. Obviously, the imua.org is a huge resource. I know somebody in the chat room earlier was asking about certification status. I believe if you pay, if you still pay for the certain access to NCCO, which is the crane certification organization, you can actually have the ability to pull up operator certs yourself. You can verify if this operator that works for your company or one of your insurers is actually operated. You can validate the status of his license. There's a host of different resources out here. We wanted to include. We talked about AAIS. We talked about ERMI, which is that we didn't really go into ERMI too much, but they do a great job on property insurance. A lot of good information there. ISO is a great place for information. At your leisure, keep this presentation handy, guys, and you can go through it. Hopefully, I left enough time for questions. I think we're a minute over, Casey. How about that? All right. Eileen, you still with us? We're still here. We're still here, Jason. Yeah, fantastic. You guys- I can find your questions. I know there was a lot of comments about how awesome this has been. Do I see any questions? Yeah, I see a Sierra. Yeah, you come down to Atlanta. You can hang with us. Hey, for whatever it's worth, I'm going to be at Con Expo next week. I'm sure some of you may be out at Con Expo. Feel free to pull up on me. Come find me. I'd love to meet you guys in person if you happen to be out there. All right. Well, thank you, Casey and Jason, for a fantastic course today. You took a very comprehensive topic. There was a lot covered and just made it very digestible and easy to understand, and we really appreciate that. It was fantastic. So, I think we get to pick two winners for that interview. So, I think we get to pick two winners for that. Is it $1,000, Amazon? Or is it $1,000? No. I thought it was a million. I thought it was a million, but since we can't agree on that, I think it's going to be $25. All right. Fantastic. We get two, right? Yes, absolutely. Fantastic. Well, I know I want to give a big shout out to Steven. He did a great job chiming in to this presentation. Steven Cole, you are definitely the winner of one of those Amazon gift cards. Appreciate you chiming in and helping us continue to push this presentation forward. So, we'll make sure Lillian gets your information. You want to grab somebody else, Casey? Oh, man. I see Sierra. Looks like she's been pretty active with a lot of good questions. Nolan. Yeah, absolutely. Absolutely. Yes. Okay, great. So, I'll send a $25 Amazon gift card to Steven Cole and Kira Nolan, and that's fantastic. Congratulations to both of you. I know everybody's busy. I hope you guys found this useful. Yes, and thank you to our attendees for your participation and your questions. Allie put in the chat a link to our Survey Monkey. When you have an opportunity, please click on that link and provide your feedback to IMUA. We want to know what worked well and what we can improve upon. Also, I know Jason mentioned earlier the Transportation Forum, which he moderated last fall. He moderated one of the days of the Transportation Forum. We have the Transportation Forum and lots of on-demand education on the IMUA website, so please go to imua.org and then click on All Access, and you can see a lot of the things that we talked about today. We also have e-learning courses, introductory-level e-learning courses. There's a lot of good information there. So, this concludes today's program. Thank you so much, everyone. We'll see you next time. All right. Thanks, Casey. This was awesome. Thank you. Jason, thanks for the invite.

tunnel boring

infrastructure projects

underwriting

contractor's equipment

risk mitigation

location exposures

weather-related risks

coverage exclusions

policy forms

leased equipment

coverage extensions

equipment valuation

loss prevention

claims handling

risk management