Crane Insurance Market Conditions
Litigation factors are driving up costs
By Kevin Cunningham
Editor’ s Note: This is the first of three articles by insurance industry expert Kevin Cunningham addressing the malady of rapidly rising insurance costs in the crane and heavy-haul industries.
Today, crane insurance costs are rising, driven by record-breaking nuclear verdicts and Third- Party Litigation Funding( TPLF).
These two factors are prevalent today in all industry segments, but especially in high-hazard businesses.
In recent years, nuclear verdicts have grown in size, scope and frequency, mainly because when an accident happens, private equity
companies and plaintiffs’ lawyers are more often using TPLF.
For readers not familiar with the insurance business or legal profession, TPLF involves a deep-pocket investor, such as a private-equity company, investing money so attorneys can mount a well-funded case on behalf of a plaintiff in order to win an exorbitant amount of money that everyone can split.
TPLF does not aim to get a fair settlement for an injured plaintiff; it looks to win a lot of money for the attorneys and the investors.
The insurance industry( insurers and reinsurance companies) pays the price for these unfairly large verdicts, which hurt not only the overall insurance industry but also the companies it insures, for example crane owners.
The result is that all insurance buyers are feeling the pain of rising costs, and crane company owners are feeling the brunt, due in large part
14 October 3, 2025 www. contractorshotline. com