Crane Capacity Explained: Knuckle Boom vs. Telescopic Crane

by Katie Petersen | Mar 7, 2023 | Risk Management | 0 comments

CRANE CAPACITY EXPLAINED: KNUCKLE BOOM VS. TELESCOPIC CRANE

Written by Hans Tielmann

When it comes to tree removal, having the right equipment can make all the difference in the world. Two types of cranes that are often used for tree removal are knuckle boom cranes and telescopic cranes. Both have their own unique features and capabilities, and each has its own set of advantages and disadvantages. In this blog post, we will compare knuckle boom cranes that are measured in meter/tons to US ton telescopic cranes and how they relate to the tree care industry.

Knuckle boom cranes are a type of crane that uses a series of articulated joints, or knuckles, to bend and move the boom. These cranes are typically measured in meter/tons, which refers to the length of the boom and the weight it can lift. Knuckle boom cranes are known for their flexibility and versatility, as they can reach into tight spaces and move in multiple directions. They are also relatively compact, making them easy to transport and maneuver on job sites.

US ton telescopic cranes, on the other hand, are a type of crane that uses a series of telescoping sections to extend and retract the boom. These cranes are typically measured in US tons, which refers to the weight they can lift. Telescopic cranes are known for their strength and stability, as they can lift heavy loads and maintain a steady position while doing so. They are also relatively large and heavy, making them more difficult to transport and maneuver on job sites.

In the tree care industry, both knuckle boom cranes and telescopic cranes have their own set of advantages and disadvantages. Knuckle boom cranes are ideal for tree care professionals who need to reach into tight spaces, such as between buildings or under power lines. They are also great for working in urban areas where space is limited. On the other hand, telescopic cranes are ideal for tree care professionals who need to lift heavy loads, such as large tree sections or move heavy equipment. They are also great for working in rural areas where space is not an issue.

Let’s wrap it up! both knuckle boom cranes and telescopic cranes have their own unique features and capabilities that make them ideal for different types of tree care work. Knuckle boom cranes are great for reaching into tight spaces and working in urban areas, while telescopic cranes are great for lifting heavy loads and working in rural areas.

Ultimately, the choice between these two types of cranes will depend on the specific needs and requirements of the tree care professional.

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The Hard Market Is Here

by Katie Petersen | Dec 6, 2022 | Risk Management | 0 comments

The Hard Market is Here

Written by Eric Petersen, CIC

Like most industries, the insurance industry has market cycles. The insurance industry uses the terms “soft” and “hard” to describe the particular economic conditions the industry at large is enduring. As a whole, the insurance industry has been operating within a soft market for most of the past decade. In a soft market, insurance companies are more willing to take risks by insuring businesses and individuals who may not meet an exacting underwriting criteria. They also typically do this for a cheaper cost than during a hard market. The soft market creates a greater competitive situation for insurance companies and therefore the insurance customer will get better coverage for less money.

The flip side is a hard market, where insurance companies become more strict and rigid with their underwriting requirements and prices go up to reflect their discomfort with the risks that they are insuring.

Now while some may argue that insurance for tree care companies (especially General Liability and Workers’ Compensation) seems locked in a perpetual hard market, all indications point to a hardening market for all tree care insurance coverage lines coming in 2023.

There are many factors that contribute to why the insurance market hardens, but here are the most common factors:

Insurance Company Investment Income – In a perfect world, insurance companies will make their income from their investment portfolio, versus from their underwriting revenue. When investments are not growing at an acceptable rate, insurance companies need to make up the lost income by raising their rates for coverage.
Economic Uncertainty – Like most other industries, the insurance industry does not do well with economic uncertainty. The unknown of what is coming typically makes insurance companies protect their financial strength by increasing their rates to balance out losses to their company, whether that be from future claims, inflation costs to existing claims or from past claims being reopened.
“Social Inflation” – Today’s legal climate is unpredictable in many ways and leads to what insurance experts call social inflation. Large jury awards (otherwise known as “nuclear verdicts”) raise the potential for a minor accident to turn into a multi-million dollar case. Insurance companies have been on the front end of these social inflation claims for many years now.
Loss Ratios – When an insurance company is paying more dollars in claims than they take in from premium, their loss ratio begins to swell and the company loses money. Large weather events that produce widespread damage are a major contributor to loss ratio problems across the country.

So what can you do about the upcoming hard market to minimize the impact to your company?

Up your Risk Management Game – You’ve heard us talk about how purchasing insurance is only part of risk management before, but it becomes even more important when the insurance industry is in a hard market. Identify what areas of your business could be improved to reduce the likelihood of an injury or accident happening and then implement a plan to take action upon that risk. Seek help from your insurance agent and insurance company on what proactive risk management activities will have the most impact upon your insurance rates.

Explore Self Insurance with Intent – Every insurance claim that you file has an adverse impact to your insurance cost. Look at increasing your deductibles so you aren’t as willing to file a small claim as well as find areas within your insurance coverage that you can self insure, think small tools/equipment or the physical damage on older vehicles. A lot of little insurance claims will have a much greater impact on your insurance cost than one large one.

Explore Non-Traditional Risk Transfer Options – Captives or self-insured funds become more attractive to larger tree care companies when the insurance market hardens and traditional insurance programs cannot offer stable rates and terms. There are many different options to explore so work with someone who understands each of the options available to help you select the appropriate one for your business.

Choose the Right Agent – Ensure you are working with an agent who actually understands your business. Your agent is the first line of defense versus large premium increases and insurance market instability. They will know when an insurance rate increase is fair and justified and when it is out of line. They also will know how to position your business to the insurance company to receive the lowest possible rate.

Understanding what a hard market is and how to minimize the impact to your company can be a huge difference maker in your profit margin. Make sure to ask plenty of questions when reviewing your insurance policies with your agent at renewal time. And while no one knows for sure how long or severe a hard insurance market will last, they typically are shorter in length than a soft market. If you have any other questions on what the changing insurance market means for your business, please contact an ArboRisk team member today.

Risk Management Concerns When Hiring Minors

by Katie Petersen | Sep 30, 2022 | Risk Management | 0 comments

Risk Management Concerns When Hiring Minors

Written by Ryan Watry

In my daily conversations with tree care companies, finding good employees seems to be the number one issue they face. Sometimes the solution to that problem is hiring a minor to help. Hiring someone under the age of 18 does create some different risks and needs than hiring an adult. Here are three areas to be aware of when considering hiring a minor.

1. Regulatory – Each state will have a similar but specific view on the regulations surrounding employing minors. Start by contacting your state’s Department of Workforce Development to find out specific restrictions that may apply. For example in Wisconsin, tree work is considered hazardous employment. This means that a minor can not operate machinery including chippers, skid steers, chainsaws, etc.. They are permitted to work on a ground crew, cleaning up and dragging brush. You also should ask about other employment guidelines such as, the number of hours they may work and if they need a work permit. After you understand your specific state laws for minors, refer to this US Department of Labor website to ensure you are following federal laws.

2. General Liability & Business Auto Insurance – Depending on your insurance carrier there may be restrictions in your general liability and/or business auto policies that restrict what a person under a certain age can do and what vehicles, if any, they are allowed to drive. Many insurance companies do not want anyone under the age of 21 to drive for your company. So it is important to check with your agent to see if there are any restrictions on employees under 18. If you are struggling with young driver eligibility, creating a driver management program within your company will help. Check out this article which talks specifically about creating a driver management program.

3. Workers’ Compensation – Workers compensation insurance will cover any employee regardless of age. However, there are different benefits added in for someone under 18 who gets hurt. Again, these benefits differ from state to state, so we recommend checking with your insurance agent on your state’s specifics. In Wisconsin, if an employee under the age of 18 sustains an injury that results in a partial or permanent disability, the lost wages (or indemnity portion of the claim) paid out will be triple what they would normally be for someone over 18. Also you can be fined by the state and OSHA if it is found that the minor employee was operating equipment they were not permitted to.

After researching each of these three areas, you will be able to determine if hiring a minor is right for your business. Who knows this, may lead a young person down a career path in this exciting industry.

For more specific help on hiring and recruiting, reach out to an ArboRisk team member to discuss our Thrive Hiring & Recruiting Package or the Leadership Development Package today.

Employment Practices Liability Insurance

by Katie Petersen | May 23, 2022 | Risk Management | 0 comments

Employment Practices Liability Insurance

Written by Mick Kelly

One of the first concerns that a new business owner has is how to deal with the hiring, firing and discipline of employees as well as wondering what the consequences your employees’ actions may have for your business.

Not only is the risk of being sued by an employee very real and on the rise, the risk of being sued because of the actions of an employee, outside of the scope of their work, is also very real.

This is where Employee Practices Liability Insurance or EPLI comes in!

What is EPLI

EPLI helps protect businesses against claims and lawsuits arising from improper or unfair acts brought by employees. EPLI includes coverage for the cost of defending a case in court and the damages from a judgement or settlement that may arise from a lawsuit. Legal costs are typically covered in the event of a win or loss.

EPLI covers against claims from:

full-time and part-time employees
temporary and seasonal employees
applicants for employment
independent contractors

Examples of lawsuits that can be brought against an employer include:

Unfair discipline
Wrongful termination
Unfair demotion or negligent evaluation
Breach of employment contract
Failure to employ or promote
Sexual harassment
Discrimination – age, race, sex, religion, etc
Libel, slander, defamation of character
Invasion of privacy
And more

Most small business owners think such claims will never come against them since the have the best employees or their employees just “aren’t like that” – but the claim may come from the actions of someone else within your organization or from a mistake from the employer. Even a “heat of the moment” dismissal may result in an ex-employee seeking damages for wrongful termination.

EPLI is typically a claims made policy – meaning you must have it at the time of the incident in order to have coverage.

How much does EPLI cost?

A rough rule of thumb is EPLI costs between $25 – $40 per employee but pricing does vary per carrier

EPLI Premiums, are typically based on the these factors:

Type Of Business
Number of Employees
Coverage Limits
Deductible
Past EPLI claims history

Many carriers will offer EPLI as an add on to the business liability policy but in the incidences where they don’t, EPLI policies can be purchased as stand alone policies.

How much coverage should you carry?

This question varies from business to business. Most small business’s don’t have the thousands of dollars that it would cost to defend an EPLI case and a way to offset that is to pay a monthly premium for the EPLI coverage.

It should be noted that most EPLI policies have a deductible and that the cost of the monthly premium plus the deductible along with the likelihood of a claim should all be factored in before deciding to purchase the policy.

A company with a well run HR department may feel more comfortable forgoing the coverage in the knowledge that all the correct steps are being taken in regards to discipline, termination, hiring, etc. however, even a highly skilled HR department doesn’t mean you’re immune from lawsuits.

What EPLI doesn’t cover

EPLI exclusions include:

Criminality or violations of state/federal laws – EPLI will not cover you against a criminal act or if you are in violation of state or federal laws. It may cover you up until the point you proven guilty but not beyond that.
Punitive damages
Worker’s compensation claims
Contractual liability or breach of contract

EPLI with Third Party coverage

This is an add on to EPLI coverage. While EPLI covers you against employee lawsuits, Third Party coverage covers you against the actions of your employees towards others such as customers or clients. These lawsuits are typically discrimination or sexual harassment in nature.

In a labor market where it’s become very difficult to hire and a lot of business’s are hiring “a body” to get by, this coverage can be helpful. While all businesses want to vet their employees to the highest standard and only hire people of the highest moral quality, it’s not always possible to be certain of either and EPLI coverage with Third Party coverage can be a way of mitigating that risk.

That being said, Third Party EPLI claims for smaller businesses are far more common in the food and accommodation and retail services than they are in contractor fields. The additional 15 – 20% cost associated with it should be weighed up against the likelihood of employee interaction with clients and customers.

For more information on EPLI, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management New Heights package!

Working with Insurance Adjusters

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Working with Insurance Adjusters

Written by Tom Dunn

You sustain a loss to your property, and report it to the insurance company. Shortly after, you are notified who the adjuster is that will be handling your claim. For most people, the fear of the unknown now sets in. What will it be like working with this person to resolve the claim and get your business back to normal? Will I be treated fairly and receive just compensation or will they find ways to deny coverage or try to pay as little as possible?

I know first-hand of this experience, having worked for a national TPA adjusting firm as well as as a staff adjuster for a self-insured risk pool that insured municipalities and school districts. From my perspective as an adjuster, I always tried to put the person who sustained the loss at ease during the first interaction and assure them they would be treated fairly.

It is probably a normal reaction to have some anxiety, but there is no reason for this relationship to turn out poorly. If you go into the relationship with the mindset that this person can be my advocate instead of adversary and follow some simple steps, you can walk away from the experience feeling like you have been made whole.

This article will focus on property losses, but there are many different types of claims that adjusters handle. The same basic principles for working with an adjuster apply for any type of claim. It probably helps to know what the role of the adjuster is to help know how the process will work. Here is a summary of the process an adjuster may take:

Determine the cause of loss
Determine if there is coverage available under the applicable policies
Determine the extent of property damage
Determine if the damage should be repaired, replaced and what to do with the damaged property
Determine the amount of payment

Seems straightforward, but here are some steps to make the process smoother:

Report the claim to the insurance company promptly. Your agent can help with reporting a claim.
Know your policy. You don’t have to be an expert or know all of the ins and outs of the policy, but you definitely should become familiar with what is generally covered and your obligations. Pay attention to the “Duties after a Loss and Proof of Loss Requirements”.
Ask questions of your adjuster. A good adjuster will explain your duties and obligations and bring up any coverage concerns, but don’t be afraid to ask for explanations if you have questions. As with all strong relationships, communication is the key. Be polite and responsive in all interactions, but it is ok to be firm.
Take steps to mitigate any further damage while the claim is being investigated. This is required in the policy language. See #2
Collect documentation of your damage. Take a complete inventory of damaged and undamaged property (pre-loss inventory is even better). Take photos and videos of everything that was damaged as soon as possible after the loss and identify what it is showing.
Insurance companies may recommend a contractor or you may be able to choose your own to complete repair work. Make sure they are present when the adjuster comes to inspect the damaged property and have experience working with insurance adjusters.
Keep a claims journal documenting your interactions with the insurance company adjuster (dates, times, subject matter). The adjuster is doing the same with you and this can help resolve any discrepancies.
Remember the appraisal clause in the policy language. Hopefully, if you have followed steps 1-7, this won’t be necessary, but if you don’t feel you are receiving just compensation for your loss, you have the right to invoke the appraisal clause and seek a non-biased opinion of a third party. See #2

Dealing with the aftermath of a claim can be a stressful situation. Being prepared, detailed, proactive and advocating for yourself goes a long way in obtaining a successful resolution. A good insurance agent knows when and how to become involved, without being a hindrance to the claims process. Utilize that relationship, when needed.

For additional help in working with insurance adjusters, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management New Heights package!

Lastly, check out this article on maximizing compensation from vehicle accidents in October 2021 TCI Magazine.

Why Auto Insurance Rates are Increasing

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Why Auto Insurance Rates are Increasing

Written by Tom Dunn

Commercial auto rates have been increasing at an alarming rate across all industries and the tree care industry is no exception.

This article is meant to shed some light on the causes behind the rate spike and point you to a few resources to help you minimize your cost.

Distracted Driving and Accidents

As with any insurance coverage the rate that you pay is directly connected to the likelihood of a claim happening. Therefore, when there are more accidents, the cost of the insurance goes up.

For many tree care owners, their truck is also their mobile office and just like working in a traditional office, there are plenty of distractions that can take your focus away from what you should be doing. The only difference is in a vehicle, the consequences of lack of focus are always more severe, leading to property damage, injuries and even death.

Distracted driving is the largest cause of motor vehicle accidents and comes in many forms. Some of the most common are:

Cell phone use: Talking or texting. Even the hands free options can distract.
Multi-tasking like eating or drinking while driving
Adjusting controls in the vehicle
Checking GPS navigation system
Talking with another passenger
Looking at something outside car

Inflation

Technology has led to many advances in vehicles that are supposed to make them safer, however that technology comes at an increased cost for consumers when it comes time to repair a damaged vehicle, especially delicate electronics.

Same principle at work with individuals who are injured in a motor vehicle accident. Hospital services have gone up dramatically in cost.

More Drivers

Yes, there were less drivers on the road during the peak of Covid, however, the number of licensed drivers has grown overall to over 230 million across the country.

Inexperienced Drivers

Unfortunately, there are enough experienced drivers with the skills and expertise to drive commercial vehicles to replace the drivers who are retiring. In general, inexperienced drivers have more accidents.

Infrastructure

Old, crumbling roads and bridges increase the wear and tear on vehicles, making accidents more likely. Roads not designed to handle the volume of traffic we see today which leads to more congestion and accidents.

Supply Chain Disruptions

Covid did lead to a decrease in the need for vehicle parts for a short period, however as driving has returned to more normal levels, there has been an increased demand. Sadly, the supply of available parts has not caught up.

Extreme Weather

It doesn’t have to be considered an extreme weather event to lead to an accident, and you don’t have to be a meteorologist to see the increase in extreme weather events. Company vehicles can be damaged just sitting in a parking lot, however, Tree Care companies are often on the road as first responders in extreme weather events thereby increasing their chance of being involved in an accident during a storm.

Huge court verdicts

Also known as “Nuclear Judgements,” these are defined as a verdict in favor of a plaintiff with a damage award over $10M, but can be used for any verdict larger than anyone expected.

One of the insurers that ArboRisk works with recently had a $6M verdict handed down for a motor vehicle accident involving a tree care company. An interesting look behind the reasons for nuclear verdicts shows that how a company addresses safety definitely matters:

Juries have shown that if a company overlooks workplace safety, doesn’t provide adequate safety training for employees and has a history of repeat violations, they will be punished for their lack of training oversight.
Failure to utilize available technology (driver monitoring systems, forward collision systems, back-up cameras, voice control-Bluetooth) can also lead to punishment from a jury.

While it may seem like there is no hope for your business auto rates, know that you are not helpless in controlling your own rates. Companies that take driver and fleet safety seriously position themselves to receive the lowest rates possible. We actually recently wrote an article to give you four ways you can lower your rates.

Additionally, every ArboRisk client has access to our extensive driver and fleet management resources on our Thrive website. Not an ArboRisk client? No problem! Enroll in our Thrive Safety Package to get one-on-one help lowering your risk of an auto accident within your company.