Millwright Contractors Insurance Policy Information
Millwright Contractors Insurance. Millwrights install, maintain, move, and repair large machinery, conveyor systems, and other industrial equipment in fixed locations such as airports or factories. They may also dismantle outdated systems into component parts for salvage or disposal.
Millwrights receive the parts to be installed, interpret blueprints and technical instructions for assembling, overhauling, or dismantling the machinery, constructing or supervising the construction of the system being installed, and perform testing and adjusting prior to releasing the system to the customer.
Typically, millwrights work closely with the manufacturer of the machinery and with the repair staff at the customer's plant or operation.
The work of a millwright contractor is ever-changing. You are constantly maintaining and dismantling all sorts of machines in all types of settings. You have to lift, move, and transport equipment. You add new and innovative tools and techniques to your approach.
In other words, there's a lot involved with millwright contracting, and as such, the risks that are associated with this line of work are many.
In order to protect livelihood, your clients, your employees, and your personal assets, having the right type of millwright contractors insurance coverage is essential. Why is insurance so important? What types of coverage do these professionals need?
Find the answers to these questions below so you can put the right protections in place.
Millwright contractors insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked millwright contractors insurance questions:
- What Is Millwright Contractors Insurance?
- How Much Does Millwright Contractors Insurance Cost?
- Why Do Millwrights Need Insurance?
- What Type Of Insurance Do Millwright Contractors Need?
- What Does Millwright Contractors Insurance Cover & Pay For?
What Is Millwright Contractors Insurance?
Millwright contractors insurance is a type of insurance policy that provides coverage for millwright contractors. Millwrights are skilled tradespeople who specialize in installing, repairing, and maintaining industrial machinery and equipment. This type of insurance protects millwrights against financial loss due to a variety of risks and perils, such as property damage, liability for injuries to third parties, and lost wages due to injury.
Typically, millwrights work closely with the manufacturer of the machinery and with the repair staff at the customer's plant or operation.
Millwright contractors insurance policies typically include coverage for workers' compensation, liability insurance, and property insurance, and may also include coverage for tools and equipment.
How Much Does Millwright Contractors Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small millwright contractors ranges from $67 to $89 per month based on location, size, payroll, sales and experience.
Why Do Millwrights Need Insurance?
As a millwright contractor, the very nature of your work is quite demanding. Whether you work in power plants, factories, or any other industrial environment, you are responsible for dismantling, moving, assembling, and installing all types of heavy equipment.
It's a line of work that requires extreme precision and there isn't any room for mistakes. Unfortunately, however, despite your best efforts, mistakes can happen.
It's physically demanding and mentally taxing work, which means that mishaps are bound to occur; you could potentially damage a piece of machinery while assembling it or misplace a equipment while it's in-transit, for example. Even if you are lucky enough to never make a mistake, incidents can arise that are completely out of your control.
A client could file a lawsuit against you, stating that you failed to complete the job, for example. Even if the claim isn't true, you will have to contend with legalities. A piece of machinery could malfunction and injury an employee; or, your equipment could be stolen while it's in-transit.
These are just some of the examples of issues that could arise, and all of them are costly.
Having to pay for medical expenses, repairs, and legal fees can be beyond exorbitant and having to pay out of your own pocket could put you in financial ruin; but, if you have the right type of millwright contractors insurance protection in place, you can avoid severe monetary losses and keep your business in good standing, even when trouble does strike.
Why? - Because instead of having to pay for legal fees, damages, and other expenses that are related to the risks that are associated with your business yourself, your insurance provider will cover the costs.
What Type Of Insurance Do Millwright Contractors Need?
There are several types of millwright contractors insurance coverage that should be in place to protect their business; however, the specific policies and the amount of coverage that is needed will vary from professional to professional.
The specific services you offer, the clients that you work with, and the location where you operate your business out of are just some of the factors that will determine what type of coverage you need. With that said, however, there are certain policies that all millwright contractors will need, including:
- Commercial General Liability - This type of insurance provides you with protection against third-party personal injury and property damage claims. For instance, if you damaged a client's equipment and he or she filed a lawsuit, your insurance company would help to cover the cost of legal defense fees, repair or replacement fees, and any additional damages that may be awarded.
- Contractor's Equipment - Also known as commercial equipment insurance, this type of coverage protects the equipment and machinery that you use to perform your job from physical damages that isn't protected under a commercial property insurance policy, such as forklifts, dollies, and backhoes. You invest a lot in your equipment and the cost of repairing or replacing it can be extensive, but with contractor's equipment insurance, you can avoid being hit with huge expenses if your machinery is damaged.
- Workers' Compensation - If you employ a staff of any size, you'll need to carry workers comp insurance, too. This type of coverage covers the cost of any injuries or illnesses that employees sustain while they are on-the-job; for example, if a piece of equipment falls on an employee while she is working, workers' comp will pay for the necessary medical care, lost wages, and even legal expenses, should she file a lawsuit against you.
These are a few of the insurance policies that millwrights should carry.
Millwright's Risks & Exposures
Premises liability exposure at the contractor's premises is usually limited due to lack of public access. Job site, exposures are very high, as much of the work may have to be carried out during working hours while the customer's employees are on the premises.
The millwright must control access to the area and post signs about the dangers. Electrical voltage must be turned off during installation in order to reduce the risk of electrical burns or electrocution to others entering the area and turned back on after work stops, all while minimizing any disruption of electrical service to other businesses in the vicinity. Unprotected welding can result in bodily injury or set the property of others on fire.
Tools, power cords, and scrap all pose trip hazards even when not in use. If there is work at heights, falling tools, or materials may cause damage and injury if dropped from ladders, scaffolding, or cranes. Pressure-testing boilers, other pressure vessels, and piping present a potentially severe exposure. Any delay caused by the millwright could result in a claim for costly downtime for the customer.
Completed operations liability exposure can be severe. If a machine installed or repaired by the millwright malfunctions, the cost to investigate and litigate the resulting bodily injury and property damage claims could be very high. Not only can a malfunction cause injury to the customer's employees and property, resulting in downtime, but also the customer's products could be faulty due to improper calibration of machine tolerances.
The absence of an aggressive quality control program that documents full compliance with all construction, material, and design specifications may indicate a morale hazard and make it impossible to defend against serious claims. Any changes made by the engineers and carried through in the design must be noted prior to implementation. Hazards may increase in the absence of proper record keeping of work orders and change orders, as well as inspection and signed approval of finished work by the customer.
Environmental impairment liability exposures may arise from the dismantling and disposal of replaced equipment and the use, transportation, and disposal of fuels and related pollutants due to the potential for contaminating air, ground, or water supply. Old air conditioning equipment may contain PCBs. Proper written procedures and documentation of the transportation, disposal, and spill control process are important.
Professional liability exposures arise because millwrights are engineers or have engineers on staff who design machinery or interpret manufacturing blueprints. The exposure increases if the firm fails to conduct thorough background checks to verify employee's education and training, permit other workers to do tasks that only professionals should handle, or if error checking procedures are ignored or are inadequate. All design specifications must be followed and inspections regularly conducted. Documentation must be clear, with changes marked and authorizations signed by both the engineer and the customer.
Workers compensation exposure is extremely high. Falls from heights, crushing from falling objects, and burns from welding can occur on the job site. Back injuries, hernias, strains, and sprains may occur from loading or unloading machinery, setting up parts, or working in awkward positions. Electrical burns are common, and electrocution can occur from the use of high-voltage lines. Slips and falls, foreign objects in eyes, hearing impairment from noise, cuts or puncture wounds, and inhalation of fumes are common.
As the millwright must test any piece of machinery installed, all the hazards associated with manufacturing operations must be considered. If welding must be done in confined spaces, proper ventilation and fire protection are essential to prevent or reduce injury. Workers may encounter "friable" (easily crumbled) asbestos or lead dust in some repair and reinstallation operations. Procedures must be in place to identify and handle these safely. Work on pressurized vessels and process piping presents unique hazards with potentially severe consequences including explosion.
Property exposure at the contractor's premises is usually limited to those of an office and storage for supplies and vehicles. Ignition sources include electrical wiring, heating, and air conditioning systems.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All orders, billing, and disbursements must be handled as separate duties and annual external audits conducted. All items should be physically inventoried on a regular basis to prevent theft.
Inland marine exposures include accounts receivable if the millwright bills customers for services, computers (including diagnostic and engineering software), contractors' tools and equipment, including hoists and scaffolding, installation floater, and valuable papers and records for clients' and suppliers' information. While most work with a rigging contractor who hoists the equipment in place before the millwright handles the connections, setup, and testing, some millwrights handle the rigging themselves.
The millwright may rent, lease, or borrow equipment from others, or rent, lease or loan equipment to others, which presents additional exposure as the operator, may be unfamiliar with the operation of the leased or borrowed item. Hazards to machinery, tools, or building materials left at job sites and awaiting installation include theft, vandalism, damage from wind and weather, and damage by employees of other contractors.
Some construction supplies may be target items for theft by third parties or employees. There may be a bailee exposure while the millwright is installing a customer's equipment.
Business auto exposures are generally limited to transporting workers, equipment, and supplies to and from job sites. If vehicles are used to deliver the machinery, special modifications or built-in equipment such as lifts and hoists for large items may be awkward and require special handling and tie-down procedures. Drivers should be properly trained to prevent overturn and to navigate through high traffic areas.
Serious property damage or injury to employees of other contractors, passing pedestrians, or motorists can arise during loading and unloading equipment and materials. Long drives with oversized equipment may lead to driver fatigue and resulting accidents. For long-term projects away from home base, personal use of company vehicles poses a concern. Similarly, employees may use their own vehicles on company business for long periods, especially to transport crews to the jobsite.
All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
What Does Millwright Contractors Insurance Cover & Pay For?
Millwright contractors can be sued for various reasons, including but not limited to:
- Property damage: If a millwright contractor damages a client's property during a project, they may be sued for the cost of repairs or replacement. Insurance can help pay for these costs through the contractor's general liability insurance policy.
- Personal injury: If a worker or third party is injured while working on a millwright project, the contractor may be sued for medical expenses, lost wages, and other damages. Workers' compensation insurance can help pay for these costs, while general liability insurance can cover non-employee injuries.
- Breach of contract: If a millwright contractor fails to deliver a project as agreed upon in the contract, they may be sued for breach of contract. Professional liability insurance can help cover the costs of legal defense and damages if the contractor is found liable.
- Delayed completion: If a millwright contractor fails to complete a project on time, they may be sued for damages related to the delay. This could include lost revenue, additional labor costs, and other expenses. Professional liability insurance can help cover these costs.
- Defective work: If a millwright contractor's work is defective and causes damage or injury, they may be sued for the cost of repairs and any associated damages. Professional liability insurance can help pay for these costs.
Insurance can protect millwright contractors by covering the costs of legal defense, settlement or judgment amounts, and other related expenses. Different types of insurance policies, such as general liability, professional liability, and workers' compensation, can provide specific protections depending on the nature of the lawsuit. By having adequate insurance coverage, millwright contractors can mitigate the financial risks associated with lawsuits and focus on delivering quality work to their clients.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1796 Installation or Erection of Building Equipment, Not Elsewhere Classified
- NAICS CODE: 238290 Other Building Equipment Contractors
- Suggested Workers Compensation Code(s): 3724 Door - Installation - Overhead & Drivers, 9534 Mobile Crane and Hoisting Service Contractors - NOC - All Operations & Drivers
1796: Installation or Erection of Building Equipment, Not Elsewhere Classified
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 179: Miscellaneous Special Trade Contractors
1796 Installation or Erection of Building Equipment, Not Elsewhere Classified: Special trade contractors primarily engaged in the installation or erection of building equipment, not elsewhere classified, such as elevators, pneumatic tube systems, and dust collecting equipment. This industry also includes contractors primarily engaged in the installation or dismantling of machinery or other industrial equipment. Contractors primarily engaged in the construction of industrial incinerator, furnace, and oven structures are classified in Industry 1629.
- Conveyor system installation-contractors
- Dismantling of machinery and other industrial equipment-contractors
- Dumbwaiter installation-contractors
- Dust collecting equipment installation-contractors
- Elevator installation, conversions and repair-contractors
- Incinerator installation, small-contractors
- Installation of machinery and other industrial equipment-contractors
- Machine rigging-contractors
- Pneumatic tube system installation-contractors
- Power generating equipment installation-contractors
- Revolving door installation-contractors
- Vacuum cleaning systems, built-in-contractors
Millwright Contractors Insurance - The Bottom Line
To find out what other millwright contractors insurance policies you might need, and what limits you should consider - speak to an experienced business insurance broker.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
The construction industry is a high-risk industry that requires business insurance to protect against potential losses. There are several reasons why the construction industry needs business insurance:
Liability risks: Construction projects often involve working on other people's property, which can lead to potential liability risks if any damages or accidents occur. Liability insurance helps to protect against these risks by providing coverage for any legal fees or damages that may arise.
Property damage: Construction projects can also be at risk for property damage, whether it's the company's own equipment or tools, or the property being worked on. Commercial property insurance including inland marine helps to cover the cost of repairs or replacement of any damaged property.
Worker injuries: Construction is a physically demanding industry, and accidents and injuries are a common occurrence. Wrokers comp helps to cover the cost of medical treatment and lost wages for injured workers.
Financial losses: Construction projects can be disrupted by a variety of factors, such as weather, delays, or changes in scope. Business insurance helps to protect against financial losses that may occur as a result of these disruptions.
Overall, insurance is an essential component of the construction industry as it helps to protect against a range of potential risks and losses. Without it, companies in the construction industry would be vulnerable to financial ruin and may not be able to continue operating.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).