Top 10 Crane & Rigging Losses Recognizing & Avoiding The Risks Presented by NBIS Insurance & Risk Management Team: Michelle Lorenz – Manager, Litigation & Claims Cliff Shepherd – Supervisor, Claims Billy Smith – EVP, Risk Management Acknowledgement to Jim Wiethorn, PE of HAAG Engineering for the Accident Scene Photos & Re-enactments

OSHA’s Crane & Rigging Fatalities Not surprisingly, in 2001, OSHA determined that the construction industry had the 3rd highest fatality rate among all 9 major economic sectors. OSHA investigated 7,479 construction fatalities from 1991-2002 Average 623 fatalities per year on construction sites… over 50 people per month! Crane Related Fatalities on Construction Sites Represented 8% of construction site fatalities Nearly 600 crane related fatalities on construction sites 84% of crane related fatalities involved mobile cranes with lattice and telescopic booms, truck or crawler mounted cranes/derricks. Reason for OSHA’s recent re-writing of its crane & derrick standards Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities Using OSHA’S fatality investigations from 1997–2003, the study’s authors analyzed 125 Fatalities to assess: Proximate Cause of Accident Victim’s Occupation Work site’s End Use Function Construction Operation being Performed by the Crane Evaluation of Safety Program of Victims’ Employers Union vs. Non-union Type of Crane involved in the Fatal Event Number & Type of OSHA citations by proximate cause Training & Certification of Operators Experience of the Victim Presence of a Competent Person on Site Type of Rigging Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities Proximate Causes of OSHA Fatalities involving cranes & derricks during lifting operations. Failure of Boom/Cable Crane Tip Over Electrocution Struck by Load (other than failure of boom/cable) Falls Crushed During Assembly & Disassembly of Lattice Booms Struck by Cab/Counterweight What didn’t Cause any OSHA Fatalities: Two blocking Takeaway from this: Crane Manufacturers play a significant role in minimizing fatalities by developing safety devices Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – Causation Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities - The Victims Occupations of Fatality Victims: Crane Operator = 10% Rigger/Laborer = 54% Ironworker = 9% Other General occupations including carpenters, welders, masons, truck drivers, etc = 21% Considering the Proximate Cause of the Fatalities … The most commonly killed worker was always the Rigger/Laborer Ironworker fatalities were caused almost exclusively by being struck by the load Nearly ½ of crane operator fatalities occurred when cranes tipped over Skilled vs Unskilled Victims Fatalities to Ironworkers and Crane Operators were far less than unskilled workers Study doesn’t detail union vs non-union Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – The Victims Cause of Crane Fatality Crane Op Rigger-Laborer Iron-worker Other Un-known % Totals Struck by Load 19 9 10 2 32% Electrocution 25 6 1 27% Crushed during A/D 3 5 12% Boom/Cable Failure Crane Tip Over 11% Struck by counterweight 3% Falls 2% TOTAL by Occupation 12 67 11 27 8 % by Occupation 10% 54% 9% 21% 6% Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – The Crane Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – Type of Operations Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – Serious Citations Section 1926. Description of Serious or Willful Violations # 550 (a)(15) Operating proximate to power lines where electrical distribution & transmission are energized 41 21 (b)(2) Failure to instruct employees to recognize unsafe conditions 36 550 (b)(2) Crawler cranes failed to meet applicable design standards 21 550 (a)(19) Failure to keep employees clear of suspended loads & loads about to be lifted 18 550 (a)(1) Employer’s failure to comply with manufacturer’s specifications 17 Items in Red = Serious Citations Common in NBIS Data Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Crane & Rigging Fatalities – Conclusions As a result of this OSHA study, the authors concluded: Crane operators and riggers should be qualified & re-qualified every 3 years thereafter Crane safety training must be provided to specialty trade crafts before they are allowed to work around cranes during lifting operations. A “diligent” competent person should be in charge of all aspects of lifting (in accordance with as defined in 29CFR 1926.32f ) OSHA should improve its system of collecting information during fatality investigations WE AGREE! But, we also recognize that we have different data! Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

OSHA’s Fatality Data vs. NBIS Accident Data Sample Size of Data OSHA data only includes 125 crane accidents over 7 years NBIS data includes appx 500 crane accidents in 1 year alone Severity of Injury & Type of Damages NBIS analyzes all types of bodily injuries, not just fatalities NBIS includes property damage claims, not just bodily injury claims Type of Victim OSHA data may not properly characterize different types of Victims (i.e. Ironworker vs Rigger) No Signalmen Lumps together different “general occupations” Sophistication of Crane Operator & Crane Company NBIS data is exclusive to experienced crane & rigging companies & operators OSHA data includes C&R specialists but also generalists like GC, tree companies, etc Mobile Crane – Auto Motor Vehicle Accidents NBIS includes those often occurring accidents going to & from a jobsite Actual vs Potential Exposure NBIS analyzes not just actual catastrophic accidents but potential catastrophic damages from “minor” accidents Location of Accident NBIS data includes All Crane Related Accidents not just construction sites

OSHA Data vs NBIS Data - Similarities Overload Conditions are a frequent cause of Structural Failures to Boom & Crane Stability/Tipping Rigging Failures are very common Crane Stability Issues are very common Being Struck by Load is very common Common cause: Load dropping Common cause: Rigging Failure Assembly-Disassembly Accidents are very common Cause of both High Frequency of Accidents & High Exposure Damages When electrocutions do occur, the most common cause is similar: failure to maintain required clearance Lattice boom cranes are involved in more accidents than telescoping boom cranes

OSHA Data vs NBIS Data – Differences Common Causes unique to OSHA Data Often reflects inexperience of generalists involved in crane operations Examples: Structural Failure of Crane 12% of OSHA fatalities Improper Assembly & equipment damage Appx 10% OSHA fatalities Struck by Cab & Counterweights Electrocution is far more common in OSHA data 27% of OSHA Crane Related Fatalities Boom contact & cable contact are far more common in OSHA data Common Causes in NBIS Data Reflecting unique nature of lifts done by Crane Experts Often indicative of conditions outside the Crane Operators’ Control Wind Related Accidents significant with NBIS Only 1.6% of OSHA data Falls

What are the Top 10 NBIS Crane Accidents? Improper Rigging Ground Collapse High Wind Conditions Load Over Capacity Load Swings into People or Property Load or Crane Crushes or Pinches People Landed Load Not Properly Secured Tools & Supplies Dropped from Overhead Inadequate Number of Counterweights Crane – Auto Accidents

What are the Top 10 NBIS Crane Accidents? For each of these Top 10 Accidents: Examples of What Happened Some of the B30 Duties Issues Impacting the Defense of the Lawsuit What the NBIS Data is and isn’t Not a Top 10 frequency list Not a Top 10 severity list It is “common trends” we see in claims It includes a combination of most frequent, most exposure, most severe BI, most severe PD It is Intended to be a “What to Watch For” in your own Safety Programs

1. Improper Rigging - Examples Improper Rigging Causes Dropped Loads Load shifts or slips out of rigging Load Slices Rigging Straps Shock loads Examples of Improper Rigging: Frequent Accidents from Improper Use of Softeners Failure to Use Softeners Softeners slip Softeners are Inadequate Frequent Accidents from Improper Rigging Configuration Rigging Configuration not Proper for Load Load Capacity of Rigging Equipment not sufficient Failure to Use Manufacturer’s Lifting Lugs & Lifting Configurations Defective Straps not a common cause of accidents but common allegation

1. Improper Rigging – B30 Duties Crane Operator B30 – Not responsible for conditions not under his DIRECT CONTROL Ensuring load & rigging weights have been provided & calculating net capacity for all configurations Understanding BASIC load rigging procedures. But, Crane Operator & Oiler can’t get involved in rigging then claim no involvement in accident If concerns re dangers of lift, crane operator MUST shut down lift Document if Lift Director overrides Crane Operator’s Concerns Riggers & Lift Director Most often the cause of the accident Lift Director’s B30 Duties Load must be properly rigged & balanced Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director

2. Ground Collapse – Examples Often catastrophic outcome Crane Tips when outrigger sinks Load dropped Crane causes damages when it tips Crane’s Outrigger punctures underground utility Underground Water & sewage lines Gas line explosion

2. Ground Collapse – B30 Duties Crane Operator Duty to know what type of site conditions adversely affect crane operations & consulting with lift director Lift Director Ensure area for crane operations is adequately prepared Site Supervisor Ensure area for crane is adequately prepared Address poor soil conditions that may impact crane’s operations

3. High Wind Conditions – Examples Sail Effect on Load Wind Tunnel Effect not Assessed Structure under construction Structures surrounding lift Operating Too Close to Capacity in High Wind Locations Offloading at docks Wind Farms Tag lines Failure to use tag lines Improper # of tag lines Reliance exclusively on Tag Lines for huge loads or big winds Delay in Shutting Down Lift after Operator remarks on Wind Conditions

3. High Wind Conditions – B30 Duties Site Supervisor Address wind velocity, gusts & other weather conditions that impact crane’s operations Lift Director Ensure area properly prepared & addressing safety concerns raised by operator Crane Operator Using load charts to determine correct crane configuration to suit load, site & lift conditions Communicating adverse site conditions & factors re crane capacity to lift director Consider Manufacturer’s recommendations for securing the crane in storm warning exists Shut down lift if unsafe conditions

4. Load Over Crane Capacity – Examples Wrong Info programmed into LMI Wrong load weight provided by Customer Inadvertent error or transcription of numbers Liquid or other substance still in tank etc Improper # of Counterweights Too few of counterweights utilized No counterweights used on extremely light loads at long distances Often with very experienced operators Often day-end accidents

4. Load Over Crane Capacity – B30 Duties Crane Operator Use load charts to confirm correct crane configuration for load, site & lift conditions Ensuring load & rigging weights have been provided & calculating net capacity for all configurations Lift Director Load must be properly rigged & balanced Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director

5. Load Swinging into People & Property - Examples Often occurs Blind Lifts or Partial Blind Lifts Inexperienced or Inattentive Signalmen Hand signals or radio signals fail Operator’s Failure to Control Load Usually an allegation that load not moved smoothly Riggers’ Failure to Control Load Load swings during rigging Load swings when being landed Riggers push/pull load Taglines Insufficient or Improperly Used

5. Load Swinging into People & Property – B30 Duties Crane Operator Operating the crane’s functions – under normal operating conditions -- in a smooth & controlled manner Knowing standard & special signals Not engaging in activity to divert his attention Not responsible for conditions not under his DIRECT CONTROL Understanding BASIC load rigging procedures. If concerns re dangers of lift, crane operator MUST shut down lift Riggers & Lift Director Most often the cause of the accident Lift Director’s B30 Duties Load must be properly rigged & balanced Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director

6. Load/Crane Crush & Pinch Points - Examples Crane Injures People Crane’s Pinch points Outriggers Crane Cab (not common) Load Injures People Improperly secured load shifts Riggers use hands to control or move load

6. Load/Crane Crush & Pinch Points – B30 Duties Crane Operator Observing outriggers or using signalperson to observed during extension, setting & retraction Not responsible for conditions not under his DIRECT CONTROL Riggers & Lift Director often the cause Lift Director’s B30 Duties Restrict unauthorized access to crane’s work area Load must be properly rigged & balanced Appointing competent signalperson Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel & those involved in crane operations understand duties & associated hazards Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director Ensuring crane operations are coordinated with other jobsite activities Ensuring area for crane operations is adequately prepared, including traffic control to restrit unauthorized access

7. Landed Load Not Properly Secured - Examples Tilt Walls improperly braced/welded Roofing Trusses domino Joists not properly secured Why it Went Wrong Often trying to minimize hourly cost of crane or when job is behind schedule

7. Landed Load Not Properly Secured – B30 Duties Almost Never Crane Operator’s Responsibility Not responsible for conditions not under his DIRECT CONTROL Understanding BASIC load rigging procedures. If concerns re dangers of lift, crane operator MUST shut down lift Riggers & Lift Director Riggers or other contractors are most often the cause of the accident Lift Director’s B30 Duties Load must be properly rigged & balanced Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director Ensuring crane operations are coordinated with other jobsite activities Ensuring area for crane operations is adequately prepared, including traffic control to restrict unauthorized access

8. Equipment Dropped from Overhead - Examples Materials, Equipment & Tools Knocked off Structure Often occurs during Assembly/Disassembly Materials & Equipment drop from within load Bundled steel Hardware contained within a load Small Error … Big Injury With increasing velocity from multiple story fall, even small piece of steel, wood etc can have effect of speeding bullet Seemingly innocuous incident can have catastrophic consequences Traumatic Brain Injuries Paralysis Amputations Blindness Death

8. Equipment Dropped from Overhead – B30 Duties Almost Never Crane Operator’s Responsibility Not responsible for conditions not under his DIRECT CONTROL Understanding BASIC load rigging procedures Riggers or other contractors are most often the cause of the accident Lift Director Load must be properly rigged & balanced Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Ensure personnel involved in crane operations understand duties & hazards Ensure preparation of area for crane operations Ensure traffic control in place to restrict unauthorized access Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director Ensuring crane operations are coordinated with other jobsite activities Ensuring area for crane operations is adequately prepared, including traffic control to restrict unauthorized access

9. Falls - Examples Examples Falls off Structure Falls off Crane Very common lawsuits Lack of Fall Protection & Differing Fall Protection Required by Industry Falls off Crane Typically occurs during Assembly/Disassembly

9. Falls – B30 Duties Almost Never Crane Operator’s Responsibility Not responsible for conditions not under his DIRECT CONTROL If concerns re dangers of LIFT, does crane operator have duty to shut down lift when others aren’t wearing fall protection? Signalmen & Riggers Often the Cause of their own Fall Lift Director Stop unsafe crane operations Address/overrule operator’s concerns re unsafe conditions Ensure rigging is performed by designated personnel Site Supervisor Ensure rigging crew is supervised by a qualified person Ensure that a qualified person is designated as the lift director Ensuring crane operations are coordinated with other jobsite activities

10. Crane – Auto Motor Vehicle Accidents Common Crane MVAs Crane Protruding into Roadway Catastrophic Injuries Possible Outrigger Pads Falling Off Crane Minor incident with catastrophic potential Tire Blowouts Minor incident but difficult to defend Rear End Collisions Multiple claimants & High Exposure Habit of following same distance as our cars Difficult to Defend Liability Collisions with Parked/Stopped Cars

Common Litigation Issues Frequent Allegations that crane operator didn’t Move load smoothly Respond immediately to signals Stop Lift when Unsafe Conditions Present Fulfill Responsibilities outside the “Hook to the Wheels” How to Defend Frequent Allegations Crane operator’s experience, training, but especially course & practice and prior lifts on the accident site for this customer Immediate Scene Inspection & Witness Interviews Common Difficulties with Defense Load in the blind so no crane company witnesses Crane Operator & Oiler can’t argue no breach of B30 Duty re rigging configurations if the crane operator and oiler are involved in rigging Inexperienced Riggers or Signalmen Difficult to defend if operator noticed problems but didn’t shut down job or raise issues with lift directors Different Outcomes for Same Accidents in Different States Contributory negligence vs comparative fault Joint & several liability Borrowed Servant Anti-indemnity Statutes Vertical Immunity & Horizontal Immunity

Litigation Issues – Rental Ticket & Contracts Terms & Conditions Identify who responsible for rigging B30 & other industry standards governing Indicate rigging equipment inspected before lift by lift director &/or riggers Ground & Site Conditions Adequate One signature during course of multi-day job binds all days Document if crane operator is directed by Lift Director to proceed with lift after safety concerns raised Ticket MUST be signed before lift NEVER agree to duties in a Master Contract different from B30 & OSHA Breach of Contract Claims have NO INSURANCE COVERAGE

Litigation Issues – Safety Meetings & Dispatch DOCUMENT DOCUMENT DOCUMENT Avoid “he said – she said” Note Mobilization & demobilization areas, especially if moved Reflect info & hazards acknowledged by customer Document walking site with customer marking mob/demob, travel & outrigger locations Document Weight Provided by Customer

Litigation Issues – Preserve the Evidence Immediate Scene Inspection You should observe, document & possibly photograph Rigging configuration & rigging equipment conditions Site configuration including possible Wind Tunnel effects Wind & weather conditions Before crane is moved, document all positions of crane Location of Crane in Relation to the Place where Accident/Injury Occurred Experts Hired by Your Defense Counsel should Inspect Scene for witness marks, download LMI data Immediate Witness Interviews Critical especially if Crane Operating in Blind Critical to Preserve the Evidence Rigging Straps & Lift Instructions Crane Conditions, LMI, Repair & Maintenance Records SPOLIATION OF EVIDENCE Defense Jury instructed that they may “presume” missing evidence would have been harmful to your case Difficult to get persuasive re-enactments in evidence for trial if we don’t document conditions as they existed at time of accident