02.08.2004

Aerial lifts have highest risk

Accidents involving rented items such as aerial lifts, forklifts and trailers pose the greatest risks for users and were associated with the highest numbers of fatalities, injuries and damages in the equipment rental industry, according to the findings of a St. Paul Travelers, the St Paul Minnesota based insurer in a study announced last week..

The study--Renting Dangerously: Injuries, fatalities and losses in the equipment rental industry--spotlights the types of rental equipment and operations that pose the greatest risks to both users and rental companies alike. The study examined more than 3,500 incidents involving rental equipment occurring between 1996-2002.

Among the study's key findings:

•Accidents associated with rental aerial lifts were the leading cause of fatalities. Five of the 18 rental-equipment related fatalities were attributed to personnel lifts. Of those fatalities, four involved power line contact.

•Personnel lifts also ranked No. 1 in severity, meaning lift accidents accounted for the highest costs of rental equipment insurance claims. Lifts have held this top severity ranking for the last 20 years.

•Forklifts were second being responsible for four fatalities, with operator error being a factor in all four of these incidents. Bystanders accounted for three of the four forklift fatalities.

•Trailers ranked No. 1 in total number of rental equipment claims and No. 3 in total claim costs. These incidents were most often attributed to errors made by consumers and rental employees while attaching the trailers to vehicles or transporting loads not properly secured. Many trailers became disconnected from their towing vehicles, causing damage to other vehicles and injuring bystanders.

•Cranes were included for the first time in this study and were well down the risk charts representing less than one percent of the total cost of all claims compared to 20 percent for lifts and coming 18th out of 20 in the severity ranking making cranes one of the safest pieces of equipment according to this study.

The majority of accidents were caused by operator error, in spite of this the cost to rental companies and insurers was still very high. St Pauls includes a number of tips to help reduce the risk and the cost of such claims. They include:

– Rental companies should provide adequate training and safety
information (verbally and in writing) for the equipment.
There are many options for acquiring and distributing this
information. It can for example come from the manufacturer or tradeassociation

– Rental companies should inquire about third-party use and
reiterate that the equipment should only be used for the
operation it was designed for and that operators must
adhere to all safety requirements (e.g., fall protection for
lifts and hoists).

– Rental companies should inspect and service all rental equipment
before renting to users. Adequate records of maintenance,
recalls and any modifications made according to manufacturer
recommendations should be kept on file.

– Equipment should not be modified without the
manufacturer’s consent.

– Only qualified personnel should conduct maintenance
and repairs.

– Rental company inventories should include new equipment
with the latest industry safeguards. Old, out-of-date equipment
(even if it is in working order) should be replaced. It takes
a lot of rental income to make up for one significant loss.

– Rental dealers should ensure that manufacturer’s of the
products they rent have adequate insurance coverage.

In addition, how soon the claim is reported after the occurrence, how well the evidence is preserved and how the individual business operations performed will influence the total cost of the claim

The full study can be viewed on www.stpaultravelers.com