This post was originally published August 31, 2011 and updated on June 22, 2020.
NYS Workers Comp Rate for Code 5160 Elevator Erection or Repair Guide
Description: Code 5160 includes the erection of elevators or escalators including the installation of all electrical apparatus and wiring associated with the operation of it at the site. This code includes the service or repair of elevators and escalators as long as the repair is away from the shop. The repair work at the site may also be included in code 5160 even though it is only electrical work.
Materials Used: construction tools for installation or repair, electrical repair tools.
Pricing: Solid companies with a good loss history can obtain better than average pricing on NYS Workers Compensation Rates.
SIC CODE: 3534 Elevators & Moving Stairways
NAICS CODE: 333921 Elevator and Moving Stairway Manufacturing
Suggested ISO General Liability Code: 52581
Suggested Workers Compensation Code: 3042
Description of operations
Elevator manufacturers produce freight and passenger elevators. They may also produce escalators, power-operated dumbwaiters, moving sidewalks, and other assorted conveyor systems. While elevator components are built in a manufacturing facility, they are actually assembled on the building site. Component parts include a steel-framed elevator box or car, wire rope or cable for lowering and lifting the box, electronic and computer components to control the opening and closing of doors and the ascent and descent, and a motor that hoists the actual load. The elevator box is generally finished with decorative or functional paneling and flooring. The suspended ceiling hides the lighting fixtures. The girders and other framing elements into which the elevator is installed must support the load and withstand the vibration of its operation. Most elevators use a pulley system and counterweights installed in a separate shaft to reduce the weight that must be supported by the motor. Component parts may be manufactured in different locations or different countries. Elevators must meet the safety standards of the American National Standards Institute and the American Society of Mechanical Engineers and are subject to frequent state inspection and certification.
Property exposures consist of offices, plant, and warehouse for finished units and yard for storage of raw materials. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and explosions from the build-up of dust from the cutting and sanding operations. The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate disposal procedures. Lubricants, solvents, or degreasers may be flammable and must be adequately separated and stored away from other operations. Additional exposures include electroplating, welding, soldering, plastics, and spray-painting. Spray-painting operations should be conducted in spray booths with explosion-proof wiring. The use of dip tanks instead of spray booths may require special attention. Welding should be done away from combustibles. Some materials may be attractive to theft. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Business income and extra expense exposures can be high when a lengthy amount of time is required to restore operations.
Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels, and other apparatus. A lengthy breakdown of production machinery could result in severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty and theft. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), contractors’ equipment for forklifts and other heavy machinery including cranes used in the installation, goods in transit, installation floater, and valuable papers and records for customers’ and suppliers’ information. The primary causes of loss are fire, theft, overturn, collision, and water damage. Items left at job sites may be susceptible to theft and vandalism.
Premises liability exposure is limited unless customers are allowed on-premises to evaluate progress on custom orders or the manufacturer conducts tours. Visitors may be injured by slips, trips, or falls. The storage of materials in the open could pose an attractive nuisance. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Dust, fire or explosion, fumes, and noise may affect neighboring properties. Off-premises exposures are extensive if the applicant installs or services units. Passersby and employees of other contractors can be injured by falling objects, trip hazards, and falling into an unprotected opening in an elevator shaft under construction. Because welding and soldering take place during installation, controls must be in place to prevent fire damage to the elevator and surrounding areas.
Products liability exposure is significant due to the potential for bodily injury or property damage should an elevator fail. An improperly designed or installed elevator can fall or stop between floors, trapping passengers. Doors should not open between floors or in the event of a fire. Should an elevator ever fall or swing loose, the shaft, cables, and wiring can be severely damaged. It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring of components, and documentation of sources down to each individual part. Losses may be caused by poor workmanship, faulty design, faulty installation, or hidden damage during storage (such as rust) or during shipping (such as unseen breakage of a part). The life span of an elevator may span several decades. Older elevators made before improved safety features were introduced may still be in use.
Environmental impairment exposure can be significant due to possible contamination of ground, air, and water from the chemicals and paints used in processing and lubricants and solvents used to service machinery. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Automobile exposure may be high if the manufacturer picks up raw materials or delivers pre-assembled elevator components to job sites. Transporting of the elevator boxes or wire cable could result in bodily injury or property damage losses if the load should shift or become unsecured during transport, resulting in collision or overturn. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Workers compensation exposure may be extensive. Injuries from production machinery are common, as are burns, cuts, puncture wounds, slips, trips, falls, back injuries from lifting during production, delivery, or installation, eye injuries from flying debris, hearing loss from noise, and repetitive motion losses. Amputations can occur from working with machinery. Workstations should be ergonomically designed. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Eye, skin, and respiratory irritants can result from spray-painting, coating, and finishing, or welding. Workers should be aware of the toxic nature of any chemical and should be made fully aware of the need to watch for early signs and symptoms of problems. Drivers of forklifts and vehicles may be injured in accidents. If the manufacturer installs or services elevators, workers can fall into shafts or be injured during testing.
Minimum recommended coverage:
Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Contractors’ Equipment, Goods in Transit, Installation Floater, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Nonownership Auto Liability, Workers Compensation
To find out more about NYS Workers Comp Rate for Class Code 5160, give our insurance experts a call at (212) 947-4298.