Liga Asuransi – Dear readers, how are you? I hope your business is doing well.
Accidents can happen anytime. Minutes before I started writing this article, I just read from online news that an outdoor billboard on the main road in Bandung City, Indonesia, had fallen and hit cars and motorcycles and injured several people.
As a senior insurance broker, I want to discuss this risk so that all of us can avoid such risk from happening to us in the future.
If you are interested in this article, please share it with your friends, so they know as much as you do.
UNDERSTANDING THE BILLBOARD BUSINESS
Outdoor billboards, or advertising billboards, are sizeable outdoor advertising structures commonly used to display commercial messages to a large audience. These structures can be found along highways, buildings, public areas, and other high-traffic locations.
The need for outdoor billboards stems from the fact that they effectively reach a large audience with a targeted message. Outdoor billboards can promote products, services, events, and other commercial messages to potential customers likely to be interested in what is offered. They are especially effective at reaching people on the go, such as commuters or travelers.
Outdoor billboards can also provide the significant business potential for companies that use them as part of their marketing strategy.
THE RISKS OF OUTDOOR PROMOTION BILLBOARD
While outdoor promotion billboards can be an effective way to advertise products and services, there are several risks associated with their use. Some of the key risks include:
Weather Damage
Outdoor billboards are exposed to the elements, including rain, wind, and extreme temperatures. Over time, this exposure can cause damage to the billboard, such as fading, peeling, or even destruction. This can result in the need for costly repairs or replacement of the billboard.
Safety Hazards
Billboards are typically installed above ground level, creating safety hazards for workers during installation, maintenance, and removal. In addition, if the billboard is not properly secured, it can risk falling or collapsing, potentially injuring people or damaging property.
Regulatory Compliance: Depending on the location of the billboard, there may be local, state, or federal regulations that must be followed. These regulations can include billboard size, placement, and content restrictions. Failure to comply with these regulations can result in fines, legal disputes, or other consequences.
Environmental Impact
Some billboards can harm the environment, particularly if they are illuminated or use materials that are not biodegradable or recyclable. This can contribute to light pollution, waste, and other environmental issues.
SAFETY HAZARDS
To minimize these safety hazards, it’s important to follow proper safety protocols and procedures when working on outdoor billboards.
This can include using appropriate safety equipment, ensuring proper installation and maintenance, and avoiding work during inclement weather conditions. Employers should also provide adequate training to workers to ensure they know the potential hazards and how to minimize the risks.
There are several safety hazards associated with the promotion of outdoor billboards. Some of the key safety hazards include:
Heights
Outdoor billboards are often installed at a significant height above the ground, creating safety hazards for workers during installation, maintenance, and removal. Workers may need to climb ladders or use lifts to reach the billboard, which can increase the risk of falls and other accidents.
Electrical Hazards
Some billboards are illuminated using electricity, creating electrical hazards for workers. Workers may be at risk of electrocution if faulty or damaged electrical wiring or connections.
Structural Integrity
Billboards must be appropriately secured to ensure their structural integrity. If the billboard is not properly secured, it can risk falling or collapsing, potentially injuring workers or bystanders.
Traffic Hazards
Outdoor billboards are often installed near roads and highways, creating traffic hazards for workers. Workers may need to work close to moving vehicles, which can increase the risk of accidents.
Weather Hazards
Workers may be exposed to weather hazards such as extreme temperatures, high winds, and lightning strikes while working on outdoor billboards. These hazards can increase the risk of accidents and injuries.
THE CONSEQUENCES OF BILLBOARDS ACCIDENTS
The consequences can be severe and potentially catastrophic if a billboard falls and hits people or property. The consequences will depend on the size and weight of the billboard, the location where it falls, and the number of people or properties impacted.
If the billboard falls on people, it can result in severe injuries or even fatalities. The weight and size of the billboard can cause crush injuries, traumatic brain injuries, spinal cord injuries, and other types of severe injuries. If the billboard falls on a vehicle, it can result in a severe accident that can cause injuries or fatalities to occupants or pedestrians.
If the billboard falls on the property, it can cause significant damage to the property, including buildings, vehicles, and other structures. This damage can be expensive to repair and can result in disruptions to business operations or personal life.
In addition to physical harm and property damage, a billboard accident can also result in legal and financial consequences. The billboard owner may be liable for any injuries, damages, or other losses resulting from the accident. This can result in costly lawsuits, settlements, and other legal expenses.
ACCIDENT RECORDS CAUSED BY THE FALL OF BILLBOARDS
Several reported incidents of billboard collapses caused injuries and property damage. For example, in 2019, a billboard collapsed on a busy street in Istanbul, Turkey, killing one person and injuring several others. In 2018, a billboard fell onto a car in Mumbai, India, killing the driver and injuring a passenger. In 2015, a billboard collapsed in New York City, killing a man walking on the sidewalk.
These incidents highlight the potential risks of using promotional billboards and the importance of proper installation, maintenance, and safety precautions. Billboard owners and operators must take necessary safety measures to ensure that their billboards are secure and do not pose a risk of harm to people or property.
TYPE OF INSURANCE NEEDS FOR THE PROTECTION OF BILLBOARD
Several types of insurance can cover the risks associated with the fall of billboards that cause damage or injury to people. Here are some of the most common types of insurance coverage:
General Liability Insurance
This insurance coverage protects businesses from liability for injury or property damage caused by their operations or products. General liability insurance can cover damages and legal fees resulting from an accident caused by the fall of a billboard.
Property Insurance
Property insurance can cover damages to the billboard itself and any property damage caused by the fall of the billboard.
Workers’ Compensation Insurance
Workers’ compensation insurance can cover medical expenses, lost wages, and other related costs if a worker is injured while working on a billboard installation, maintenance, or removal.
It’s essential for businesses that operate promotional billboards to review their insurance policies carefully and ensure that they have adequate coverage to protect against the risks associated with billboard accidents. They may also want to consult with an insurance professional to determine the appropriate coverage levels and types of insurance for their specific needs.
THE COVERAGE OF GENERAL LIABILITY INSURANCE FOR BILLBOARD
General Liability Insurance is a type of insurance coverage that protects businesses from liability claims that arise due to bodily injury or property damage caused by their operations or products. For businesses that operate outdoor billboards, General Liability Insurance can cover accidents due to the billboard’s installation, maintenance, or removal.
Specifically, General Liability Insurance for outdoor billboards may cover the following:
Bodily injury
If someone is injured due to the fall of the billboard or while working on the billboard, General Liability Insurance can cover the medical expenses, lost wages, and other costs associated with the injury.
Property damage
If the billboard falls and damages someone’s property, such as a vehicle or a building, General Liability Insurance can cover the cost of repairs or replacement.
Legal expenses
If a liability claim is made against the business that operates the billboard, General Liability Insurance can cover the cost of legal fees and other related expenses.
It’s important to note that the specific coverage and limits of General Liability Insurance policies can vary depending on the insurer and the policy terms.
Businesses operating outdoor billboards should carefully review their insurance policies and consult with an insurance professional to ensure adequate coverage to protect against the risks associated with billboard accidents.
WHY DO OUTDOOR PROMOTION COMPANIES NEED AN INSURANCE BROKER?
Arranging insurance by contacting insurance companies directly or through agents is not recommended because it can lead to limited insurance coverage, uncompetitive premium costs, the use of less secure companies, and the absence of claim settlement assistance.
Outdoor billboard companies may benefit from using an insurance broker to arrange their insurance coverage for several reasons:
Expertise: Insurance brokers have specialized knowledge and expertise in the insurance industry. They can help outdoor billboard companies understand the different types of insurance coverage available and recommend the appropriate coverage and limits based on the company’s specific needs and risk profile.
Customization
Insurance brokers can work with outdoor billboard companies to customize insurance policies to meet their needs. They can negotiate with insurers on behalf of the company to ensure that the policy terms and pricing are favorable.
Timesaving
Insurance brokers can save outdoor billboard companies time by handling the insurance process from start to finish. This includes shopping for policies, comparing quotes, and managing the policy renewal process. This allows companies to focus on their core business activities and leave the insurance-related tasks to the experts.
Risk management
Insurance brokers can also help outdoor billboard companies with risk management. They can advise on ways to minimize the risks associated with billboard operations and ensure that the company has the appropriate safety procedures.
Using an insurance broker can help outdoor billboard companies save time, reduce risk, and ensure they have the appropriate insurance coverage to protect against potential liabilities.
One of the leading insurance brokers in Indonesia focusing on liability insurance is L&G Insurance Broker.
For all your insurance needs, please L&G now!
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24-HOUR L&G HOTLINE: 0811-8507-773 (CALL – WHATSAPP – SMS)
website: lngrisk.co.id
E-mail: customer.support@lngrisk.co.id
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