The Golden Gate Bridge officially opened to traffic on May 28, 1937, making it a historic feat of innovation and engineering. As the longest and tallest suspension bridge in the world at that time, the iconic structure opened a new world of construction possibilities. Innovation never thrives in a vacuum, though. Chief Engineer Joseph Strauss quickly learned that big ideas come with big challenges and big risks. As a result, the Golden Gate Bridge sparked the creation ofnovel solutions in many industries, including insurance.
The magnitude of the Golden Gate Bridge project required insurance coverage for a multitude of risks. Rather than obtain dozens of policies, each insuring only one narrow aspect, the project managers secured a single comprehensive policy to cover everything from workers to equipment to loss of use. When it was introduced, this policy was called “All Risk” because it covered everything that wasn’t specifically named as an exclusion. Today, we call these policies “Open Perils” to cover a number of potential risks.
New Insurance for a New Era
The massive building endeavors of the early twentieth century affected almost every industry in America. From impossibly long bridges to impossibly high buildings, the livelihoods of millions of people were dependent in some way on construction. Large companies, small businesses, and average households had a lot riding on the economic impact of groundbreaking projects.
Construction, especially at this scale, was always risky. In the case of the Golden Gate Bridge, the engineers and planners had to account for weather events, unpredictable water, equipment loss, worker accidents, and material shortages. One all-encompassing insurance policy provided full coverage at a single price and allowed for clear safety protocols and contingencies to be adopted.
Had the project required multiple policies for every detail of the project, the cost of insurance would have been astronomical. But it also would have meant many redundant, or even counter-productive, safety measures required by different carriers.
The unique All Risk policy was designed to cover a multitude of losses. A bit of a misnomer, All Risk policies had some exclusions. However, the coverage was very robust, covering almost every possible issue that might arise with the project.
Today, Open Perils is an insurance term that operates much like the industrial era All Risk policy. The only policy exclusions are specifically named, and everything else is covered. Most people see the terms “Open Perils” and “Named Perils” when purchasing homeowners insurance. On a standard policy, the home itself is often covered for Open Perils, while the owner’s personal property is covered for 16 Named Perils. In a premium policy, Open Perils coverage can apply to both the house and the personal property.
Insurance Comes with an Expectation of Responsibility
When the Golden Gate Bridge All Risk policy was issued, it didn’t come without any restrictions. In order to protect the financial interests of the insurance carriers as much as the investors, multiple safety measures had to be implemented to secure the policy. For example, safety nets were placed under the bridgework to prevent workers from falling into the cold water far below. Work also had to be paused to wait for storms to pass and fogs to lift.
Despite the best efforts to maintain safety, the project still grappled with several accidents and setbacks. A cargo boat damaged a trestle, scaffolding collapsed, workers fell, and the underwater blasts caused instability high above. Insurance allowed the project to recover quickly from losses so it could continue moving forward.
Ultimately, the Golden Gate Bridge was able to open to traffic earlier than expected and under the projected budget. With new insurance solutions tailored to be responsive to real-world, high-risk applications, investors became more interested in large scale projects. American ingenuity was taking off, resulting in many of the city skylines and iconic landmarks we recognize today.
Insurance Policies that Encourage Innovation
While construction practices and equipment have come a long way since the 1930s when it comes to safety, there will always be risks. Insurance policies are still designed to protect the financial interests of those who are covered. But preventative measures continue to be the best insurance for everyone. If you are a small business owner or an independent contractor, make sure you and your employees adhere to current safety standards. In the unfortunate circumstances that something does go wrong, you need to be able to tell your insurance agent that everyone acted in a safe manner and used every piece of equipment correctly.
If you’re wondering what more your business could be doing to ensure worker safety and adequate insurance coverage, contact us to explore your options. At Smyrl Insurance, we have been assisting small businesses for 70 years, using insurance to educate, nurture, and empower our clients to protect their employees and their bottom line. We may be able to suggest training programs or protocol certifications that qualify your business for insurance discounts. We also take time to fully understand your operations so that we can recommend policies that cover the actual needs of your business. We serve clients for business, workers compensation, and other personal and commercial insurance in Hatfield, Lansdale, Souderton, Harleysville and throughout the region in Montgomery County and Bucks County, Pennsylvania.
