Truck Liability
This is usually the most costly portion of any trucking company's insurance package. Protecting you from damage or injuries to other people as a result of truck accidents this coverage is also mandated by the State and Federal agencies and a form of proof is required to be sent to them.
Coverage is generally rated, and many time supplied to you, on a scheduled vehicle basis. This means that if the vehicle is not on the schedule then there is no coverage given. With only a few vehicles this is not normally a problem. The problem becomes more significant when there is a large fleet and/or many vehicle changes during the policy year. Care must be exercised and excellent communications established between your broker and yourself.
For larger fleets and company's requiring broader forms the policy can be issued on an any auto basis where no vehicle schedule changes are needed. This type policy insures you for your use of owned, non-owned, hired vehicles, subcontracted vehicles, even for the use of private passenger type vehicles. These policies can be written on a gross revenue or mileage premium rating method. In most cases selecting these options properly simplifies and can reduce the overall cost. It is important to understand the consequences of selecting a method, however, as a rise in your prices will increase your insurance premium even though your mileage may not change, if you are under the gross revenue program. As always, proper evaluation with your insurance broker will uncover the best alternative for you.
Various policy endorsements are available to extend alternative coverages to the auto liability. Pollution liability, as relates to the use of vehicles, is a form that should be considered always. Various deductibles are available to allow you to absorb some of your losses and reduce your overall cost. Interstate truckers will need the MCS90, the BMC91x, and the appropriate State form endorsements which extend coverage to the regulatory agencies. For a discussion on proper State and Federal requirements please see LICENSING elsewhere in these pages.
Policy limits, generally, for operations with trucks over 10,000 gross vehicle weight have a required limit of $750,000. This limit is set by the FHWA on interstate travel and, generally, matched by the various States.
General Liability
As the name implies this coverage pertains to very broad coverage other than automobile. Protection for injuries or property damage sustained while on your premises, using your products or services, or because of a breach of contract are some of the more customary types of risk this coverage is intended for. This policy can also include many options specific for your type of business (ie: pollution; environmental; underground; professional).
For standard transportation business operations the basic policy is usually sufficient coverage. If your operations include fuel tanks on your premises then it is wise to include a limited form of pollution coverage. For freight forwarders or custom house operations a form of professional liability coverage may be appropriate.
Significant policy conditions are contained within this policy that must be reviewed with your insurance broker to make sure there are no gaps in protecting your operations.
Policy limits run the gambit from $300,000 on up; however, the usual policy limit sets each occurrence at $1mm and a policy aggregate of $2mm. Higher limits are available as necessary for your particular need.
Motor Truck Cargo
The transporter of freight, and commodities, assumes responsibility for the cargo he has taken control of. The amount of that responsibility SHOULD be clearly established and understood by both the shipper and the transporter before the shipment is moved. This is usually done by contract, by bill of lading disclosure, or by published tariffs. Unfortunately, this level of detail is often overlooked by both parties.
Motor Truck Cargo insurance protects the transporter for his responsibility in the event of damaged or lost freight. The policy is purchased with a maximum load limit per vehicle. Under-insuring the load can prove catastrophic to you in the event of a claim. Make sure you understand the concept of co-insurance.
This insurance policy, without question, requires careful thought and evaluation prior to purchasing. In addition, you need to be constantly evaluating the nature of your freight to make sure the coverage meets the demands.
The Motor Truck Cargo policy can be, and usually is, tailored to meet your operations and exposure. Significant exclusions, or guaranty's of compliance by you, create many situations where there might be no coverage. A good insurance broker will ask you pertinent questions that properly address this concern. The Motor Tuck Cargo policy can also contain provisions to insure the cargo when it is in your terminal or warehouse. This exposure results when the freight can not be delivered the same day or is consolidated with other shipments. The coverage exists so long as there is no separate charge made for storage or warehousing.
Similar to Motor Truck Cargo is the Warehouseman's legal Liability insurance policy which protects you for the freight you charge storage charges for. You need to utilize a warehouse receipt, similar to a bill of lading, for the storage which specifies the terms of your storage contract.
Bonds & Workers Compensation
Bonds, for fuel taxes and motor carrier authority, are frequently required by trucking firms. Royal Insurance Group Services can place your bond needs quickly. Custom bonds, performance bonds, and other bonding demands are readily available.
Commercial General Liability and Property Coverages round off the complete business owners insurance protection. In this area, Royal Insurance Group Services understands the right questions to ask making sure the coverages are appropriate. In some cases very detailed coverage additions are required.
Pollution Liability & Hazardous Materials insurance is also available through Royal Insurance Group Services. Royal Insurance Group Services works closely with the insurance company underwriters in this area to make sure proper coverage is provided and not more coverage than is needed
Workers Compensation
If you employ workers, then it is mandated by the Government that you maintain a policy of workers compensation in force for your employees. This insurance protects you against your liability to your workers for their injuries sustained while on the job.
A social requirement, this insurance policy actually protects the employee and his/her ability to create future earnings to support themselves and their family.
An adjunct to workers compensation, designed for the independent trucker, is the Occupational and Accident Injury policy. This policy provides coverage for the independent who does not have the protection of workers compensation. Offering medical insurance, life insurance, and disability protection, while operating equipment, the OCC/ACC policy provides peace of mind for the independent trucker.
Transportation Operations Insurance
Royal Insurance Group Services is a full line brokerage offering all of the insurance products you need to properly protect the assets of your business, meet the regulatory requirements, and safeguard our communities with the financial security of rated and admitted insurance companies.
LTL & PICK-UP/DELIVERY OPERATIONS
If your operations involve LTL or P&D work, then you have a unique set of needs that needs to be addressed in evaluating, and protecting, the risks in your business. Royal Insurance Group Services Services understands and can help tailor your risk management options.
Specifically, the selection of drivers in your business becomes more important. These personnel deal with city congestion, time constraint, and loading/unloading that the long haul driver will not experience. In many cases, personality traits, along with a driving record review, are important considerations prior to getting to behind the wheel of a P&D route. Proper training is essential!
In addition, vehicle safeguards become an issue for you. Motor Truck Cargo insurance policies must allow for the vehicle to be left unattended while packages are being delivered. To accommodate that greater degree of risk, without taking a massive price hike, Royal Insurance Group Services spends time with you in determining your optimal method of loss prevention.
Finally, most P&D, and LTL, operations involve a warehouse, terminal, or storage facility that requires attention to general liability, terminal coverage, and varies options of business property. Once again, Royal Insurance Group Services is ready, willing, and quite able to address and protect your interests to your unique needs.
INTERMODAL TRUCKING OPERATIONS:
Truckers hauling ocean containers or rail freight have their own set of unique requirements from the insurance industry. Comprehensive auto liability on an any auto basis is frequently mandated by the steamship lines. Trailer interchange and Motor Truck Cargo also become issues from the intermodal carrier. In the major metropolitan areas hijackings and cargo theft need to be properly addressed and the extensive use of owner operator independent contractors become a legal issue with respect to both the workers compensation and IRS payroll tax obligations.
Finally, this class of business must have a knowledgeable and responsive insurance brokerage to handle to slew of insurance certificates that plague the intermodal carrier.
Fortunately for you, Royal Insurance Group Services is just that insurance brokerage. We routinely issue hundreds of certificates to the steamship lines and our years of working with the equipment control personnel at those companies takes that hassle out of our hands. In addition, we have a multitude of options to help you structure your coverage that way you want to run your business. Whether all vehicles are insured under one fleet policy, or if owner operators purchase their own insurance individually, we deliver the results at the most competitive rates.
LICENSING:
Truckers, public livery, and freight forwarders all have some form of governmental licensing requirements. This short description gives just a basic guideline. For proper licensing please contact the appropriate agency or you may contact the staff at Royal Insurance Group Services who can assist you.
Truckers, hauling for hire with interstate travel, are required to apply for a permit with the Federal Highway Administratiion (FHWA, formerly the ICC). In doing so, you will also need the information on the interstate registration of your vehicles (IFTA, IRP).
Truckers, hauling for hire with intrastate travel, are required to apply for a permit with their respective State. Each state has its' own unique criteria, however, most states have adopted the Federal guidelines as respect to insurance issues. The states are required only to monitor the safety and insurance aspects of the trucking business; not the rates. Household good movers rates, however, are still regulated
Obviously, for truckers doing both interstate and intrastate shipments, a state and federal permit would be needed.
Public livery operators (taxi,limousine and bus) are regulated in the same fashion as truckers above. They are treated differently, however, and are under more scrutiny than their trucking counterparts. They have higher requirements for auto liability than the truckers do.
Freight Forwarders (NVOCC,Custom House Brokers, forwarders) have a requirement to obtain a freight forwarder permit from the FHWA if they are moving freight interstate or internationally. Various bonds may be required depending on what activities are being performed
