Insurance and Commercial Auto Insurance as we call it:
Commercial Insurance Coverage.
- Primary Auto Liability
insurance is required by State and often Federal regulations. Every carrier
must carry liability insurance on every rig even on leased units (Autos).
Liability insurance protects you when a third party is injured in an
accident. Owner-operators should ask when leasing onto a company who will
pay for their insurance - the company or from driver weekly settlements. A
suggestion is that they obtain proof of the Leasing company's Insurance.
Hoping to be notified if something goes wrong.
Physical Damage insurance is
coverage for your truck and trailer. Your premium is often based on a
percentage of the value of your equipment. This coverage is not required by
law but if you finance your vehicle the lien holder will require it. Some
Companies use the simpler Actual Cash value at the time of the loss.
(if you elect stated value and the value is less than the actual cash
value... You Lose!)
- Cargo Insurance covers
damage/loss to freight in transit. This coverage can have many exclusions
such as unattended vehicle, maximum theft limitations on target commodities
such as garments, cigarettes, liquor, wines, beer, electronics and many
- General Liability insurance
protects the business for any property damage or bodily injury that might
occur which does not involve an Auto. This includes accidents at your place
of business or caused by an employee on or off premises, including fire
damage to property you may be renting; advertising related and/or
- Non-Trucking Liability
insurance pays for an accident when the driver/truck is not under dispatch.
The coverage is sometimes referred to as deadhead coverage or bobtail
- Non-Owned Trailer Liability
coverage protects you from damage or injury caused by the trailer you are
pulling for someone else.
- Non-Owned Trailer Physical
Damage coverage insures the trailer you are pulling for someone else in the
event of loss. $20,000 is somewhat standard for trailers.
- Trailer-Interchange Liability
coverage protects a trailer you are pulling when there is an interchange
agreement in force. For example with a railroad or a steamship line.
- Terminal Coverage protects
freight located at specified terminals in the event of loss. Usually there
are time limitations related to this coverage. For example: 72 hours maximum
per specified load. If the goods are stored longer than the terminal time
you would most likely want to purchase Warehouse Legal coverage. This amount
of coverage is dependent on the total amount of goods
stored/docked/off-loaded at any one time.
- Warehouse Legal coverage
protects goods stored at specified locations in the event of loss. For
example as relates to theft, fire, sprinkler damage. This amount of coverage
is dependent on the total amount of goods stored at the location at any one
- Loggers Property damage, also
known as Loggers PD. is usually required for those that work in the Forests.
Simply stated, It eliminates the Care, Custody and Control exclusion to
property damage arising out of your operation in the forest. (Usually
underwritten by Lloyds. a Non-Admitted Insurance Syndicate and the first
Insurance Company in the world.).
- We represent Admitted
Insurance Companies, unless the Admitted Insurers will not accept the risk.
- Other unusual exposures:
Garage Liability and Garage Keepers Legal liability. Some firms do repair
work for others. These forms of insurance are to pick up the exposures for
the liability for the use of a non-owned automobile (Customer's automobile,
trailer, car or truck; for example). Garage Keepers Legal Liability covers
the specified perils (or Comprehensive Coverage) and Collision damage that
may happen to the customers Truck, Trailer or Automobile)
- Inland Marine Insurance.
For those items not designed primarily for use on public roads. (Forklifts,
Crawlers, Loaders, Excavators, Skidders etc). The coverage is usually
broader than Automobile Insurance provides. The major exclusions are wear
and tear, Inherent vice.
I hope you found this little
treatise of Insurance Buzz-0words of use.
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