Group I and II fleets

The alternatives generally involve what payment plans are available and which make the most sense for the operation. Generally, these fleet policies are set up on a monthly reporting form. Those are usually based on Gross Revenue, Mileage or Schedule of Vehicles.

Each of these options has its' own advantages and disadvantages.

Gross Revenues policy, for instance, will have a premium rate (say 3%) which is applied monthly to the revenues generated for the month. This is a simple method for the operator, it allows for optimal cash flow as the premium will follow the income, and is advantageous when the fleet is growing and adding units as there is no immediate increase in the premium.

A disadvantage to the receipts policy is that if the fleet increases their rates during the year then those increases effectively increase their premium as well. Other disadvantages exist and depend upon the nature of the operations.

Mileage based policies are good if the mileage being driven can be easily verified and are fairly stable. If the miles driven fluctuate widely, especially if the miles will increase during the term, then this type policy can wind up being more expensive. The key to this type of policy is to make sure the estimated mileage being used as a basis allows for a sufficient cushion to grow a bit; that is, it not be too low. Again, this type allows for growth in the number of units without an immediate increase in the premium.

Scheduled Vehicles reporting is really good for the smaller fleet, say less than 20, where there are only a small amount of vehicle changes. This monthly report of vehicles establishes a monthly premium per unit. It eliminates any mileage or gross revenue reporting and eliminates the potential for premium increases due to higher than expected mileage or revenue. Conversely, it also removes the possibility of adding units without increasing the immediate premium cost.

In each of the three cases above, the fleet operator has a financial incentive to manage their operations better and reduce the number and cost of claims.

Group III and IV fleets

Are usually more interested in some form of risk sharing based upon their claims results. These fleet operations can Reduce the Cost of Insurance by participating in the claims process. That can be done be either placing a liability deductible or accepting a Self Insurance Retention (SIR); which brings the fleet operator directly into the claims process. Finally, the larger fleet operator may even consider creating, or renting, what's known as a Captive Insurance Company. In this case, the fleet actually manages its' own insurance company and that company gains or loses on the premium cost depending upon their results. Other benefits can accrue to the Captive option.

• Physical Damage insurance is coverage for your truck and trailer. Your premium is based on the value of your equipment. Usually a percentage of the value. This coverage is not required by law but if you finance your vehicle the lienholder will require it. It is important to insure your vehicle for the real value. Not over or under value the vehicle as the insurance company will only pay market value at the time of the loss.
• Primary Auto Liability insurance is required by federal regulations. Every carrier must carry liability insurance on every rig even on leased units. 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.
• General Liability insurance protects the business for any property damage or bodily injury that might occur which does not involve a truck. Typical examples of this would include the slip and fall exposure at your place of business, advertising related exposures, and/or contractual exposures you may get involved in.
• 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 liability.
• Non-Owned Trailer Liability coverage protects 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 a interchange agreement is in force. For example with a steamship line.
• 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, liquor, electronics and a whole host of others. It is very important to read this policy closely in the event you think you may be covered for something and you are not.
• 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. Again very important to read your policy. 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 time.

Once you have determined what insurance coverages you desire or need then you can rate shop. It is essential to work with an insurance brokerage, like Asian Commercial Insurance Center, who understands the trucking industry so that you purchase the right insurance with the best company at the lowest price.

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, ACIC spends time with you in determining your optimal method of loss prevention.

Finally, most LTL and P&D operations involve a warehouse, terminal, or storage facility that requires attention to general liability, terminal coverage, and varies options of business property. Once again, we are ready, willing, and quite able to address and protect your interests to your unique needs.

Warehouse Liability

Warehouse Liability insurance protects the freight a company assigns storage charges for.  Warehouse receipts specifying the terms of the storage contract must be utilized. Warehouse coverage is one of the most complex coverages you can purchase. If this policy is not written correctly, it can not only cost you thousands of dollars, or have uncovered losses. Although most warehousing operations think they need warehousemans legal, you may actually need a bailee policy form.  Asian Commercial Insurance Center can discuss your operations specific needs, address what you are doing to limit your exposures, and create the best program for you.

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, ACIC 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.

Truckers, hauling for hire with interstate travel, are required to apply for a permit with the Federal Highway Administration (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.