Truck Liability
The truck fleet operator has several alternatives in structuring their insurance coverage and payment plans. But first we need to segment the various fleet sizes, to determine what makes the most sense for that operation.
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 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 you might guess from the name, this is very broad coverage for risks other than automobile but still related to your business. Coverage for injuries or property damage losses that occur while on your premises, using your products or services, or stemming from a breach of contract are among the most common types of risk this coverage is meant to address. In these policies is where you would also include many coverage options specific to your type of business like pollution, underground, or professional.
The basic policy is usually sufficient for standard transportation operations. If you have fuel tanks on your premises then it’s probably a good idea to include some pollution coverage. Custom house operations would be wise to have some professional liability coverage. While policy limits start at $300,000, the usual limits set each occurrence at $1 Million and a policy aggregate of $2 Million, with higher limits available if desired or required.
Companies we write with:
- Carolina Casualty Insurance
- Chartis Insurance Company
- CNA Insurance Companies
- Fireman's Fund Insurance
- Hartford Casualty Insurance
- National Interstate Insurance
- Northfield Insurance Company
- Northland Insurance Company
- Progressive Casualty Insurance
- Sagamore Insurance Company
- Travelers Casualty Insurance
- Zurich American Insurance
