First, truckers, tractors, and trailers are secured as commercial equipment and do not automatically allow coverage extensions of a personal car policy. Electronics, charging equipment, charging security equipment, rental refunds and personal belongings are secured differently and are not covered automatically.
Automatic Business Liability is fairly straightforward. If a truck driver has ICC authority, a deposit for proof of financial responsibility will be given to the feds. Submission is what keeps a truck driver in compliance with the requirements of the federal authority (ICC). The uninsured / underinsured motorist is also helpful for a trucker who has been injured by an uninsured vehicle. Medical payments are useful when someone is injured in your truck.
Freight insurance covers the liability of truckers for the other goods they transport. There are 3 different forms or policies: Dangerous and Stolen Calls that are tight in coverage, Broad Form that adds some coverage to the base form and All Risk Coverage that offers coverage for all causes, unless excluded from language in politics. Regardless of the shape, There are certain covers that a trucker would need. Truckers must purchase a cargo cover equal to the highest value of the goods they are transporting. Some policies have a co-insurance clause that may limit coverage limits if you are carrying a value charge in excess of the insured limit on your policy.
1) A refrigerated carrier would need a Reefer malfunction or a Reefer Repair Kit to cover damage from freezing or spoilage immediately if its reefer unit breaks. Remember to find out if the policy covers an error in the setting of the temperature control device. Most reefer policies cover only in case of unit breakdown or malfunction.
2) A flatbed carrier should have a moisture blanket or backing in case its load is damaged by rain or snow. Most policies have a backing on the fabric that limits coverage to loads that are properly covered. Sometimes a tarpaulin can be damaged or blow loose due to the truck’s fault resulting in damage to the load that cannot be covered unless moisture cover is added. Cover for tarpaulins, chains and binders is also desired to replace stolen or damaged binding equipment that is not otherwise covered.
3) A dry van carrier is recommended to ensure that the displacement of a load is covered. In this type of operation, larger and longer trailers are used and the load safety equipment may fail. These instances are rare but they happen.
Each trucker should have earned freight coverage based on their shipping policy. This coverage pays for lost revenue when it is unable to deliver its charge due to a covered loss. Disposal and cleaning coverage for a loss must be at least $ 10,000.
Physical Damage coverage is usually to repair the tractor and trailer in case of a covered loss. This coverage is insured for a stated value. The value set for the equipment is the responsibility of the truckers. The insurance company will pay a loss based on equipment of similar quality. This means market value. So the trucker should make sure that their values are accurate. Remember that you will pay a deductible for each unit, unless your policy has a combined deductible support. Even towing is only for a covered loss not deactivation or redistribution. Many policies pay for losses and include towing and storage limits on the stated amount of the vehicle, so if you have a loss and a large towing or storage bill, the policy limit may not cover all of your losses. Trailer cover can and should be purchased in addition to physical damage. Make sure your towing policy covers disability and road service.
Electronics such as cell phones, televisions, and radios are generally not covered unless you purchase additional coverage. Your personal property is not even covered, except specifically in the policy, but may be covered by the insurance of your homeowners. The refund of the lease is also not automatically covered.
I have been assuring truckers for several years and I know that the emotional attachment to their trucks can be very strong, but insurance companies see them as a used tool to generate revenue. So, the older they are and the more miles they have, the less money they are worth. Even improvement issues come into play. Tractors run many more miles than cars and have a longer life. The average tractor travels between 115,000-135,000 miles per year. Some insurance companies take this into consideration when replacing an engine or suspension part after a wreck. If the life of the part is expected to be 500,000 miles and you have a wreck at 250,000 miles some insurance companies will pay only half of the replacement value of the part because half of the parts provided for life is has been used. If an agent doesn’t know how their insurance company handles this first, there can be a hell of a payoff.
General Liability is for exposure to incidental liability that is not covered by commercial vehicle policy. This is good coverage for car carriers who can drive vehicles to a location after they have been unloaded from a trailer. Also a truck driver who uses his own forklift to load and unload loads.
Workers ’compensation is necessary for the injuries of truckers or their employees. Occupational accident is a low cost alternative with certain advantages and disadvantages of coverage. It is always best to see a Truck Insurance Specialist to explain all these covers and get advice on particular types of truck risks.
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