frequently asked questions

Question: May I state on the application that I transport “General Commodities”?

Answer: No. Insurance policies for the companies which write Cargo exclude or have special endorsements regarding certain commodities, so they require you to be specific.

There are several commodities referred to in the insurance policy as “targeted.” These include liquor, beer, wine, copper, finished clothing, electronics, etc. If you are hauling a “targeted” commodity, there will be a special endorsement on your insurance policy outlining coverage for loss due to theft.



Question: Why do I have to insure a truck that is not running?

Answer: When an insurance company makes a filing for you (Form BMC91X), the filing states the insurance company is responsible for every piece of equipment you own and/or operate. If you have a truck that isn’t running, you cannot endorse it off the policy unless you can produce a Bill of Sale or a copy of an agreement terminating the Lease Agreement.



Question: If my authority is issued for a common carrier, contract carrier and broker, is this a problem?

Answer: Yes, a major problem. Most insurance companies do not want to provide coverage if you are running a brokerage operation as part of your business because they have additional exposure.



Question: May I get my 22 year old brother-in-law approved as a driver since he has a good driving record?

Answer: Probably not. Most insurance companies will only approve drivers between the ages of 25 and 65. If a driver is 65, we must provide a copy of your DOT Long Form Physical and an MVR. All drivers must have at least two years’ experience in a piece of equipment similar to what they will be driving.



Question: If my company is now insured to haul plastic, lumber and machine parts, can I accept a one-time load of batteries?

Answer: Absolutely not in a majority of cases. You need to fully understand your exposure if you engage in the hauling of hazardous materials.





Question: I have 5 trucks and 7 trailers. Why do I have to have liability insurance on the two extra trailers?

Answer: If you have a trailer parked somewhere and someone climbs up, falls off and is injured, there will be a liability claim. If you have no insurance coverage under your policy, you will have to pay individually.





Question: If a loss occurs while one of my drivers has left a truck unattended for a short period of time, is insurance coverage uncertain?

Answer: Possibly. Some cargo insurers impose an unattended trailer warranty on certain types of commodities. Such a warranty stipulates the conditions under which a truck driver hauling those commodities can leave them unattended.

 

 


we want to be your insurance provider for:

  • Excess Liability

    Umbrella

    General Liability

    Commercial Auto Liability

    Bobtail Liability

    Physical Damage

    Motor Truck Cargo

    Trailer Interchange

    Terminal Coverage