By definition, a third-party logistics provider is an entity that arranges shipment on behalf of its clients, in addition to managing transportation and advising them on related issues. This describes a handful of firms that operate within the logistics landscape, including consolidators, brokers and freight forwarders. With the industry evolving rapidly in the recent past, these companies are now facing new liability risks in providing supply chain management services.
4PL Agreements
Also known as lead logistics providers, 4PL companies have become quite common in the last 5 years. This can be traced to the benefits they provide to their 3PL clients, such as an extensive network of warehouses and more resources. On the flip side, outsourcing with such a firm comes at the steep price of facing more risks.
While a solid contract can take care of some threats in this area, the majority of a firm’s liability risk will inevitably remain. For instance, a 3PL company could be held liable for a damaged item that changed hands several times while in transit, their own adherence to protocol notwithstanding. Even if this is covered under their policy, having solid loss control procedures in place can make a huge difference.
Legal Coverage
As more shippers chose to hand over their warehouse management duties to 3PL companies, it was only a matter of time before the latter was expected to assume more liability. Even with an ironclad contract, a negligence claim arising from this area can have disastrous consequences for such a firm. Legal fees aside, there’s often the cost of dealing with issues not covered under the law. To make matters worse, the probability of facing such a nightmare isn’t as low as one might assume — a third-party logistics firm can be found negligent both as a result of their actions and from a contractual standpoint as well.
Food Safety
Driven by the ever-escalating need to uphold safety, regulatory bodies now require everyone who deals with food products to invest in better tracking capabilities. In particular, warehouse operators now have to trace the origins of all products within their premises, and the destinations as well. This isn’t always easy, especially when dealing with complicated networks that extend beyond international borders. As such, it’s not uncommon for firms to find themselves being held liable due to unexplained gaps in coverage.
Dated Goods
The advent of tighter regulations, coupled with the rising need for brands to protect their products, has forced logistics service providers to take on the responsibility of managing products by their expiry date. When this passes, it isn’t always clear whether this automatically declares the goods to be damaged. This is a grey area that often divides opinion, but what’s indisputable is the fact that 3PLs can be held for losses that may arise thereof.
Recalls
Product recalls cost around $10M on average. While exercising caution can minimize the risk of facing such a huge penalty, this hasn’t stopped anyone from looking for scapegoats. In an attempt to mitigate risk on their part, manufacturers are always looking to spread the blame to their partners, including 3PLs. These companies have been left with no option but to buy product recall coverage, in spite of its steep cost.
Other risks that need to be taken care of include:
-Political risks: This is the case where a firm faces negative consequences due to the actions (or inaction) of a government. Coverage has to include the firm’s interests within the country, plus the damages that could result from politically-fueled violence.
-Trade disruption: This covers damages resulting from the delayed or suspended arrival of shipments due to a disruption in transit.
-Rejection: This covers the event where items are rejected by a governmental body.
While 3PL insurance still remains to be a crucial risk-management tool, it shouldn’t be viewed as a comprehensive solution for all threats. Because not all insurers understand the landscape, many policies simply can’t keep up with the changing landscape, more so when it comes to addressing emerging risks. 3PL companies would thus be better off creating a number of safeguards, some of which might include:
-Encouraging openness: A culture that encourages transparency makes it easier to correct errors and identify suitable solutions for anything that threatens to disrupt the flow of operations.
-Quantifying value at risk: Companies need to understand the extent to which they can be held liable at any particular point of failure.
-Lobbying: Firms within this niche should consider joining hands to press for the modernization of current laws and/or the creation of new ones altogether, keeping in mind the need to account for the interconnected nature of risk.
Above all is the need to review one’s coverage to make sure it covers emerging threats, which can be easily taken care of by partnering with an experienced insurance agent.
Here are some of the best-known truck types and a short definition of each one:
Tow trucks
Modern tow trucks are vehicles that feature any type of hoisting mechanism or winch device that can be used to remove stuck vehicles from ditches, crash sites, hillsides, snow banks, or virtually any place that does not allow freedom of movement. Tow trucks are also used to transport crashed or disabled vehicles from an accident scene or the point where they broke down. Typical examples include tow trucks that work during winter months to rescue vehicles stranded in snow and ice.
Buses
The words “bus” and “buses” have many definitions, but for the purpose of trucking, the word “buses” is simply the plural form of “bus,” which refers to any of many types of motor vehicles whose primary purpose is to transport human passengers from one point to another. In many cases, buses carry passengers along routes that are fixed according to schedule and direction. School buses, tour buses, and commuter buses are common examples.
Straight trucks
On a straight truck, the cab (where the driver sits) and the trailer (where the cargo is) are not able to be separated. As opposed to a tractor-trailer truck, the straight truck is a single “body-and-cab” unit, and are usually about half the size of a typical tractor-trailer vehicle. In their most common configurations, straight trucks have just two or three axles and no articulation.
Drive-away
Trucks used to transport other vehicles and sometimes other trucks. Drive-away trucking involves hauling cars to dealerships, trucks to trucking companies or drivers, and sometimes refers to the truck used to deliver heavy-duty construction equipment.
Box trucks
Box trucks are similar in many ways to vans but feature different designs and purposes. Also known as box vans, cube vans, and cube trucks, these versatile trucks usually have cube-shaped areas for carrying cargo and include a standard chassis cab. The most common setup is for the box truck’s cabin to be completely separated from the cargo space. However, there are some box trucks where the cargo area is connected to the cabin by either a door or window.
The key difference between box trucks and their cousin, the cargo van, is design. Vans feature a single body that houses the cargo area and driver while a box truck has separate spaces for driver and cargo, even when the two spaces are connected in some way.
Power only
Power only trucking is a term that has a variety of meanings but usually refers to the tractor portion only, not a trailer. On job boards for truckers, the person who lists a position as “power only” needs nothing more than a tractor unit. In other words, just the “power” portion of the arrangement. Power only truck drivers hire out their ability to transport trailers of various types. For customers who want to move a trailer full of goods, or just an empty one, a power-only driver is the one who will be hired to do the job.
In general, the word “truck” is typically used to mean a vehicle to moves cargo of some kind and is powered by a motor. The main differences include characteristics like power, vehicle design, fuel, overall size and number of wheels. In fact, the origin of the word “truck” dates back to terms used to describe iron wheels that were shaped like hoops and used on wooden supply carts.
It’s also important to remember that there are dozens of different kinds of trucks and trucking tasks. The above list contains the most common terms. Power only, box trucks, straight trucks, tow trucks, buses, and drive-aways make up a large percentage of all trucks on the road today.
There is no single insurance policy that covers all types of risks, liabilities, accidents, damages, and injuries. You have to obtain a policy specific to the risks you want to cover. Do not assume that a commercial general liability insurance policy will cover all risks you might come across in the course of your business operations. For example, this type of insurance policy does not cover liability associated with a business vehicle. If a customer slips in your store and suffers injury, the general liability insurance will cover the claim but if a customer’s car is damaged while in your custody, it does not cover the claim. To get coverage for such specific claims not covered under the general liability policy, you need garage keepers insurance coverage.
What Is Garage Keepers Insurance?
To understand garage keepers insurance, first, you have to know about the garage liability insurance.
Garage Liability Insurance
This policy is designed for auto focused businesses that need general liability protection mainly for covering auto business liability. It covers claims arising out of accidents during the garage business operations. It covers both bodily injury and property damage claims. Third party injuries are covered under it. This policy will pay for the medical bills of a customer who suffered a slip and fall injury at your business place. Property damages caused by the business owner’s equipment are covered. It provides coverage when the customer’s injury is caused by the employee’s dishonesty. A customer’s vehicle damaged because of a product sold or manufactured by the shop is covered under it. This umbrella policy covers many such claims but it does not cover the property and tools of the policyholder. It is restricted to the garage area only.
It may seem that everything is already covered under the general garage liability insurance policy. However, the devil is in the detail. With any insurance policy, you have to pay attention to the claims, risks, and damages that are not covered. In this case, it excludes coverage of property in the policyholder’s custody, control or care. The customer’s vehicle stored at your place for storage or repair is not covered. If your employee takes a customer’s vehicle on a test drive and damages it, then it is not covered. It does not cover physical damage to your customer’s car while it is left for repair, storage or service with you. It is because of these exclusions that you need the garage keepers insurance coverage.
Garage Keepers Insurance
This insurance policy covers damage to the vehicle left in the custody, control or care of the shop. It is an essential coverage for small businesses operating in the auto service sector. It is suitable for auto repair shops, auto body shops, carwash hubs, auto maintenance companies, vehicle detailing, towing companies, service stations, emission testing centers, vehicle interior decoration shops, auto glass installers, vehicle painting, and other auto service businesses. You need this coverage to protect yourself for damages to your customer’s vehicle during repairing, servicing, attending or parking. It provides coverage for extreme weather, theft, vandalism, and fire while the vehicle is at your business place. This policy is generally sold along with the garage liability insurance but it is still a separate insurance coverage. There are some exclusions under it. For example, it does not cover faulty parts or workmanship. It excludes insufficient warranties and customer’s contents stored in the vehicle. You can add additional options like an endorsement with this policy to get coverage for the customer’s property. It is up to you if you are satisfied with the basic policy or would like to add additional riders to cover more risks, claims, and liabilities.
Garage Keepers Insurance Cost
It varies from one business to another. There are many factors that affect how much a policyholder has to pay for the garage keepers insurance policy. The type of your business, coverage inclusions and exclusions, additional riders added to the insurance, types of vehicles under your care, number of employees, their driving records, the location of your shop, onsite security, deductibles, payout limits, and other factors determine the amount you have to pay toward this insurance policy. If you are looking for a comprehensive and collision coverage for a small auto service business, you have to pay about $800-$2000 a year based on the risks you want to cover. You can reduce your premium amount by opting for a higher deductible and lower payout. In the same way, the premium amount will increase if you go for the higher payout and lower deductible.
Garage Keepers Insurance Symbols
Numeric symbols are used in the garage and dealers insurance policies to indicate the type of vehicles for which the coverage is provided. The garage keepers insurance is related to two symbols. The symbol 30 is the main one which covers the garage keepers insurance. It provides coverage for the customer’s vehicle left in the custody, care or control of the insurance policyholder. This policy is available to dealers and other auto service providers who take responsibility of their customer’s vehicle for the storage, repair or service. The symbol 21 designated for Any Auto covers liability and medical bills. It offers coverage for any vehicle the insurance holder comes in contact with. When it comes to specific damage coverage, it is the symbol 30 designated for the garage keepers insurance that takes precedence.
Where to Get Garage Keepers Insurance?
There are three ways to get this coverage. The first option is to contact an insurance company that provides this insurance coverage. The second option is to contact an insurance agent. The third option is to visit an online website that aggregates insurance policy offerings from different insurance companies. An agent will help you select the right garage keepers insurance policy quickly and easily. You only need to inform about your specific coverage requirements. The online insurance policy aggregating website lets you compare various offers and quotes from different insurance companies. Such a website also has informational contents related to the insurance policies and industry
There are many things that can go wrong with your customer’s vehicle while it is placed under your care for service or any other purpose. It is better to pay a small amount for the insurance coverage and protect your business from liabilities and claims. Read the fine prints when taking this insurance policy. Check what types of risks are covered and the risks that are excluded. In most cases, you have an option to add riders specific to your insurance needs and preferences.
Although many companies in the U.S have contracts with trucking companies to transport their goods, a significant proportion of freight transport is handled by brokers. Regulated by each state, freight brokers act as intermediaries between the shippers who wish to transport their goods and the trucking companies that offer freight shipping services. The brokers handle the entire shipping process, including any documentation involved, and make sure that the freight is delivered to the shipper.
Now, when a middleman is involved in the freight transportation process, there is no guarantee that they won’t act against the interest of the client. The broker can engage in fraudulent acts which would cause the shipper to lose their shipment. To avoid such cases, all freight brokers are required to carry broker bonds transportation insurance. This is a form of insurance that protects the shipper form any illegal, fraudulent, or unethical activity by the broker.
Besides obtaining a license, all freight brokers are required to carry broker bond insurance or freight broker bond. The guarantee does not cover the broker; instead, it covers the client who will seek the broker’s services when shipping their goods. This price will provide a detailed guide into broker bonds insurance, what it entails, what brokers need to apply for the bond, and other useful tips for freight brokers.
Freight Broker Bond Explained
A freight broker bond is often required of brokerage businesses that intend to offer freight transportation services. The government body that needs freight brokers to carry the surety bond is the FMCSA. The bond protects motor carriers and individuals or companies that employ the services of the broker. Freight broker bond is a form of assurance that the broker will operate according to the agreement with the motor carriers and shippers. There are three parties to freight broker bonds agreement, and these are:
• The principal who is the freight broker
• The oblige who is the party requiring the bond (the FMCSA)
• Surety which is the surety company
If a broker doesn’t adhere to the terms of the contract, the shipper or motor carrier can file a claim and pursue compensation for losses or damages incurred as a result of the broker’s fraudulent or negligent acts.
FMSCA Freight Bond Requirements
The FMCSA requires the freight broker bond (BMC-84) to be in the amount of $75,000 for the one year term. This amount was initially $10,000, but it was increased in 2012 after the FMCSA established that there were many instances when shippers and carriers were being delayed and denied payment.
It is important to note that the BMC-84 Freight Broker Surety Bond is not a form of insurance. When an individual files a claim on a surety bond, the surety company (the third party in the agreement as mentioned above) has to pay out a loss. Therefore, the freight broker is required to provide full reimbursement to the surety company as stated in the indemnity agreement signed by the broker. The surety bond does not insure the freight broker.
Cost of Freight Broker Bond
The cost of freight broker bond varies depending on the rate. Bond rates depend on the qualification of the bond applicant. These rates are determined based on a few factors such as financial standing and credit rating. Annual premiums for the $75,000 BMC-84 bond are currently between $1,300 and $9,000. For brokers with a bad credit score, the freight broker bond cost will typically be higher due to the risk attached to bad credit applicants. For example, a broker with a good credit rating may incur a cost of around $1,500 to 3750. On the other hand, a bad credit score will attract a cost of $4500 to $9000.
For one to know the cost of the bond, they have to make an application and let the underwriter review the request. After this, they will generate a quote based on the determined rate and send it to the applicant.
Freight Broker Bond Application
Since there are standard freight bond amounts and an electronic application method, there are no special requirements for applying. The surety bond agency helps with the entire process, and these are the necessary steps to make the application.
1. Fill out the form and attach the required documents. One requirement may include a financial statement. However, this isn’t always the case, and the agent can advise whether to provide it or not.
2. The application is sent to the underwriter who reviews the request and generates a quote. Usually, this can be done within 24 hours.
3. After receiving the quote, one is required to pay the premium, receive the MC number, and their FMCSA Freight Broker Surety Bond will be set up.
How to Lower Your Freight Broker Bond Cost
As aforementioned, one’s credit rating can significantly hike the bond premiums. Therefore, brokers who have a poor credit rating can take certain measures to lower the freight broker bond cost. Some of the measures include the following:
• Provide strong financial statements. Even with a bad score, proof that one is financially capable of fully reimbursing the surety company can significantly lower the bond cost.
• Improve the credit score through steps such as taking care of negative items listed on the credit history. These include civil judgments, liens, tickets, or even unpaid child support.
• Choose the right surety bond agency. A surety agency can work to give you the best rate possible. Also, a good company that only works with top surety companies can assure that one has good backing for their bond.
Working as a freight broker requires that one get a broker’s license and acquire a freight broker bond from the FMCSA. One cannot operate legally in any state without these requirements. However, while the FMCSA broker bonds amount is fixed, the premiums aren’t. One’s financial standing and credit score play a significant role in determining their annual premiums. Therefore, it is essential to not only work towards building an excellent credit rating but also to find a good surety bond agency that works tirelessly to ensure that they get the best rates for freight brokers.
Technological advancement has resulted in a variety of vehicle accessories. A prime example of such is Electronic Logging Devices (ELDs). The motor vehicle regulatory authority requires that all fleets of trucks install these devices. Today, more than 3 million drivers have installed ELDs in their trucks to stay compliant with regulations.
What exactly is an ELD?
This is a unique electronic device that is used as an accessory for commercial automobile carriers and professional truck drivers. It helps them to track their Hours of Service (HOS). Having this device in their trucks allows them to stay compliant. In addition to that, truck drivers can fulfill their Record of Duty Status (RODS) by recording their driving activity with ELDs.
Characteristics of an ELD
An Electronic Logging Device (ELD) has some unique features. They include:
* The trucking Eld should connect to the truck’s engine to record if the automobile is in motion.
* The driver should be able to log into the ELD device and proceed to select options such as On-Duty, Off-Duty or On Duty Not Driving. Furthermore, the ELD should be able to choose driving segments automatically.
* An ELD should be able to present a Record of Duty Status (RODS) graphically. This is to help the driver to see the hours in a day quickly and effectively.
* An ELD should also be able to deliver e logs for owner-operators and the drivers in a standardized format. This data should also be transmitted to law enforcement officers in various ways. Examples of these are Bluetooth 2.0, Wireless Web Services and USB.
* The ELD should be certified by its provider such that it can meet the right specifications.
* An exciting feature of the ELDs is that they can be untethered from the truck’s cab for analysis with computers. By doing so, drivers can use data analytics software and mobile apps for information collection and management.
Cost of attaining and maintaining an ELD
Most ELDs cost a total of $495 per truck. This price is being reduced gradually by using software versions that run comfortably on smartphones and tablets instead of dedicated hardware.
ELDs are flexible. This is because they can easily be used in various types of vehicles using a variety of applications. The devices can be installed in small to medium-sized independent trucking companies as well as large national companies. In each case, the ELDs deliver a Return On Investment (ROI) in a concise period after installation.
Money savings for truck drivers facilitated by ELDs
Truck drivers can save a lot on paperwork costs by using ELDs. According to statistics, ELDs can help you to save $487 on driver filling RODS and $56 on submitting RODS. This device can also save $120 on Clerk filling rods. Moreover, by using an ELD, you can save $42 instead of using paper-based driver log books. Drivers can save up to $705 on paperwork annually by using ELDs!
Benefits of using Electronic Logging Devices (ELDs)
There are many advantages of using ELDs. They include:
* Versatility
These devices are versatile and can be used for fleet management.
* Reduced cost of fuel
ELDs allow fleet managers to monitor idle time and speeding activity of trucks. With this information, they can develop incentive programs that are geared toward increasing fuel efficiency.
* Reduced downtime for your trucks
According to strategic studies, fleet managers who use ELDs can reduce the vehicle downtime by 15%. They can also make use of electronic logging devices to boost vehicle efficiency by 13%.
* Overall reduction of crashes
By using ELDs, drivers can reduce the chances of accidents by 11.7%.
* Simpler compliance with regulations
Complying with the ELD mandate as suggested by the motor vehicle authority can help truck drivers to abide by other laws. Examples of these are Driver Vehicle Inspection Reports among others.
ELDs are an example of the implementation of technology in trucking. These devices assist drivers to have a smoother cargo hauling experience. They provide high tech solutions to truck driving data collection. It is important to note that trucks carrying sensitive cargo are categorized as Eld mandate exemptions. By using ELDs in your fleet, you can collect driver statistics easier and enjoy a wide range of other benefits!
The transportation industry can be rewarding for all those involved, but that does not mean things will always run smoothly. One of the experiences that many transportation companies have an issue with is dealing with DOT regulatory compliance. Sure, a transportation company understands the importance of compliance audits, but they may not have much experience dealing with them. You can increase your chances of a positive experience by preparing. The following tips will help you do just that.
Tips To Prepare for a Compliance Audit
The first thing you should understand is you do not necessarily have to be in the transportation industry to be audited. Construction companies, for example, can also be audited. The simple fact is if your gross vehicle weight rating or combination weight rating is more than 10,000 lbs, then you are going to be regulated by Federal Motor Carrier Safety Regulations (FMCSR).
You should understand the process of the audit, which is usually broken up into different categories of inspection, like the general inspection or the driver inspection.
The General Audit
The first thing you should remember is that documentation regarding liability coverage–specific to the cargo and type of vehicle used–must be shown. You can find an official schedule of limitations on Section 387.9 of the FMCSR.
You will also need to produce the MCS-90 or MCS-82 form, which is usually provided by your insurance provider or representative. The auditor will also ask for the DOT recordable accidents or your company’s accident register. The auditor is looking to make sure that accidents are being recorded. You must have this form, even if the company has not suffered an accident.
The Driver Audit
The driver will also be a point of interest for the DOT regulatory compliance audit. You will be expected to produce commercial driver licenses, driver qualification, and drug and alcohol testing. It will also be important to show any training that drivers are given to upkeep their qualification as a driver.
The auditor will ask to see documentation showing that you are keeping track of the expiration dates on licenses.
Another area that your auditor will be going over is if you and your drivers have been compliant in things like a pre-employment drug test as specified by 382.301 section of FMCSR. Documentation on post-accident drug and alcohol testing is also required. Section 382.305 states that random drug and alcohol testing is necessary. And section 382.307 asks that you act on reasonable suspicion.
It is your responsibility to produce safety performance history, as well as drug or alcohol results. You will also need to show certifications, the results from road tests, and show proof of any entry-level training that your drivers have received.
You can read the DOT regulatory compliance audit procedure at FMCSR for more specific information. Keep in mind that the inspection will also include an audit on operational, vehicle, hazard materials, and accident inspections–in addition to the inspections mentioned. The key is to be prepared and informed to make the DOT compliance audit go as smoothly as possible.
Businesses have no choice about getting 18 wheeler insurance for their fleet. This is mandatory according to the law. It is also a smart move given all of the things that could happen on the roads. However, policies can cost several thousands of dollars per year. Reducing this expense is a priority for many.
Factors that Affect Cost
A number of things are considered when insurance providers calculate premiums but it all boils down to risk. If you are found to be at a high risk of getting into an accident, then you will have to pay more for the service. If you have the profile of a safe client, then you will pay less. This is why driving records are vital. Avoid traffic violations for undesirable behaviors like speeding, DUI, and distracted driving. Diligence, discipline, and adherence to the rules of the road definitely pay when it comes to insurance.
Experience behind the wheel is another factor. Younger drivers tend to pay more than older ones with proven track records. Veterans have already gone through a lot after years of plying their routes. They can be entrusted to exercise caution as demonstrated by their record. The location and radius of operation are going to be considered as well. There are areas which are known to be prone to collisions according to statistics. Going through these will bump up the cost. In general, driving more miles equals more payments because of the longer exposure to dangers.
Of course, the value of the truck will be among the prime considerations. Brand new ones with excellent features will cost more to insure than older models. Providers will also look into credit rating. Those with a good rating can pay less since they are likely to continue payments without fail given their financial record. Those with a bad rating will pay more but this can be lowered over time as the credit record improves.
Types of Coverage
There are several types of coverage that can be included in an 18 wheeler insurance policy. The biggest cost will be incurred due to the primary liability. This kicks in when drivers cause an accident and have to pay for damages. This includes bodily injuries and property destruction. Large trucks can cause massive damage so drivers have to be extra careful to avoid collisions. There are also liabilities that can arise even without collisions. An example for be wrong deliveries. General liability coverage can take care of these incidents. Umbrella policies offer liability coverage for situations not tackled by the others.
Physical damage coverage, on the other hand, is inward-looking. It will pay for the damages to your own truck after involvement in a collision. Issues from theft and vandalism are also covered. It ensures that the vehicle can be quickly serviced to resume normal operations. Bobtail insurance is meant to cover a tractor but it must not be attached to a trailer. Cargo insurance is also available to pay for problems incurred by the goods being carried while in transit. For example, some might be stolen or get damaged along the way.
Trucks may also get damaged due to the fault of other motorists. Ideally, the other driver’s liability coverage can pay for the repairs. In case there is none, having uninsured motorist coverage will take care of the issue nonetheless. Lastly, occupational accident coverage protects drivers who are considered independent contractors. This takes the place of worker’s compensation in the event of work-related problems. Drivers can depend on this to pay for medical bills and other needs.
Cost Reduction Tips
Lowering the 18 wheeler insurance cost is possible with a bit of effort. You should cast a wide net before making a choice. Study the offers of different providers as their appreciation of your risk factors will vary. Some will ask for more while other will ask for less. Get as many quotes as you can and go for the cheapest one. Of course, you should also think about things such as customer service and ease of claims. The low cost will not be worth it if getting claims is troublesome. Look for feedback from past and current customers to learn more about their valuable insights.
Ask for discounts. Don’t hesitate to inquire about the kinds of rate cuts available for clients. You might be able to qualify for a number of them and reduce your insurance costs significantly. For instance, if you pay on an annual basis, the price will be much less than the usual monthly rate. Anything that lowers the risk of defaults, minimizes the possibility of accidents, and brings more business to the company can merit a discount. Getting insurance for more vehicles will reduce the average cost for each one. Using devices that enhance security and safety will also be appreciated.
There was a time, long before technology when all you needed was a handshake in order to seal the deal. However, like other industries, the trucking industry knows that there are many details that must be covered. A business definitely needs adequate protection to ensure that a business and the goods that they ship are free from worry during transportation. This is why the trucking industry values the trailer interchange coverage.
This type of policy can protect business owners from various financial liabilities. While it is quite an impossible feat to keep trailers you do not own from damage each time a trucker pulls one to a new destination, having the right type of insurance protects both the trucking company, employees as well as their families.
This insurance policy was put in place to help protect the trucking company from various types of accidents and damage that occur when drivers are loading and unloading goods in the process of hauling freight from one place to another. So this process of loading and unloading is fully covered during the interchange of goods.
The coverage is applicable as soon as the policy is purchased. In some cases, the coverage will only depend on whose possession the truck and cargo are in if damaged. So basically if the trailer is unhooked however it’s still in the possession of the trucker, then the trucker is covered by the trailer interchange insurance.
However, there are some restrictions to this rule. In some cases, some policies will only pay out if the trailer was still attached at the time the damage occurred. There may also be some restrictions on the type of damage and the amount of the insurance payout. There are ultimately maximum payout amounts.
Most people don’t know this, but physical damage is not covered by standard trucking insurance. Unfortunately, this places the truck driver in a vulnerable position. However, with trailer interchange insurance, you are covered in the following instances:
— when freight is being unloaded and unloaded
— if physical damage occurs to the product in the event that you are in an accident
— if a fire that is accidentally started damages the load
— if goods are stolen
— in the event of vandalism
These are just a few examples of the type of protection you get when you choose trailer interchange insurance. Ultimately, the insurance only covers trailers that you do not own. The policy does not extend to trailers that are owned by you and physically damaged.
The amount you pay for trailer interchange insurance will depend on a number of factors such as your driving record, your driving experience, the value of the trailer in question as well as local state regulations. Making use of trailer interchange insurance helps protect your business from the various financial losses that are caused by unexpected circumstances or penalties.
It also helps you to build and maintain your company and reputation as an owner. Ultimately, having a good reputation lets trailer owners know that they can trust you and have confidence when hiring you. This insurance policy not only protects properties not belonging to you but ultimately yourself and your family as well.
Trucking companies incur many expenses on a day-to-day basis. Sadly they are also perceived as a cash cow for scams. While some trucking companies may not see the value of an insurance policy, since they have so many expenses already, the reality of the situation is that the cost of an insurance policy is far less expensive than taking the chance of adding unforeseen expenses and penalties to your business.
Trailer interchange coverage is a smart business decision and it protects your investments in the business. One little-added expense could mean the difference between coverage and financial ruin. The trucking industry has enough dangers already, so why not take a step in ensuring that you don’t add to that list. Trailer interchange coverage can save your business lots of money.
Short term truck insurance quote – Are you a truck driver who wants to buy a truck for commercial purposes? Or are you looking to get an additional truck for your business? If so, you should consider buying temporary or short-term commercial trucking insurance.
Most commercial truckers understand how difficult it can be to buy insurance for a truck. You have to determine what level of coverage you need, evaluate various companies, get quotes, negotiate, and finally settle for one insurer. This process can take weeks to complete, and you will not be able to drive your truck during this period if you don’t have insurance.
What is temporary commercial truck insurance?
When you buy a truck, you have to drive it from the dealership to your business premises. During this time, you may not be able to purchase permanent insurance for the vehicle. You have the option of leaving the truck at the dealership until you get insurance or driving the vehicle without insurance and facing any potential risks along the way.
Temporary insurance is a policy that’s formulated to give you peace of mind when buying a truck. It is a short-term cover that you get for your truck before choosing permanent coverage. The insurance policy covers your vehicle against predetermined risks for a specified period, usually ranging between one and 30 days. With a temporary insurance cover, you can drive the truck before obtaining a permanent cover, and you don’t have to worry about incurring losses after physical damage.
Benefits of temporary commercial truck insurance
A short-term truck insurance policy comes with various benefits. First, your vehicle is covered right from the time you drive it from the dealership to your business premises. If the truck gets damaged along the way, the insurance covers any repair costs incurred. Some insurers also give benefits such as stripping services and lettering. You can brand, strip, and repaint the truck in preparation for the commercial applications.
Another benefit of a temporary insurance cover is that it gives you the liberty to drive the truck during the insured period. Most insurance companies provide universally-accepted temporary insurance covers. Therefore, you don’t have to worry about falling on the wrong side of the law by driving without proper insurance coverage.
Limitations of temporary commercial truck insurance
This short-term cover comes with restrictions. First, some insurers prohibit you from undertaking any commercial applications with the truck while under the short-term cover. Therefore, you have to wait for the permanent cover before using the vehicle for freight purposes. Also, some insurers also restrict you from carrying out any form of hauling while covered by the temporary policy.
A temporary commercial truck insurance cover can come in handy when buying a truck for your business. However, various companies have different short-term policies. Take the time to evaluate your needs before choosing a temporary cover. Also, get multiple quotes from various insurers and compare their rates. Once you find the right one, you can buy a policy and be able to drive your truck from the dealership to your premises.
If you’re a commercial truck driver who’s thinking about buying your own truck and acquiring an owner-operator status, temporary truck insurance is something that you’ll need to purchase as well. This is a special type of auto insurance that only lasts for a 30-day period. It is designed to give truckers the time to consider their options in long-term coverage even as they keep their new assets and themselves protected. Following is everything you need to know about this short-term coverage including how to get it.
You Can’t Commercialize Your Fleet With This Short-Term Cover
With temporary truck insurance, your new truck will need to remain out of official operations until you’ve been able to bind permanent insurance. This policy is only meant to protect you against a limited range of risks and damages during the coverage term. There is always a special stipulation written into these policies stating that fleets cannot be commercialized in any way until they are otherwise protected.
How Can A Temporary Policy Benefit You?
By binding a temporary truck insurance policy immediately after you’ve purchased your new commercial truck, you’ll be getting a reliable cover that allows you to safely and legally move your power unit on the public roads. Many drivers also consider these policies to be an excellent move towards obtaining more permanent cover. Through the duration of this plan, you can enjoy things like post-market applications, repairs, stripping services, lettering and more. You’ll basically get all of the provisions that are available to more permanent policyholders apart from your inability to commercialize your vehicle.
Temporary Truck Insurance Is Often Universally Accepted
When you work with a reputable insurer, you can bind coverage that is universally accepted. This means that rather than having to keep your new truck parked, you can drive it freely on public roads throughout the 30-day period. A lot of new truck owners find it incredibly difficult to take their vehicles out ahead of binding permanent coverage.
Peace Of Mind
One of the greatest and most obvious benefits in binding short-term coverage for your truck is greatly increased peace of mind. Even though you won’t be actively using this vehicle as part of your commercial operations, you will still need to move it around in order to get it from the point of purchase to your business, make the truck ready for the necessary work, and engage in other preparatory activities. With a good policy, you will have extensive protection against all short-term damages. Whether remodeling your truck, looking for a recruiter or simply driving it to your yard, you won’t have to worry about accidental collisions, property damages, physical injuries or the costs of hospitalization. The sole limitation to plans like these is that you won’t be able to participate in any aspect of commercial freight business until your truck is permanently and properly covered by a long-term, commercial plan.
What You Can And Cannot Do With Temporary Truck Insurance
Once you’ve purchased your new truck, you probably won’t be financially able to manage the ongoing costs of a permanent policy until you’ve lined up regular work. Truck drivers who are trying to get their own businesses off the ground are usually walking a very delicate line in their efforts to minimize their start-up costs and make sure that everything is done legally. With temporary truck insurance, you can never move a load under dispatch order. Moreover, your truck cannot be laden as per a bill of lading. With these policies, you are also prohibited from moving any cargo for cash, whether for yourself or any other third-party. The sole goal of these policies is to keep your truck protected from the time that you buy it until the time that you are able to line up sufficient work for justifying the costs of a permanent cover.
Once this coverage is bound, any non-commercial movement and activities that you engage in with your vehicle will be fully compliant with FMSCA, DOT, and the stipulations of any loss-payee or lien-holder. Also known as drive-away coverage, this plan will eliminate any fears that you have of losing your new asset in a freak accident or of facing devastation due to an expensive and unforeseen liability issue.
Don’t Be Fooled By Non-Trucking Liability Insurance Plans
One very common mistake among new commercial truck owners is assuming that non-trucking liability coverage is sufficient protection for all activities so long as vehicles are never commercialized. Sometimes referred to as a Bobtail policy, this plan will never cover any claims arising from events that happen before a contract has been executed for permanent coverage. Thus, if anything should happen to your truck or as the result of your truck while you look for work, work on your vehicle, or transport it back to your home or yard, this plan will not cover any of the resulting damages.
How To Get Temporary Truck Insurance
You can find the right temporary truck insurance for your circumstances, budget, and needs at ratemytruckinsurance.com. Once you’ve got a reliable, short-term cover in place, you can safely and legally bring your vehicle home and start shopping around for a recruiter. The most important point to bear in mind, however, is that you cannot carry or deliver any type of freight until a permanent plan has been bound.
