Trucking

Motor Truck Cargo (MTC)

This coverage applies to the freight you carry, such as dry van, reefer, car hauler, flatbed and similar loads. It is important to understand the following:

All cargo policies include exclusions for certain types of freight. Failing to understand these exclusions and hauling restricted freight may result in a denial of coverage for damage to the load. Commonly excluded items include electronics, precious metals, contraband, cigarettes, hard alcohol, eggs, fine art, china and shellfish. In many cases, we can buy back excluded cargo coverage when needed.

For reefer breakdown coverage to apply, you must take the unit to a mechanic for proof that a mechanical failure caused the loss. Driver errors in regulating temperatures often are not covered. Many insurance companies also require evidence that the refrigeration unit was serviced regularly prior to the loss, so it is important to maintain documented trailer maintenance files.

Truck Liability

This covers third-party bodily injury and property damage relating to your trucks or leased contractors under your dispatch or signage. For example, if your truck jackknifes, kills a car’s occupants and totals their vehicle, the resulting bodily injury and third-party property damage would fall under this coverage.

Bobtail liability, also known as non-trucking liability (NTL), applies to owner-operators to cover liability while they are not under dispatch from the motor carrier. However, bobtail or NTL policies are not valid when the owner-operator is actively engaged in work or returning from a long haul while deadheading or bobtailing. In these situations, the motor carrier’s primary liability is in force, as the owner-operator is considered to be operating under the motor carrier’s authority.

• Deadheading refers to pulling an empty trailer.
• Bobtailing refers to operating without a trailer.

Liability policies may be written on a scheduled unit basis or a reporting form structure based on miles or gross revenues.

Occupational Accident (Occ Acc) or Workers Compensation (Work Comp)

This provides coverage to the driver for injuries, including medical bills, loss of income, short- and long-term disability and permanent disabilities. Illinois law requires Workers Compensation coverage for all W-2 drivers. Failure to provide Workers Compensation can result in significant state fines, so it is critical to protect your company.

Trailer Interchange or Non-Owned Trailer Coverage

This covers non-owned trailers in your possession. Owned or long-term leased trailers should be scheduled on your policy. However, during normal business operations you may temporarily pick up a non-owned trailer for a load. If a loss occurs, you may be responsible for damage, towing and storage. You can purchase trailer interchange coverage or non-owned trailer coverage to protect against these exposures.

• A signed lease agreement with the other party is required for trailer interchange coverage to apply.

Physical Damage

This covers damage to the truck and/or trailer itself. When insuring your equipment, ensure coverage is adequate. Do not over-insure, as payment at the time of loss is based on the unit’s actual value, not the insured amount.

• Physical damage coverage may also include towing and storage reimbursement. The unit must be insured for coverage to apply.

General Liability

This may cover losses, lawsuits or claims not related to auto or truck injuries. Many trucking companies do not carry general liability when they first start out. Without it, you may have no coverage for injuries on your premises, injuries or property damage caused by a driver outside the vehicle, suits for libel and slander or other exposures. Some general liability policies, such as business owners policies (BOPs), also allow you to add property coverage for office contents.

• Our goal is to help clients clearly understand the coverages needed to protect their business operations. Thank you for your partnership and for trusting us as your insurance provider.

Crime and Employee Theft Coverage

Many trucking companies are surprised to learn that under nearly all standard cargo and physical damage policies, no coverage exists for theft of a tractor, trailer or cargo if stolen by one of their own drivers or dispatchers. This applies whether the driver is W-2 or 1099. Because the individual works for you, it is considered employee theft, and standard policies exclude these losses.

Consider the risk: If a driver steals a $250,000 load in a new $100,000 tractor pulling a $25,000 trailer, you are responsible for the loss. Brokers or vendors may deduct the amount from your accounts receivable or pursue legal action. Even if you recover the cargo, federal law requires the FDA to condemn most food products missing for more than 24 hours, resulting in a total loss regardless of condition.

Bondar Insurance Group offers a specialized policy designed for trucking companies to avoid this exposure. Coverage can also include office employee embezzlement and credit card fraud. Limits typically start at $250,000 per loss and can be increased as needed.

This is one example of why “good advice is your best insurance” and why clients trust Bondar Insurance Group.