The single deductible endorsement will not apply to a comp or specified perils loss on property owned, rented, or leased by the insured. You will still need to buy location coverage for that risk.

Please check with your agent if you have a question as to when the endorsement becomes effective in your state.

Hours of Service Update
On August 30, the Federal Motor Carrier Safety Administration (FMCSA) filed a motion with the DC Circuit Court of Appeals seeking to stay further action on the hours-of-service (HOS) lawsuit filed by Public Citizen, Citizens for Reliable and Safe Highways, and Parents Against Tired Truckers. If the stay is granted, the new HOS rules would remain in effect for the time being. The compliance date for the new rules was January 4 of this year.

After consultations with federal and state officials, the FMCSA believes a stay is necessary to avoid substantial disruption in the enforcement of HOS requirements. Staying the court's decision would allow the agency time to address and to correct the concerns expressed by the court about the new HOS rules. FMCSA is asking for a stay of at least six months.

In a unanimous July 16, 2004, decision, a three-judge panel said the new federal HOS rules, as issued in April 2003, are "arbitrary and capricious" because the agency failed to consider the impact of the rules on driver health, as it was required to do by Congress.

The FMCSA was given until August 30 to determine how to respond, either by requesting a rehearing, appealing the decision, or initiating a new rulemaking process. A decision from the court is expected soon. Great West will post any additional information on the HOS ruling as it becomes available.

The following* was recently reported to Great West as a “loss” under a broad form cargo policy. A load of cheese was to be delivered to a fast food restaurant. Upon arrival at the restaurant, the load was rejected by the restaurant for the sole reason that the trailer seal was broken. The trailer doors were not opened, and therefore, the load was not inspected for possible contamination. Our customer took the load back to the shipper who reworked the load, repackaging the cheese to remove the restaurant’s name and put it into generic packaging. After the load had been reworked by the shipper, six days after the load had been rejected, the claim was called in and the shipper’s expense for reworking the load was submitted as a “loss” under the broad form cargo policy. Was there a “loss” as defined by the policy and sustained by the insured that required payment under the cargo policy?

If your answer to the above was “no,” you are correct. In this specific situation a “loss” did not occur, and therefore, coverage is not available under the cargo policy. If there had been other factors involved, i.e. the cargo was inspected and it was contaminated, then the answer would most likely have been different. But if the sole reason for rejection of the load is because the trailer seal is broken, then there is not a “loss” under the policy.

What if the bill of lading or the shipping agreement required that the load be delivered with the seal intact? Would this additional fact have changed your answer to the initial question? If your answer is no, it would not change the answer, you again are correct. This additional language may cause our customer to be responsible for payment of the load, but it will not cause it to become a “loss” under the policy.

*The article is written with the understanding that the facts are limited to those outlined for the situation stated. Any additional fact will change the answer.

Why General Liability?
As a motor carrier, you have physical damage and liability coverage for your units. You also have cargo coverage for the goods you haul. You’re set, right? Not quite. Great West offers commercial general liability coverage that will address the following situations:

• Customers on your premises.
• Salesperson on a customer’s premises - what they say and do.
• Loading and unloading: Before a load is picked up and after it is unloaded, or while being moved by a mechanical forklift.
• Erroneous delivery of products, including liquids.
• Actions of a driver while on the premises of others: loading docks, truck stops, etc.
• Libel and slander exposures. Writing or saying something injurious, i.e. remarks made about an employee during a reference check.
• Taking an outside repair job or performing repairs for an owner/operator.
• Helping a disabled trucker fix his brakes at no charge, and they fail later.
• Selling extra tires or parts to another trucker.
• Bodily injury resulting from using self-defense to protect persons or property.
• Attractive nuisance on business property.
• "Guard dog" used to protect business property.
• Furnishing free beer at a party or after a meeting.
• Contractual liability - leases, key-stop, intermodal, etc.
• Fire legal liability on rental property.
• Medical expense coverage.
• Options may also be included, such as employee benefits liability or stop gap to obtain employers liability in monopolistic work comp states. All claims are managed by adjusters who are experienced in handling premises and operations exposures. See your agent for details on this coverage.