Inside Coverage Insurance Fall 2005
A publication of Great West Casualty Company
Copyright 2005, All Rights Reserved

Feds Change HOS Rule
On August 19, the FMCSA issued a new hours-of-service (HOS) rule that spells out the length of time commercial drivers can operate trucks before they are required to take a break. The new rule is the product of years of research meant to keep drivers healthy and make highways safer.

The new rule replaces HOS regulations that were last updated in 2003. Parts of the rule, including maximum driving time and minimum rest limits, remain the same. However, the rule includes changes affecting short-haul operators and longer distance drivers who use in-cab sleeper-berths for their rest.

As in the 2003 regulations, the new rule prohibits truckers from driving more than 11 hours in a row, working longer than 14 hours in a shift, and driving more than 60 hours over a seven-day period or 70 hours over an eight-day period. In addition, the new rule requires truckers to rest for at least ten hours between shifts and provides a 34-hour period to recover from cumulative fatigue. Based on current research, the FMCSA concluded the new rule will keep drivers healthy and reduce the 5.5% of fatal truck crashes that are caused by driver fatigue.

The most important change under the new rule now allows short-haul operators not required to hold a commercial drivers license to extend their workday. Also, they will no longer have to maintain logbooks.

The change was prompted by safety data that shows short-haul drivers make up over half the commercial fleet, yet they are involved in less than 7% of the nation’s fatigue-related fatal truck crashes.

Another change contained in the new rule requires truckers who use sleeper-berths to rest for eight hours in a row and take another two consecutive hours off duty before resetting their daily driving schedule. Studies show that drivers are less likely to be fatigued if they take a single eight hour block of rest than if they break their rest into smaller periods of time as they were allowed under the previous rule.

As in 2003, the new rule applies only to commercial truck drivers and not to passenger motor coach operators. Motor coach drivers are still covered by the HOS rules in effect prior to 2003.

The new rule will go into effect October 1, 2005. The FMCSA pledged to work with states and the trucking community for the first three months the rule is in effect allowing them time to update educational materials, train employees, and reprogram driving schedules. During this transitional period, FMCSA and state law enforcement officials will monitor carriers for egregious violations of the new rule and pursue enforcement action where necessary. For more information or to review the new HOS rule, please go to www.fmcsa.dot.gov.
Source: Federal Motor Carrier Safety Administration

Managing Work Comp Claims
Medical costs are out of control. To help manage expenses related to work comp claims, Great West implements many cost-saving techniques and maintains an open line of communication with all parties. An injured worker is contacted by one of our claims professionals within 48 hours of his/her accident. We obtain the necessary information to evaluate the claim and explain the benefits to all involved parties. From there, we make weekly calls to the employer, employee, and physician to assure efficient and effective medical management. Great West has a medical advisor on staff, and medical panels can be furnished upon request. We also attempt to establish a return-to-work date as soon as possible.

“Managed care” is the term used to describe a systematic approach to managing an employer’s costs associated with work comp disability. The goals of Great West’s managed care program are to:

• Save money by reducing actual expenses.
• Provide Preferred Provider Networks that are selected to offer medical services in the work comp arena.
• Utilize medical review services to ensure that the treatment provided is necessary and appropriate in terms of frequency and duration. Medical bills are also audited for accuracy.
• Ensure recovery is progressing as it should by providing a nurse case manager to serve as a resource in coordinating a successful return to work.

The key to successfully managing work comp claims is immediate reporting. One call to our 24-hour, toll-free claims reporting line and the process is set into motion. Early investigation and intervention are critical to reducing claims costs.

Hauling Bulk Commodities
To better serve truckers who haul bulk commodities for others, Great West has modified its policies to address their unique needs.

Great West’s Truckers Coverage* form was changed so no endorsement or election has to take place for us to insure a covered pollution loss caused by cargo. An example is a tanker that has overturned, and its cargo is spread over the landscape causing damage. The truckers form also includes a wrongful delivery exclusion, clarifying that coverage is provided until the truck/trailer delivery has been completed. An example is a delivery hose rupturing before the load is emptied.

Our cargo coverage* form has been improved by not excluding loading, unloading, or damage to cargo from misdelivery. These are two major coverage features that bulk commodities carriers should have. An example would be gasoline cargo damaged when unloaded into a customer’s half-full diesel underground tank.

The third coverage modified for bulk carriers is commercial general liability* (CGL). When a truck delivery is complete, any subsequent bodily injury or physical damage liability loss would be covered by the CGL form under the completed operations coverage. While Great West’s CGL forms do not exclude misdelivery of any product, we do not know of any other insurance carriers that cover misdelivery of a dry or gaseous product. An example would be mixed gas and diesel later pumped into diesel trucks, causing the engines to seize. Another example would be brown flour put into a white flour bin that would cause the subsequent bread production to be scrapped.

* All policy terms, conditions, definitions, and exclusions apply to this coverage. Please see your agent for exact provisions.