Inside Coverage Insurance Fall 2006
A publication of Great West Casualty Company
Copyright 2006, All Rights Reserved

There is more to an agency and insurance company than coverages and policies. That was the message given recently at the Truckload Carriers’ Safety and Security Division Meeting from Dave Parker, Senior Legal Counsel, Great West Casualty Company. The meeting was attended by over 300 safety, human resources, and security professionals from the truckload industry.

In addressing attendees, Parker said, “Our goal is to educate you so that when you are in the market for insurance, you know what is out there, how to ask for it, and how to recognize if you are in the right store.”

Parker drew on his background as a former manager and owner of a trucking company to develop his presentation. He also received input from Great West’s regional agents’ councils.

To be an educated buyer of any product or service, said Parker, you need to assess your needs and your budget and know what options are available. The same holds true of insurance.

“You should approach your agent and insurance company from the mind-set that you are engaging a partner or consultant,” he said.

Agents and insurance companies should be evaluated not only on their ability to provide coverage, he noted. They should also demonstrate how much they can improve the trucking companies’ business, how they can help expand their business, and how much profit they can help develop and preserve within the business.

Just like trucking, insurance should be viewed as a long-term commitment. There are insurance companies that are truly involved and dedicated to the trucking industry. Others are lured into the market because they see large premiums. Unfortunately, these companies know little about the details and intricacies of trucking and may not offer much in the way of service or support.

Parker developed an “Insurance Buyers Guide” (see page 3-4) that trucking companies can use to measure their insurance service needs against what is currently offered by their insurance company and agent. The guide is broken down into five key areas: Basic, Compliance, Risk Management, Trucking Company Operational Issues, and Insurance Company Operational Issues.

“Seek out insurance companies and agents that share your passion for safety,” concluded Parker. “You will be best served if your company takes a long-term approach to growth and development and is willing to and can recognize quality. Demand more and challenge your agent and insurance company to help you set your standards higher.”

Now is the time to review the extent your agent and insurance company provide these services to you. Look at the level of commitment they have to helping your trucking company beyond insurance.

Temp Sensitive Loads

Refrigerated carriers have the option of running their refrigeration units in two modes, “continuous” and “start stop.” We have seen an increase in losses from the use of the “start stop” mode by carriers wanting to conserve fuel costs. The only sure way to keep temperature-sensitive loads at the optimum temperature is to have the refrigeration unit set on “continuous.”

Summer, with its warmer weather, is a time when a greater amount of seasonal-type products are hauled. Without a doubt, these perishable products require more of the truck driver’s attention. The driver needs to routinely monitor their reefer unit’s operation to insure that the cargo is maintained at the required temperature.

Shippers, brokers, and receivers are now recognizing and requesting that their product be hauled with a continuous cool setting to more evenly and continuously maintain the product’s temperature.

Although running the unit on continuous will cost carriers a few more dollars in fuel each trip, it may help to prevent cargo rejections and off-temperature claims. This, in turn, will prevent deductible payouts and costly insurance claims for the carrier.

Specialty Equipment Hung On A Tractor

Q : I am going to lease diesel fueled heating/cooling units and install them on my tractors. According to my lease, I’m responsible to the leasing company for any damages to the units. They will be “permanently attached” or bolted on. However, they may be moved from tractor to tractor when I change out equipment this year. I carry a fairly high physical damage deductible. Is there any other way to cover it?

A: This is becoming an issue now with the high cost of add-on equipment. Here are some other examples – Qual Comm/Electronic Hardware, power takeoff equipment or other tractor mounted pumps, cranes, etc. Physical Damage coverage for these items is included when “permanently attached” to a covered auto. However, needed coverage may get “lost” if you have a high deductible or self-insure collision or all physical damage. You also may also forget to account for the equipment in the values declared. A total loss would leave this equipment uninsured on a scheduled value policy or a fleet policy where coverage is subject to values on file with the company.

An alternative coverage to consider for add-on’s is an Inland Marine Floater. You can cover the tractors for a high deductible or self-insured physical damage, but still cover highly damageable equipment that moves from unit to unit. An Inland Marine Floater would also cover equipment stored until the tractor hits maintenance. The rates are reasonable, the deductibles are more reasonable and coverage can be written on a blanket basis.

This is also a viable coverage option if you insure equipment on a retention policy. It might also make sense if you want to keep Specified Perils and Collision coverages on your fleet, but need the all risk coverage an Inland Marine Floater provides.

REPORT ALL
ACCIDENTS
IMMEDIATELY
800-228-8040
24 hours a day 7 days a week

Insurance Buyers Guide

in pdf format (printable)