What is Non Trucking Liability Insurance

What is Non Trucking Liability Insurance

Insurance.  Just the word itself is enough to raise blood pressures and set teeth on edge.  Regardless, insurance is a way of life and without it the wheels simply can’t – and shouldn’t – turn.  The importance of educating yourself regarding the different types of non trucking liability insurance coverage and policies that exist is great, and when a loss event occurs having the right coverage can mean the difference between handling some paperwork and complete bankruptcy.

Certificate of Insurance

After determining the appropriate types and levels of coverage, and after all premiums have been paid in full, a Certificate of Insurance (COI) will be generated.  The COI is the document that summarizes your insurance coverages and amounts, and is also your proof that your insurance is valid and current.  Keep it nearby, as your customers will definitely want to see a copy.  A sample COI, with explanations pertaining to each section, can be found here: http://www.boma.org/appendix/Documents/SampleCOIwithInstructions.pdf

General Liability

This coverage type provides coverage against claims for bodily injury and property damage “arising out of premises, operations, products and completed operations” and may also include other aspects such as misleading advertising or personal injury liability.1 Each item covered by general liability will have its own dollar amount of coverage level, so be sure to select and adjust the levels however necessary for your particular needs.

Auto Liability

Automobile (auto) liability insurance would apply in any loss event that directly involves the carrier.  Whether a carrier’s truck crashes through a fence or a civilian’s vehicle collides with a truck parked on the side of the road, auto liability is the insurance that would cover related damages.   In the case of a third party logistics company (3PL) that brokers its freight to a carrier, the 3PL’s coverage amount may be contingent on that carrier’s auto coverage.  In other words, the 3PL’s contingent auto coverage could provide the necessary coverage in the event of a claim where the carrier’s insurance turns out to be invalid or fails to provide the appropriate level of coverage necessary for the situation at hand.

Excess/Umbrella Liability

This type of coverage offers protection when the limits of the general and automobile policies are exhausted as a result of a claim event.  In addition, the umbrella policy can provide coverage for situations not specifically covered by the general liability policy.2 Umbrella liability coverage does have exclusions, however, and certain events exist that would not be covered.  For those situations, look to errors and omissions coverage to provide protection when such conditions happen.

Errors and Omissions

Occasionally claims arise that are not covered by any of the above policy types. For example, if a broker inadvertently gives the wrong information to a carrier, that broker could be considered negligent.  Should that occur, errors and omissions (E&O) insurance would be the type of insurance to cover such a situation.  While E&O would help – and would likely pay – in situations such as this, please note that E&O will not come into play for any other types of situations such as property damage or bodily injury.3

Other Insurance

While countless kinds of additional insurance riders are available for both companies and customers, be sure that the specific type needed to insure your particular freight is available, and that the coverage amounts are sufficient for the value of your shipment(s).  Be it an incredibly expensive transformer or temperature-critical insulin, other insurance options such as high-value coverage and reefer breakdown protection exist that can be added to protect your commodity.

With the myriad of insurance coverage types available and the countless number of trucking companies in existence today, it is imperative that the transportation provider you select understands and possesses appropriate levels of insurance.  ReliancePartners is well versed in the needs of our customers, and has valid insurance in place in each of the categories detailed above, with more available depending on the commodity you need to transport.  For information about our coverage levels, or for an updated copy of our Certificate of Insurance, contact one of ReliancePartners’s experienced freight consultants today at 877.668.1704.