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Question: |
May I state on the application that I transport “General Commodities”?
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Answer: |
No. Insurance policies for the companies which write Cargo exclude
or have special endorsements regarding certain commodities, so they
require you to be specific.
There are several commodities referred to in the insurance policy as
“targeted.” These include liquor, beer, wine, finished clothing,
electronics, etc. If you are hauling a “targeted” commodity, there will be
a special endorsement on your insurance policy outlining coverage for
loss due to theft.
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Question: |
Why do I have to insure a truck that is not running?
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Answer: |
When an insurance company makes a filing for you (Form
BMC91X), the filing states the insurance company is responsible
for every piece of equipment you own and/or operate. If you have a
truck that isn’t running, you cannot endorse it off the policy
unless you can produce a Bill of Sale or a copy of an agreement
terminating the Lease Agreement.
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Question: |
If my authority is issued for a common carrier, contract carrier and broker,
is this a problem?
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Answer: |
Yes, a major problem. Most insurance companies do not want to provide
coverage if you are running a brokerage operation as part of your business
because they have additional exposure.
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Question: |
May I get my 22 year old brother-in-law approved as a driver since he has
a good driving record?
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Answer: |
Probably not. Most insurance companies will only approve drivers
between the ages of 25 and 65. If a driver is 65, we must provide a
copy of your DOT Long Form Physical and an MVR. All drivers must
have at least two years’ experience in a piece of equipment similar to what they will be driving.
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Question: |
If my company is now insured to haul plastic, lumber and machine
parts, can I accept a one-time load of batteries?
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Answer: |
Absolutely not in a majority of cases. You need to fully understand
your exposure if you engage in the hauling of hazardous materials.
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Question: |
I have 5 trucks and 7 trailers. Why do I have to have liability insurance
on the two extra trailers?
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Answer: |
If you have a trailer parked somewhere and someone climbs up, falls off
and is injured, there will be a liability claim. If you have no insurance
coverage under your policy, you will have to pay individually.
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Question: |
If a loss occurs while one of my drivers has left a truck unattended for a
short period of time, is insurance coverage uncertain?
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Answer: |
Possibly. Some cargo insurers impose an unattended trailer warranty on
certain types of commodities. Such a warranty stipulates the conditions
under which a truck driver hauling those commodities can leave them
unattended.
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