As an owner in the transportation/trucking industry you have many exposures associated with your vehicles whether owned or leased with a fleet or individual vehicle, including trucks, sprinters, vans or other types of vehicles used in your business you generate large exposure and duty to those around you in the public. A single incident can potentially put your company in financial jeopardy. You are also required to carry primary liability by federal regulations to eve obtain your authority to transport goods.
Primary Liability Insurance provides coverage for vehicles, owned or leased, by your company. It protects the company and its employees and leased operators by providing the coverage for bodily injury, property damage and more while vehicles are in the course of business for your company. It will allow you to legally transport goods and follow the federal regulations in place.
As a professional transportation company, you have much of you hard assets tied up in the trucks, trailers, sprinters, vans, and more that you operate. This equipment is the backbone of what you do as a company. Any loss of this equipment can severely impact your ability to conduct your business. Whether the loss is a small one or a total loss, it can have an adverse effect for you and your revenue.
Physical damage insurance coverage protects your company and therefore its revenue stream from damage or loss to your equipment because of an accident, theft, or other incidents. It can cover damage from a collision while the vehicle is being used or theft when not in use or unoccupied. Physical damage insurance covers the costs to repair or replace damaged equipment and put it back in to shape to produce revenue.
As an owner of a transportation company, the goods or cargo you transport is the lifeblood of your company. It allows you to generate revenue and produce a profit. An accident, theft or other loss involving the cargo you haul threatens your ability to earn that revenue and profit, as well as maintain a positive image in the transportation industry you serve.
Cargo insurance provides vital coverage for the goods and materials you transport. It protects these goods and materials from many exposures to loss; such as damage in an accident or theft, contamination and more. It protects your revenue stream and reputation by paying for losses to your goods.
A transportation company today faces many potential exposures and is susceptible to many risks. Exposures such as claims due to bodily injury to visitors or clients on your premises, property damage to another’s property or site caused by an employee on their premises, personal and advertising injury are also exposures. A slip or fall by someone on your premises, exposes you to a potential lawsuit or employees performing work at other sites or on the road also expose your company to loss financially.
Commercial general liability insurance is an absolute necessity for every transportation company. This type of protection provides broad coverage for the premises operations, employees at other locations or while on the road, leased employees during their work for you, and much more. It will pay to defend your company in a covered lawsuit or action regardless of the merit of it. Most of your clients will require you to show proof of this coverage before they allow you to transport their product.
If one of your employees becomes injured or ill due to work related incidents or exposures, you are required by law to have the appropriate coverage in place to protect your workers. This applies whether you are at fault or not. Your company is responsible and must cover employees on your premises, off your premises; anytime they are acting in the course of business for your company, day or night.
Workers compensation insurance provides for state mandated protection of your employees by your company. It protects your employees should they have a job-related injury or illness during the course of their duties. The coverage is rated and assigned based on the duties of each employee and each state sets the benefit levels and base cost. The higher the risk of injury or illness the higher the rate. This coverage is required and a must have for anyone doing business, regardless of their industry.
Losses and lawsuits are quite common in the transportation industry today with no letup in sight. Settlements can be and are substantial in many cases. If your business is found responsible for injury or damages caused by your operations, you may very likely face a large liability loss that will exceed the basic limits of your standard insurance coverage and threaten the very survival of your business.
An umbrella or excess coverage, while technically different, provide higher limits of coverage. Limits typically range from an additional $1,000,000 to $10,000,000 and up. Coverage can extend your limits of general liability, primary or auto liability, and more upward to the limit purchased. It provides a true safety net and allows you to continue to operate your business.
As an owner of a transportation company, or any company doing business, you face many exposures that not as easily controlled. Whether you are a privately held company or public, you may have a directors and officers (D&O) exposure, fiduciary/crime risk; if you have any employees you can be held liable for employment practices (EPLI). In today’s world, we are all susceptible to cyber hacking and other electronic invasions. Any resulting lawsuits are typically expensive and time consuming to defend and carry potentially large settlements.
Obtain a comprehensive management liability insurance plan that will protect the company and senior individuals, owners and officers of the company. Director’s and officer’s coverage, employment practices liability insurance, fiduciary liability insurance and cyber liability insurance are just a few of the coverages that protect and preserve the ability of you and your company to operate in today’s litigious world. These coverages will defend as well as provide necessary money in the event of a covered settlement or loss.
In the transportation industry, owner operators can be an important part of the production and revenue stream for your company. While these drivers are covered while they operate for you, under your guidance, direction or authority, they do not have the protection of your insurance when they are on their own time. Because of this, the owner operator must have their own insurance coverage for these times too protect them from the potential accident. Liability to others and damage to their own equipment. Their costs can be expensive for them and can be a factor in who they decide to lease their services to.
As the company owner, you may lease owner operators for various reasons from flexibility, no need to purchase additional equipment, ability to increase and meet your contracts and business needs, you can attract quality owner operators by offering an insurance package for individual or fleet owner operators that will protect their equipment they own and protect them from liability exposures in the event of an accident when they are not under your direction and on their own personal time and use. The ability to package or leverage you have as a company owner, using owner operators, may allow you to offer the owner operators less costly insurance to protect them and make you an attractive place for them to lease their services to.