Transportation Insurance and Trucking Insurance Expertise
Transportation affects nearly every enterprise in North Texas, across the country and around the world. Transportation exposures are compounded with federal laws and regulations, which must be adhered to by the transportation company as well as the transportation insurance carrier. Certain industry-specific transportation insurance considerations include property insurance, cargo insurance, auto liability and warehouse legal liability. Business owners must take great caution to insure all exposures properly. Understanding the risks and exposures associated within the transportation industry gives Swingle Collins the ability to effectively communicate with our transportation industry clients, including owner operators, general freight carriers, freight forwarders and third party logistics companies.
Trucking Insurance Coverage – Insuring the Cargo
There are many different types of trucking exposures including general freight haulers, auto haulers, and contingent cargo exposures for third party logistics companies.
Cargo insurance covers property while it is in the course of transit, which could be on a truck, train, boat, plane, etc. It's very important to ensure that the cargo insurance coverage is written to cover all property that's being transported. Most policies contain limitations related to the type of property they are insuring. For example, many cargo insurance forms will often contain restrictions for the theft of alcoholic beverages, which would be inappropriate for truckers that haul beer, wine, or hard liquor. Other cargo insurance forms may include limitations related to spoilage, deterioration, contamination or breakage that can be especially relevant to haulers of perishable or fragile products. Most cargo insurance policies will have exclusions for employee dishonesty or intentional acts. In addition to exclusions, many cargo policies will also contain warranties that spell out certain conditions that must be maintained for coverage to stay in effect. A standard cargo insurance form may have a warranty which requires that a truck must be locked or coverage may be excluded. A refrigeration breakdown endorsement may have a warranty that scheduled equipment maintenance must be conducted or coverage may be excluded. It's very important to understand what your cargo insurance policy covers versus what's excluded.
Along with the basic cargo policy, your Swingle Collins agent can suggest a wide assortment of supplemental options or endorsements that may be added to the standard transportation insurance coverage form to customize coverage for your operations. Many of these attachments are designed to buy back policy exclusions or limitations that may be relevant for a specific kind of load.
Insuring the Warehouse Exposure
Companies that operate extended storage or warehouse facilities have the need for a warehouse legal liability policy. Essentially, the exposure of a warehouse is similar to a common carrier, and the warehouse legal liability policy is comparable to a cargo policy in that it's designed to cover liability imposed upon the warehouseman for loss or damage to property of others while in their care, custody, or control. In fact, many insurance companies combine their cargo insurance and warehouse legal liability forms under one policy to provide a convenient method for insuring both the transit and long-term storage exposures. Also like cargo policies, these forms can vary considerably between carriers. For example, most warehouse legal liability forms specify a statutory and contractual legal liability limit per loss. Some will even provide for an additional direct primary coverage whereby a warehouseman can issue certificates of insurance to provide increased values on goods above the legal requirements. Once again, this type of insurance is many times written in conjunction with direct damage cargo coverage on one master policy that allows for a single certificate which includes a limit for each exposure.
Remember also that warehouse legal liability forms should be reviewed as to the exclusions and restrictions found within the policy. For instance, most warehouse forms will include the same type of property limitations (i.e., precious commodities, jewelry, money, etc.) and perils limitations (i.e., false pretense, refrigeration breakdown, acts of God, etc.) as are found in many cargo insurance policies. Many limited warehousemen forms are written to only insure property found within a covered building, thus eliminating coverage for goods stored outside of a structure, such as larger equipment items.
Third Party Logistics Companies – Contingent Cargo & Contingent Auto
Third party logistics companies have a unique exposure to cargo and auto liability because they do not actually operate or transport property in their own vehicles. The facilitation of these logistics services creates a vicarious liability to cargo and auto loss. A contingent cargo policy will cover the loss to cargo that the third party logistics company is legally liable for due to a covered cause of loss from the trucking company they hired to haul the load. A contingent cargo policy is less expensive than a regular cargo insurance policy a trucking company would purchase because the contingent cargo policy is relying on the trucking companies cargo policy to respond on a primary basis and the contingent cargo policy to only respond if the trucking company's policy does not respond.
Swingle Collins Has the Experience to Meet your Transportation Insurance Needs
Swingle Collins has over 30 years of experience insuring a wide variety of transportation risks. We are committed to carefully reviewing any limitations and exclusions with you and, by speaking with the insurance company, eliminate or modify them when the need arises.
Transportation & Trucking Industries Served:
3PL – Brokers
Transportation & Trucking Coverages:
Non Trucking Liability (Bobtail)
Collision, Comprehensive, Specified Perils
Personal Effects for Drivers
Motor Truck Cargo – Contingent Cargo Legal Liability
Wetness and Dampness
Loading and Unloading
Pollution Clean Up
Earned Freight Charges
Warehouseman’s Legal Liability
Electronic Data Processing
Umbrella and Excess
Employment Practices Liability
Port Terminal Coverage
Marine Hull and P&I
Professional Liability Examples
Failure to follow shipper’s instructions
Incorrect quotation of Freight Charges
Late Delivery caused by your Negligence
Negligent selection of a Trucker
Misdirection of Freight
Freight lost in Transit
Freight Stolen during Transit
1st Part – Employee Theft