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COVERAGE DEFINITIONS
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Types of Transportation Insurance Coverages
Physical Damage insurance is coverage for your truck and trailer. Your premium is based on a percentage of the value of your equipment. This coverage is not required by law but if you finance your vehicle the lien holder will require it.
Primary Auto Liability insurance is required by federal regulations. Every carrier must carry liability insurance on every rig even on leased units. Liability insurance protects you when a third party is injured in an accident. Owner-operators should ask when leasing onto a company who will pay for their insurance - the company or from driver weekly settlements.
General Liability insurance protects the business for any property damage or bodily injury that might occur which does not involve a truck. This includes accidents at your place of business, advertising related and/or contractual risks.
Non-Trucking Liability insurance pays for an accident when the driver/truck is not under dispatch. The coverage is sometimes referred to as deadhead coverage or bobtail liability.
Non-Owned Trailer Liability coverage protects the trailer you are pulling for someone else.
Non-Owned Trailer Physical Damage coverage insures the trailer you are pulling for someone else in the event of loss. $20,000 is somewhat standard for trailers.
Trailer-Interchange Liability coverage protects a trailer you are pulling when there is an interchange agreement in force. For example with a steamship line.
Cargo Insurance covers damage/loss to freight in transit. This coverage can have many exclusions such as unattended vehicle, maximum theft limitations on target commodities such as garments, liquor, electronics and many others.
Terminal Coverage protects freight located at specified terminals in the event of loss. Usually there are time limitations related to this coverage. For example: 72 hours maximum per specified load. If the goods are stored longer than the terminal time you would most likely want to purchase Warehouse Legal coverage. This amount of coverage is dependent on the total amount of goods stored/docked/off-loaded at any one time.
Warehouse Legal coverage protects goods stored at specified locations in the event of loss. For example as relates to theft, fire, sprinkler damage. This amount of coverage is dependent on the total amount of goods stored at the location at any one time.
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