Commercial Trucking

Reasons for truckers general liability coverage

You might think that your auto policy will cover you, but that's not the case. General liability or a standard business owners policy (BOP) is applicable, but it won’t extend coverage to your unique needs. You’ll need additional protection for situations such as the following:

• You meet with a client on-premises. The client slips and falls from the loading area and then sues you for damages.
• Your driver makes a drop-off at a client location. Your driver and client get into an argument over the delivery being late. They yell accusations at each other in front of customers. Your client sues you for defamation of character and loss of business.
• You have a few guard dogs on-premises. One of the dogs bites a customer.
• Your driver parks the truck at your customer’s loading dock, and he uses the customer’s forklift to help unload pallets. He accidentally drives the forklift off the loading platform causing damage to the dock, other people and the forklift.
• Your driver causes bodily injury to another person while trying to defend her cargo shipment.
• You sell used truck parts to another driver. The other driver has an accident and blames it on the used parts you sold them. The trucker names you in a lawsuit.
• Your driver delivers the cargo to the wrong address and it's stolen before anyone realizes the mistake.
• You schedule shipments that don’t always include a return load. Your driver gets in an accident on the return, without a trailer attached.

Don’t confuse general liability coverage with your commercial or business auto policy, which usually covers damage that arises while operating a vehicle.

A different kind of insurance solution

Since the trucker general liability policies are written based on the way you do business, you might have to shop around. Truckers and motor truck liability policies offer a few endorsements to accommodate exposure areas. Here are a few situations (and insurance solutions) to think about:

• Completed operations coverage. You arrive on time, drop the shipment and return home. A little later, the customer claims that the goods were damaged because you didn’t stack the pallets correctly. The client sues you for damages, saying it was your delivery services that caused the loss.
• Key stop coverage. Your regular client requires crewless deliveries (clients aren’t present or it’s an after-hours drop) so your drivers use a key. They let themselves in, unload the shipment at your client’s business and leave. Your driver forgets to lock up and your client gets robbed. Your client files a claim against you for negligence because you failed to secure their property. Key stop coverage is also suitable for issues with misplaced keys.
• Bobtail coverage. Your routes include return runs without a trailer (dead heads). If your driver causes an accident on a run without a trailer, it could change how insurance coverage responds. Ask your insurance professional if you should require bobtail coverage from your contracted drivers.
• Non-trucking liability (NTL) coverage. You contract with drivers who use their trucks for personal use and off-hours. If they’re in an accident, truckers (or commercial) general liability won’t respond.
• Excess coverage. You can add excess coverage to your policies to increase the limits on a specific line of insurance. Unlike commercial umbrellas, excess coverage is tied to a particular type of insurance and doesn’t extend past multiple policies. For example, your driver stops to help another trucker stranded on the side of the road. They repair the truck, and both are back on the road. Later the other driver causes a multi-car accident due to mechanical failure. Your company is named in a lawsuit for negligent acts performed by your driver; this is known as vicarious liability. Excess liability can help with legal fees.

A word on the phrase "excess coverage"

Excess coverage can also mean you have coverage under a contractual agreement between you and another business. Excess coverage (second to respond) kicks in when the primary coverage (first to respond) runs out, which means it’s in excess of the primary coverage limits.

This coverage is determined by interpreting the language of the work contract and the work duties involved against the insurance policies. It can get complicated, so it’s essential to understand the details.

The bumpy road of supply chains

Also, consider the stops along your logistics and supply chain routes. Your client contract agreements and driver employment (contracted, employee or for-hire) can create coverage gaps for you.

For example, if you swap out trailers or other equipment with a different driver on the route, you might need to consider added coverage for the trailer or driver. Your trailer might be covered under your auto policy (trailer interchange), but your truck is not. You’ll need to know which coverage will respond (preferably both will) and you should make that clear in coverage and contracts.

You don’t want to be without help if the claim involves the trailer when it’s detached from your truck or for circumstances involving another driver. You can still be held liable. Check with your insurance professional to be sure.

Coverage exclusions and qualifications

Insurance companies have a host of exclusions regarding the types of coverage risk they’ll accept. If your trucking operation transports hazardous materials or freights long-hauls, you’ll have a smaller insurance pool to choose from.

Your insurance professional’s industry knowledge could save you a lot of shopping time. They’ll match you with insurance companies that take on your risk, and you’ll also have pro advice to help you through the confusing parts.

Contact your insurance professional

Get on the horn with your insurance professional about trucker liability insurance. They can help you steer clear of the liability risk roadblocks with a customized trucker and motor truck liability policy. For extra liability protection, ask about motor truck cargo insurance, non-trucking liability or supply chain insurance, too.