Western Truck Insurance Services

A form of Insurance designed to protect Owners and Operators’ businesses from a wide variety of liability exposures.  These exposures could include liability arising out of accidents resulting from the premises or the operations of an insured, products sold by the insured, operations completed by the insured, and contractual liability.

General Liability insurance is the first major layer of protection for claims of bodily injury or property damage against your business.  General Liability covers you, but it also covers many others involved in your business, such as:

• If you have a joint venture or partnership, all of your partners, members and their spouses are protected if they are sued for something they do in an official capacity related to your business
• If your business is a corporation, your policy covers all of your business executive officers, stockholders and directors while they are acting in their official capacities
• If you have subsidiaries, your policy liability coverage extends to any subsidiary where you own at least 50 percent of the stock
• Your employees are also protected from claims that result from actions they take in their capacity as employees.
• If you have a written agreement to indemnify a person or organization, such as a vendor, that person or organization would be protected against liability claims for property damage or bodily injury as a result of selling or distributing your products
• Anyone legally associated with your business, including volunteers working under your direction, are covered for liabilities that result from the work they do for you, and for the use or maintenance of your property that is in their care

What GL Insurance Provides

• Bodily Injury
  – Covers Medical Costs
  – Loss Of Services
  – Court Awarded Compensation for deaths that result form Injury.
• Property Damage
  – Physical damage to the property or
  – Loss of use of the property

Coverages

General Aggregate - limit that will be paid during any one policy period.
Occurrence - limit for the sum of damages and medical expenses because of all bodily injury and property damages arising out of any one occurrence.
Products & Completed Operations Aggregate -  limit for damages because of bodily injury and property damage.
Personal & Advertising Injury - limit for the sum of all damages because of all  personal and advertising injury sustained by any one person or organization.
Damage to Rented Premises - limit for damages because of property damage to any one premises while rented to you, or in the case of fire, while rented to you or occupied by you with permission of the owner.
Medical Expenses - limit for all medical expenses because of bodily injury sustained by any one person.

Rating

There are four main ways to rate General Liability:

• Trucker’s Payroll
• Gross Receipts
• Number of Units
• Area (square feet)

Excess Liability

• Insurance that is excess over any other insurance, whether it is primary, excess, contingent or on any other basis.
• Fire, Extended Coverage, Builder’s Risk, Installation Risk or similar coverage for your work
• Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner
• Insurance purchased by you to cover your liability as a tenant for property damage to premises rented to you or temporarily occupied by you with   permission of the owner

When this insurance is excess, there will be no duty to defend the insured against any suit if any provider of other insurance has a duty to defend the insured against that suit. If no provider of other insurance defends, we will undertake to do so, but we will be entitled to the insured’s rights against all those providers of other insurance.

• When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:
• The total amount that all such other insurance would pay for the loss in the absence of this insurance
• The total of all deductible and self-insured amounts under all such other insurance.
• We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision.

It is common practice in the trucking industry for truckers to use trailers belonging to others in the normal course of their business. All of the ISO Coverage Forms (Business Auto, Truckers, Motor Carrier) extend Liability Coverage for nonowned trailers while attached to a covered auto.

Truckers however are often responsible for not only liability, but also for any physical damage that occurs to trailers of others while in their possession. Physical Damage Coverage for non-owned trailers is not inherent in the ISO coverage forms which exclude liability for property of others while in the insured’s care, custody or control. This coverage must be added, and is occasionally referred to as “bailee coverage” - a bailee being “any individual or entity which holds property of another”, the property in this case being a trailer.

There are three common solutions to providing physical damage for non-owned trailers:

1. Trailer Interchange Coverage: Prior to deregulation of the trucking industry, authority involved specific geographic areas only, and trailer interchangeagreements between truckers were commonplace. These agreements are much more rare today, and few currently exist outside of the UIIA (Uniform Intermodal Interchange and Facilities Access Agreement). There is a specific Covered Auto Symbol for use with the ISO Truckers and Motor Carriers Coverage Forms to provide Trailer Interchange Coverage, and the coverages and exclusions are a part of the insuring agreement. Trailer Interchange Coverage does extend to all liabilities an insured has for damages to a trailer while in his possession - it does not require that thetrailer be attached at the time of loss. It also includes “a container” under the definition of a trailer, so is properly used for intermodal operations where the equipment interchange often includes both a trailer chassis and a container. Trailer Interchange Coverage however requires that a “writtentrailer or equipment interchange agreement” be in place at the time of loss, so may not extend to all situations when a trucker has a non-owned trailer inhis possession.
2. Non-Owned Trailer Physical Damage: Normally this is structured by the insurance carrier including as a covered auto “any non-owned trailer while attached to a covered (or scheduled) power unit”, and listing a maximum physical damage coverage amount for these non-owned trailers. The advantage of this approach is that it does not require a written agreement for coverage to apply. Handshake, verbal, and informally written agreements are commonplace between truckers, or between truckers and shippers, and Non-Owned Trailer Physical Damage Coverage is broad enough to encompass the insured’s liability for all of these situations, as well as those for which there are formal written agreements. It is worth noting however that coverage under this approach is restricted in the same manner that the policy’s inherent liability coverage for non-owned trailers is restricted - the trailer must be attached to a covered power unit at the time of loss.
3. Hired Auto Physical Damage:  This coverage extends to trucks, tractors and trailers that are leased, hired, rented or borrowed by the insured. Like Trailer Interchange Coverage, Hired Auto Physical Damage applies based on the insured’s liability, and does not require that the trailer be attached at the time of loss. Long-term trailer leasing exposures are more properly covered through other mechanisms, however short term exposures may be handled through this coverage. Normally the policy should also contain Hired Auto Liability Coverage, and the insured must keep a record of the number of vehicles hired, and the number of days that the coverage was used, as this coverage is subject to audit at the end of the policy term. Pricing is typically based upon the estimated cost of hire for the upcoming term, adjusted by annual audit, so if this approach is used to cover nonownedtrailer physical damage exposures, an “if any” rating approach would not be appropriate when actual exposures exist - the anticipated cost of hire must be used as the rating.

TRAILER INTERCHANGE

 Trailer Interchange (TI) insurance provides physical damage insurance for trailers being pulled under a trailer interchange agreement (which transfers a trailer from one trucker to another in order to complete a shipment). Since these trailers are not owned by the driver, they are not covered by the driver’s insurance. TI provides physical damage insurance for non-owned trailers damaged by a covered peril while in the driver’s possession under a written trailer interchange agreement. Liability insurance must be in place to be eligible for TI insurance. TI is currently only available for tractors or pickups and there must be at least one trailer, owned or not owned, listed for each tractor .

Since the exchanged trailers are not owned by you, they require separate insurance coverage because they are not covered under your regular Physical Damage insurance.

This is essentially Physical Damage insurance for non-owned trailers. This insurance protects you if the trailer is damaged by collision, fire, theft, explosion or

vandalism.

Who Needs Trailer Interchange Insurance?

If you have a trailer interchange agreement, you need Trailer Interchange insurance to protect you while you’re in possession of a container or trailer that you don’t own.

A trailer interchange agreement is a contract that arranges to transfer a trailer from one trucker to another in order to complete a shipment. Typically, the trucker in possession of the trailer is responsible for paying any damages that are incurred while they have the trailer.

Limits, Deductibles and Other Details:

With Trailer Interchange insurance, you must select both a limit and a deductible. The limit is a single amount that describes how much your insurance company will pay if you use this coverage. The deductible is the amount that you agree to pay out of pocket to help with the repairs or replacement.

Trailer Interchange Coverage Example:

You’re hauling an exchanged trailer and you pull off the highway to refuel. While you’re inside grabbing a bite to eat, your truck is stolen.

Since you don’t own the trailer you were hauling, your regular Comprehensive insurance or Property Damage insurance won’t pay for the stolen trailer. Instead, your Trailer Interchange insurance would protect you.

If you selected a limit of $20,000 and a deductible of $1,000, you would pay the first $1,000 toward replacing the stolen trailer and your insurance would pay up to $20,000 toward the replacement.

If the trailer was worth more than $20,000, you would be responsible for paying the difference. If the trailer was less than $20,000, then your insurance would cover the full cost after your deductible.

Exceptions and Restrictions:

The trailer in question must be in the insured person’s possession under a written trailer interchange agreement.

You also must purchase Liability insurance to be eligible for Trailer Interchange insurance.

Trailer Interchange insurance is currently only available for tractors and pickups. Other vehicle types are not currently eligible for Trailer Interchange insurance.

There must be at least one trailer, owned or not owned, listed for each tractor and/or pickup.

State Specific Details

Trailer Interchange insurance is not available in the state of Virginia.

Requirements for UIIA Equipment Providers for Trailer Interchange:

Many UIIA Equipment Providers require that Motor Carriers maintain a trailer interchange policy covering physical damage to non-owned equipment with varying limits depending on the Equipment Provider. Please note that the limits required for trailer interchange are shown in US Funds so if the policy being provided is in Canadian Funds the limits must meet the equivalent of the US Fund limit shown. The limitfor trailer interchange must be shown on the certificate of insurance. If the policy limit is Actual Cash Value, this must be noted on the certificate.

Trailer Interchange coverage that is required by Equipment Providers must cover the physical damage to non- owned equipment (including containers, chassis and trailers while in the motor carrier’s care, custody or control).

Acceptable wording for Trailer Interchange is as follows:

Trailer Interchange

Trailer Interchange physical damage

Non-owned physical damage

Bailees – this can be accepted if it does not reference hired auto physical damage.

The endorsement CA23-13 is not acceptable for trailer interchange unless it covers comprehensive and collision in addition to fire and theft. The endorsement must indicate that both comprehensive and collision are covered before this endorsement is acceptable.

The wording “damage to non-owned automobiles in the insured’s care, custody and/or control is also acceptable.

Operators of commercial vehicles, such as truckers, need a number of insurance products.

Automobile Physical Damage insurance covers the damage to, disappearance, or destruction of actual automobiles and/or their equipment, such as tractors, trailers or semitrailers, trucks, or private passenger types of vehicles. Equipment does not include personal effects (clothes, eyeglasses, etc.)

Covered autos are determined by designation symbols that must be tailored to whether the automobile that is to be insured is owned, rented, leased, hired, or borrowed and the type of vehicle. Premiums usually depend upon the type and age of the vehicle, coverages chosen, garaging location, driver information, deductibles chosen, and loss experience

Such coverage is divided into two major components “collision” and “all perils other than collision.” Collision covers striking another object (including other vehicles) and overturn of the vehicle.

Comprehensive:

Comprehensive or “All perils other than collision” include loss by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, falling objects, or the sinking, burning, collision or derailment of any conveyance transporting the auto. These coverage’s can be purchased on an all inclusive or comprehensive basis.

Specified Perils:

Written on a basis where each peril is specifically described (called named peril or limited specified causes of loss.) Which are listed on the policy page under Section IV – Physical Damage Coverage.

Excluded Perils:

In both cases there are some perils which are excluded from coverage.

Need help with your commercial truck insurance? Contact Western Truck Insurance now.

Download: Form MCS-90 – Financial Responsibility for Motor Carriers

Financial responsibility means having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirement. Public liability means liability for bodily injury, property damage and environmental restoration.  Environmental restoration means restitution for the loss, damage or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials of liquids.

The MCS-90 Endorsement;

Background:

The MCS-90 is a result of the Motor Carrier Act of 1980, carrier deregulation was a part of a sweeping deduction in price controls, entry controls and collective price setting in  US transportation that started in the 1970’s and ended when President Carter signed it into law on 7/1/1980.

It was envisioned to be a sweeping de-regulation of the trucking, railroad and airline industries to remove 45 years of excessive & inflationary Government restrictions and red tape and to have an anti-inflationary effect to reduce consumer costs and to conserve hundreds of millions of gallons of fuel.

Congress meantime became concerned with increased truck traffic & non-conformance with trucking regulations and began a debate (of course) to address these concerns.  At the same time,  the DOT conducted a random roadside inspection of commercial vehicles traveling on I-80 in Pennsylvania and the results were pretty staggering.  More the HALF of the commercial vehicles were placed out of service due to safety violations.

As a result of the debate and the informal study, Congress passed the MCA of 1980 (the Act) which by 1990 resulted  in the number of licensed carriers exceeded 40,000 – more then double the number in 1980.

The MCS-90 Endorsement: No Coverage? No Problem!

In order to get the trucking & insurance industries compliant with the Act’s mandated levels of financial responsibility, Congress created the MCS-90 endorsement.  It is essentially an endorsement that makes the insurer a surety to the public.

The Act requires the MCS-90 endorsement to be attached to ANY liability policy issued to motor carriers operating commercial vehicles that are transporting property in interstate or foreign commerce. (49 C.F.R. 387.3, 387.7)

The form is attached to a truckers coverage form, commercial auto form or business auto policy, depending on the form used by the insurer.  Usually, when a loss occurs, the motor carrier’s vehicle is listed in the declarations or is otherwise covered by the policy and the insurance contract itself provides the necessary coverage to protect the public.  Occasionally, as a result of underwriting errors, policy terms, insolvency or illegal trucking operations, a vehicle will have no coverage and the MCS-90 endorsement is triggered.

Policy Issues:

The purpose of the endorsement is to ensure adequate levels of insurance in the event of an accident involving a member of the public on the environment.  The MCS-90 creates a surety-ship by the insurer to protect the public when the insurance policy to which the MCS-90 is attached otherwise provides no coverage to the insured. (Canal Ins Co v Distribution Servs., Inc. 5th Cir. 2001)

In effect, the endorsement shifts the risk of loss for accidents occurring in the course of interstate commerce away from the public by guaranteeing that an injured party will be compensated even if the insurance carrier has a valid defense based on a condition in the policy. So Coverage Defenses DO NOT APPLY – the insurer is ultimately on the hook for any final judgment.

The MCS-90 does not however create any obligation on the part of the insurer to defend it’s insured for claims not covered by the policy, however a failure to defend may result in a default judgment and then the MCS-90 endorsement creates absolute liability on the part of the insurer to satisfy the judgment up to the policy limits listed on the endorsement.

Subrogation is Allowed:

If the insurer ultimately pays on a judgment where no coverage exists, there is a clause in the endorsement that “the insured agrees to reimburse the company for any payment made on account of any accident, claim or suit involving a breach of the terms of said policy, and for any payment that the company would not have been obligated to make under the provisions of the policy except for the agreement contained in the endorsement” (49 C.F.R. 387.15)

In theory the insurer can recover from the insured but they cannot commence recovery efforts until after they make payment, which is often years after the loss and the insured can file bankruptcy or transfer it’s assets to avoid paying any judgment the insurer receives.

Some MCS-90 Interpretations:

The MCS-90 creates a duty to indemnify an insured for non-covered autos operated under the motor carrier’s authority  (John Deere Ins. Co v Nueva, 95h Cir 2000)

Without a lease between an owner/lessor and motor carrier/lessee, an insurer will not be required to indemnify the motor carrier for any judgment against the owner/lessor  (Jackson v O’Shields, 5th Circ 1996)

The obligations of an insurer to indemnify it’s insured also extend to any liability deductibles or self-insured retentions the insured may carry.

( David N Nissenberg, The Law of Commercial Trucking: Damages to Persons and Property 3rd Ed 2003)

Work Related Accidents Impact…

• You and your net worth
• Your time and focus
• The company you have built and its Stakeholders
• Employees and their families
• Lease Operators and their families

Risk Management is Mission Critical

• What happens if an employee sustains a work-related injury or worse?
• What happens if a lease operator sustains a work related injury or worse?
• How is your exposure as a business owner different in each scenario?

Lease Operator

The Exposure…
The reality of occupational accident exposure is that if Lease Operators do not have coverage, then a serious injury will result in a claim made to the Motor Carrier’s workers compensation policy. Successful or not, you can count on the claim being made.

The Facts…
Occupational accidents and injuries can have devastating effects on an organization without proper protection.  If there’s enough money involved, personal injury lawyers will challenge the financial responsibility of all involved parties.  The related legal defense costs alone can severely impact operating profits and even drive many businesses into bankruptcy.  The coverage to reduce the exposure is both prudent and affordable.

What are the options?

Option #1:
Leave everyone exposed to a “parade of horribles.”

Option #2:
Agree that your lease operators are statutory employees and enroll them in your workers comp plan. This is the most expensive solution and may cause you to absorb the full onslaught of accompanying payroll taxes (perhaps even retroactively).

Option #3:
A Group Occupational Accident Plan for your lease operators allows you to pass through the related costs to them at a group rate, protecting them with 24/7, 48-state coverage, including survivor benefits, and defends your independent contractor agreement with them. Moreover, if you lose in a challenge by a court of law or workers comp review board, the Occupational Accident policy for the injured lease operator can be designed to convert to a ‘full blown’ workers comp policy and eliminate your company’s related contingent exposure.

Key GAIC Advantages for Lease Operators

• Coverage limit issues, i.e., Plan A, B, C, or D;
• Commencement Period

1. GAIC gives 90 days to report a claim, treatment can begin when necessary
2. Competing policies say treatment must begin in 90 days

• Sub-limits: e.g., most competitors have $ 1,000 max limits for chiropractic care, ambulance or air flight, physical therapy, & other rehab treatment GAIC does not impose the sub-limit Accidents must be reported within 90 days, benefits can begin immediately upon reporting or at any time thereafter, and are not subject to a 90 day commencement period…and Accident benefits include dental where most competitors do not
• When a $ 2mm CSL per occurrence aggregate for any one accident is selected, $ 1mm is set aside specifically for medical expenses, & $ 1mm for death, disability, & rehabilitation.
• GAIC assigns a Nurse Care Manager to help insured deal w/ Psycho-Social issues
• Temporary and Long-Term Disability Income benefit is based on Schedule C income and retro to day 1 (most competitors impose a 7 day grace period) and applies to the definition of “Under the course of doing business,” which includes maintenance, cleaning, & other misc activities…so coverage is not limited to just driving and loading/unloading
• The $ 1mm maximum accident medical benefit is annual, not a lifetime one
• Death benefits apply if death occurs within 2 years (instead of just 52 weeks) from the accident

Important Coverage Points for Fleets

• Major point:  to keep personal injury attorneys away and adverse decisions from workers comp review boards, fleets need to offer the most broad occupational accident coverage available
• GAIC does not impose Aggregate Limits on the Group Policy as do competitors…if a fleet has 100 drivers, each with $ 2mm Aggregate Limit, then GAIC’s exposure is $200mm.  A competitor will attempt to sell the same deal but put a $ 5mm or $ 10mm aggregate “stop loss” limit in
• Average length of disability with GAIC is 29 days, which is 9 to 14 days shorter than before the Nurse Care Manager benefit was introduced.
• Any expense not covered is a potential black hole liability
• GAIC’s policy limits are generally higher than competitors

1. Accidental death benefit pays $ 50K more ($ 300K vs $ 250K), i.e., the $ 2000/month survivor benefit pays for 125 months instead of just 100 months
2. Accidental Dismemberment pays $50K more ($ 300K vs $ 250K)
3. Paralysis benefit pays $50K more ($ 300K vs $ 250K)

• Contingent Liability Feature available to the Motor Carrier as part of the Occupational Accident plan…it defends the lease agreement if a lease operator accident claimant attempts to claim employee status & collect workers comp benefits…and it defends the company in a Court of Law or in a Workers Compensation Review Board…if you lose, the contingent liability feature will pay up to statutory limits of a Workers Comp Policy

Need more information or help? Western Truck Insurance can answer all of your risk questions and help protect you and your business.

Unlike private passenger type vehicles commercial trucking physical damage is often insured on a “stated amount” basis.

Physical damage premiums for private passenger type vehicles are ordinarily determined based on the original cost of the vehicle and its age.  This is practical largely because these vehicles depreciate in an easily predicted fashion.  Heavy commercial vehicles, however, are designed to outlast their engines.  Truck tractors, often traveling well in excess of 100,000 miles per year are designed to have their engines replaced regularly.  The value of the vehicle therefore is heavily dependent upon how recently the engine has been replaced.  A four year old tractor, for example, with a new engine, is worth considerably more than a similar four year old tractor with similar mileage and with its original engine.

Since it is more difficult to determine the worth of heavy commercial vehicles based on original cost and age, truck insurers have developed an alternative method, “Stated Amount” for providing physical damage coverage and determining premium.  The insured “states” the maximum vale of the vehicle and the premium is determined as a percentage of that value.  That percentage decreases as the deductible increases. 

In general lower valued vehicles pay a higher premium percentage than more valuable vehicles because damage that would be a partial loss on a high valued vehicle could be a total loss on an older, lower valued vehicle.

The insured does not automatically receive the stated amount in the event of a loss.  The amount paid is always the least of three possible values:

• The actual cash value of the vehicle at the time of the loss
• The cost of repairing or replacing the vehicle with one of like kind and quality
• The stated amount of insurance for the vehicle

Therefore the most that the insured could collect in the event of a total loss would be the stated amount. 

On a stated amount basis truckers must value their vehicles in advance.  At each renewal the values must be reevaluated.  Automatic coverage is made more complex because of the need for timely vehicle valuations.  Professional underwriters will require insureds to justify in advance valuations that differ significantly from average expectations.  A little time spent resolving these issues when the vehicle is initially insured can avoid serious claims settlement problems following losses.

Truck insureds and truck claims adjusters, however, both favor the stated amount approach.  They like the idea of having an automatic cap on the value of the vehicle.  It makes claims settlement negotiations less contentious.  It is also easier and more accurate to compare competitive quotes on a percentage of value basis.

Operators of commercial vehicles, such as truckers, need a number of insurance products.

Automobile Physical Damage insurance covers the damage to, disappearance, or destruction of actual automobiles and/or their equipment, such as tractors, trailers or semitrailers, trucks, or private passenger types of vehicles.  Equipment does not include personal effects (clothes, eyeglasses, etc.)

Covered autos are determined by designation symbols that must be tailored to whether the automobile that is to be insured is owned, rented, leased, hired, or borrowed and the type of vehicle.  Premiums usually depend upon the type and age of the vehicle, coverages chosen, garaging location, driver information, deductibles chosen, and loss experience

Such coverage is divided into two major components “collision” and “all perils other than collision.”   Collision covers striking another object (including other vehicles) and overturn of the vehicle.

“All perils other than collision” include loss by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, falling objects, or the sinking, burning, collision or derailment of any conveyance transporting the auto.  These coverages can be purchased on an all inclusive or comprehensive basis, or a basis where each peril is specifically described (called named peril or limited specified causes of loss.)  In both cases there are some perils which are excluded from coverage.

Excluded perils for which no physical damage insurance coverage is ordinarily provided include nuclear hazards, war or military actions, organized racing or demolition contests, wear and tear, road damage to tires, and damage to most electronic equipment not required for the operation of the vehicle.

Although not mandated by law, like automobile liability insurance, physical damage is ordinarily required by financial institutions that loan money to purchase automobiles.  Since the automobile is used as collateral for the loan, the lender needs to make sure that the collateral remains unimpaired.  The insured’s own equity in his or her vehicle is also protected.

There are ordinarily separate deductibles for the “collision” and “other than collision” coverages.  Deductibles are the portion the insured must pay in the event of a loss.

The amount of coverage is ordinarily limited to the cost of repairing or replacing the damaged or stolen property or its value less depreciation.  If an insurer pays a physical damage claim that is the fault of someone else then the insurance company upon paying the physical damage claim assumes the right to recover the cost from whoever caused the claim.

It seems that one of the more consistent areas of needed improvement for truckers, whether large fleet, small fleet or owner operators, is in the approach to claims reporting. This writer, who actively receives claims, has seen the gambit in claims reporting from well documented detail to virtually no information provided at all.

So what’s the big deal?  Why collect any information at all, especially if there will be a police report available anyway? The answer to these questions is not always obvious to the truck driver who is feeling threatened by the consequences, regardless of whether the accident was the driver’s fault.

Approximately 30% of truck accidents are never reported by truck drivers. Most of those “non-reports” are not-at-fault accidents and the drivers just “presume” the other party will take care of their own damages. Many, however, are the result of a driver either embarrassed about the incident or hopeful it will just disappear. Finally, quite a number of these non reported accidents are the result of the driver just not knowing what to do.

Accident reporting is simple. Just about every insurance company and/or agent provides an accident report form directly to the motor carrier or driver. That form is the basis for collecting information about the accident and all drivers should carry that form in their truck. It is the responsibility of fleet safety personnel to make sure the form is in all trucks and that drivers are continuously trained on how to complete it.

At the time of any collision, fire, theft, or other loss, the driver should take a deep breath and go into, what I call, “the data collection mode”. This should be a non-emotional, fact gathering, state of mind. There should be no admitting or blaming for wrong doing with other parties. The driver should immediately grab the accident report form and begin asking questions and documenting information.

The first, and most obvious, is to assess whether anyone is hurt including the other driver and anyone else involved. Assuming the other driver has not been hurt and can actively participate in obtaining details, he/she should get themselves, all other parties, and the vehicles out of harm’s way if at all possible.

Once safely out of danger, the driver should note the date, time, and specific location of the occurrence on the report form. Also write down the description of the other vehicles involved, license plate numbers, and note how many people were in other vehicles.  Again, document this information on the report form. Before the police arrive, the driver should courteously approach the other parties and invite them to assist by exchanging contact information including name, address, phone numbers, email addresses, and insurance information.   No discussion of who was at fault should occur as that only leads to everyone becoming defensive and uncooperative. If the driver has a camera, or phone equipped with one, it is advisable to take pictures of everything.

After exchanging information, the driver should clearly write out an honest description of what occurred along with a graphic diagram of the incident. Doing so will help everyone visually understand the nature of the verbal and written details. Once this has been completed, the fleet safety manager (if applicable), a representative from the insurance company, and/or the insurance agent should be contacted.

Generally, the biggest stumbling block we run into is with the driver not moving quickly to obtain the above information, and then when police arrive and separate the parties, it’s too late for the driver to obtain the much needed information.

Claims that are reported immediately and with complete information are almost always settled at a lower cost than those that are not reported quickly and with detail. All drivers should make sure they carry the claim report form in their vehicles at all times.    

You may not believe how many truck operations purchase their truck insurance coverage on the basis of lowest price. This practice, however, is not just the company’s fault, but also the fault of many truck insurance agents who supply coverage on the basis of lowest price. It is not only unbelievable, but also a dangerous approach to keeping you, your business and your family safe, both physically and financially. Apply the same rules to buying truck insurance as you would to buying any other product or service. When buying truck insurance, consider the following: 

Knowing what’s happening in the industry helps Western Truck Insurance Services remain a reliable resource to both clients and prospects. As a result, we are always eager to learn how things are going and what you think about DOT enforcement activities, fuel prices, and the effects of laws, rules, and regulations on your business.

As the market is constantly changing, Western Truck Insurance wants to make sure you get the best deal on truck insurance at your next renewal. Here is a step-by-step approach how we plan to help you.

• 60 days prior to your renewal date, call us to request an assessment of your situation and risk exposure. Be prepared to allow us to obtain your loss history and IFTA mileage reports. We will need to know the particulars about your business and how much you are paying for your truck insurance.
• Call your existing agent to inform them that you will be shopping your insurance this year and that you want to be straight forward about it. You want to make sure that you are getting the best price on your renewal quote. Also, let them know that you expect the renewal quote to be available for review at least one month before the renewal date. For emphasis, let them know that you have Western Truck Insurance also working on your behalf.
• The timing of when you receive your renewal quote speaks volumes about the agent and insurance company. If they are really working for you, they will get your renewal quote to you early enough for proper consideration. “Early enough” is 3 to 4 weeks before your renewal date. Once you receive your renewal quote, call us with the quote amount so that we have complete information to negotiate with. Insurance companies will compete for your business if they know what they are up against.
• When you get our quote amount, compare the two quotes noting all the differences. We will help you understand the various aspects to the quote. If our number is lower, take it to your existing agent and ask him to beat it. If our coverage levels are better, ask to match them.
• After you have given your existing agent a second chance, share this new number with us so we can go back to our underwriters and attempt to negotiate a better deal for you.
• Once you receive our number a second time, you will be ready to make an informed decision. Both brokers involved have been treated fairly and have had two chances to give you their best quote. A fair amount of conversation, analysis, and negotiation will have taken place between you and us and your existing agent by this point.

Consider all you have learned. How do feel about the advice you have received? When fully considering price, coverage levels, quality rating of the insurance companies, and your comfort level with the agents involved… which is the best deal?

• Make your decision and inform each party.

If you follow this approach, you will get the best deal around. Try it and see for yourself!