Insurance

[GrassHopperr]

I just spoke to a local state farm insurance agent and he quoted me commercial insurance policy for driving anywhere in the United States and Canada. I also mentioned to him that I was using the van for delivery. 1 million in liability, Full Coverage, Comprehensive, medical payments 25k, uninsured motorist 100/300/100. (cargo insurance covered by carrier) When I sign the contact I will have them sign and notarize a document prepared that I'm covered in the United States and Canada under commercial insurance with the stated above coverages for commercial cargo delivery. When it comes time to sue, they can look to the agent that wrote the policy. It is their responsibility to KNOW and write the customer with correct coverages and to be able to say YES and NO. Otherwise it is fraudulent activity and falsifying uninformative information that is undisclosed which is illegal and deceptive.

I don't wish bad upon my worst enemy..

I guess there's only one way to find out if your right....



State Farm EXCLUDES Expediters!

 

[davekc]

I just spoke to a local state farm insurance agent and he quoted me commercial insurance policy for driving anywhere in the United States and Canada. I also mentioned to him that I was using the van for delivery. 1 million in liability, Full Coverage, Comprehensive, medical payments 25k, uninsured motorist 100/300/100. (cargo insurance covered by carrier) When I sign the contact I will have them sign and notarize a document prepared that I'm covered in the United States and Canada under commercial insurance with the stated above coverages for commercial cargo delivery. When it comes time to sue, they can look to the agent that wrote the policy. It is their responsibility to KNOW and write the customer with correct coverages and to be able to say YES and NO. Otherwise it is fraudulent activity and falsifying uninformative information that is undisclosed which is illegal and deceptive.

Why even get caught up in that? Have the agent call John or Shelley or visa/versa and explain your policy. My personal opinion is, you really need to know your exposure. If you are driving a van, you don't likely have the resources to take on a insurance carrier even if you think you might be right.
No need to complicate the simple. Make the call.

 

[GrassHopperr]

Hi guys....Shelly here...

....I see you’ve been busy while I was away at the Expo & Casino Night.

So…I just made another phone call to State Farm Commercial Auto Underwriting to see if there had been any changes from my last conversation with them.

They once again clarified that not only does State Farm not write long haul trucking for hire, they do not write short haul trucking for hire…much less Expediting. There are no exceptions.

I am told that anyone hauling short hauls with one entity, ala appliance or furniture delivery is how these usually slip through. I am also told that any claims outside of 50 miles and not hauling for one entity, ala Expediters… will be investigated and challenged.

I have addressed many of these misconceptions in my past blogs.

Trucking insurance is in a “hard market” right now. This simply means insurers are not big on trucking risks. They are re-rating and rethinking coverage, basically because losses have exceeded premiums.

Other insurance lines such as auto, home and especially life are profitable.

Big investors like to place IRA’s and retirement accounts in steady safe insurance stocks. When a segment like trucking is not a good return, they influence the direction many companies go.

Not only are there now less insurance companies willing to offer products for trucking, no company out there that “sounds” like a personal auto or home insurance company…writes Expediters.

All insurance rates in trucking have been rising, with tightening underwriting standards. Even good, solid large trucking companies are experiencing increases as all this occurs

It is not a monopoly, it is simple economics. If there was profit in it, more would get in, not out.

Premiums for the correct coverage can vary dramatically by state, driving record, age and insurance credit score.

The Owner Operators seeing the highest rate increases are Cargo Vans and Sprinters hauling for Multiple Motor Carriers. This is because the losses have been higher than Straights and Tractors, and there is added exposure and specific broadening endorsements of coverage are required for the structure to work and “trigger” correctly at the time of loss.

For the record, CIS is an independent agency. We provide our clients with coverage from 14+ insurance companies. We have access to any insurance provider willing to accept Expediting risks and provide the specific coverage needed.

For any Motor Carrier out there accepting insurance from companies that “sound” like personal auto/home insurance...you are at risk when that Owner Operator’s policy does not trigger as you had hoped.

Your MCS90/91X will pay the Liability claim, then the insurance provider who paid that claim for you will sue and win because you did not have the correct insurance in place as promised in your insurance contract you signed with them as required by FMCSA.


Allstate, Amercian Family-AMFAM, Auto Owners, Erie, Farmers, GEICO, Grange, State Farm, Nationwide and more. Companies that “sound” like personal auto and home insurance do not insure the operations of Expediting for coverage and they do not offer the special endorsements needed for their policies to apply as needed after a loss.

When I verify which insurance companies insure what, I do not contact agents to verify whether they will insure an Expediter.

I personally contact the VPs, Underwriters and Product Managers of the insurance company to verify their coverage and risk appetite on a regular basis. I, too, would like to have more options for my Owner Operators.

Just because someone sold you an auto liability and cargo policy does not mean it will apply as needed after a loss. Agents do not pay claims, and I highly recommend that you get it in writing should an Agent promise you that they will pay an Expediting Claim as Primary- Non-Contributory, with Care, Custody and Control on an Unlimited Radius.

However, as some seem to believe they have a solid grasp on trucking for hire insurance, I wish you well.

It’s this kind of chatter that has Load Providers now requiring Gold and Platinum standards of insurance coverage from the Motor Carriers they work with. They’ve made it clear they will no longer tolerate their exposures to unpaid losses when their customers are not reimbursed for what should be simple claims payment after an accident.

TEANA-VOI certification of Motor Carriers was developed at the request of Load Providers to assist them in vetting the insurance coverage of Motor Carriers and their Owner Operators. VOI helps protect the entire transport chain from these exact kinds of exposures in this thread.

We will continue to look for the insurers willing to offer the coverage you need at the best price. We monitor insurance companies, make no mistakes…I am always looking.

But coverage that will not apply properly after a loss is like no coverage at all. Please be safe and work with responsible Motor Carriers.

Couldn't agree more. 100% accurate and well put.



There is a lot of drivers out there who are not insured properly...

 

[jelliott]

I just spoke to a local state farm insurance agent and he quoted me commercial insurance policy for driving anywhere in the United States and Canada. I also mentioned to him that I was using the van for delivery. 1 million in liability, Full Coverage, Comprehensive, medical payments 25k, uninsured motorist 100/300/100. (cargo insurance covered by carrier) When I sign the contact I will have them sign and notarize a document prepared that I'm covered in the United States and Canada under commercial insurance with the stated above coverages for commercial cargo delivery. When it comes time to sue, they can look to the agent that wrote the policy. It is their responsibility to KNOW and write the customer with correct coverages and to be able to say YES and NO. Otherwise it is fraudulent activity and falsifying uninformative information that is undisclosed which is illegal and deceptive.

In my opinion....that is a very risky and not well advised business strategy. Especially considering you know the truth up front.

 

[CharlesD]

I've been with CIS and now with Brands. Both of these folks know their stuff. I wouldn't mess around with anyone else.

 

[jelliott]

T270 honestly this is exactly why more and more shippers and carriers such as ourself do not want to work with many running the multi carrier model. You place yourself, your carrier and the shipper or carrier tendering your carrier the load at direct risk. It is unethical and technically fraud if you do so knowingly. It gives our industry a bad name and only damages those who are trying to run the multi carrier model properly. Don't get me wrong some are doing it right. But many more are knowingly cheating. So what happens. Reputable carriers and shippers end up using none of them out of caution.

 

[Moot]

When I sign the contact I will have them sign and notarize a document prepared that I'm covered in the United States and Canada under commercial insurance with the stated above coverages for commercial cargo delivery.

Your agent may be unaware that State Farm doesn't cover vehicles involved in interstate transportation. Presenting your agent with your prepared document should raise a red flag, unless he/she is a moron. If the agent does sign your document, make sure you haven't signed/purchased a rider of some type that covers you at extra cost or exempts State Farm from paying on an out of state claim.

Also, if someone in your carrier's safety department is aware of State Farm's policy concerning coverage of vans used in interstate transportation they may not accept you.

 

[Daffyduck528]

Just to clarify something. The inland marine policy covers equipment and such that you transport for your company that your company owns, leases or rents. When I owned my sound company I had a $50,000 policy for that. It is commercial insurance and if you get in a wreck they'll cover it but the second they find out it's not your stuff your screwed. That's why they want to know specifically what you carry. They assign a value to certain items then give you a general pool of money for all the little things.

Bottom line: you kill someone from your cargo with this insurance - you are done. Probably with a side of jail for insurance fraud as well.

 

[T270_Dreamin]

T270 honestly this is exactly why more and more shippers and carriers such as ourself do not want to work with many running the multi carrier model. You place yourself, your carrier and the shipper or carrier tendering your carrier the load at direct risk. It is unethical and technically fraud if you do so knowingly. It gives our industry a bad name and only damages those who are trying to run the multi carrier model properly. Don't get me wrong some are doing it right. But many more are knowingly cheating. So what happens. Reputable carriers and shippers end up using none of them out of caution.

What insurance company do you guys use over at load one. Is it in house like panther or are drivers required to have their own?
Running for multi carriers is becoming something from the past from what I've noticed. All the companies I've spoken to recently all want exclusive use. If you you're in need of a Sprinter over at load one I'm sure we can make arrangements to get the proper insurance, we are trying to get a decent carrier to sign on with. Driver is capable of 2000-3000 miles per week no complaints and ready to go the next week

 

[OntarioVanMan]

T270 honestly this is exactly why more and more shippers and carriers such as ourself do not want to work with many running the multi carrier model. You place yourself, your carrier and the shipper or carrier tendering your carrier the load at direct risk. It is unethical and technically fraud if you do so knowingly. It gives our industry a bad name and only damages those who are trying to run the multi carrier model properly. Don't get me wrong some are doing it right. But many more are knowingly cheating. So what happens. Reputable carriers and shippers end up using none of them out of caution.

John..Progressive now has a "change of policy" notification option...for $20.00 they will automatically e-mail the named carrier anytime there is a change in the policy.....I think that must be some of Shelleys work....I think this goes along with Teana's new VOI program...

 

[westmicher]

I don't wish bad upon my worst enemy..

I guess there's only one way to find out if your right....



State Farm EXCLUDES Expediters!

My State Farm agent writes all of my personal policies, and would write my $printers or Promasters as long as they didn't leave Michigan. The moment I mentioned interstate, they bailed on me like you wouldn't believe. State Farm does not cover interstate Expeditors.

 

[jelliott]

What insurance company do you guys use over at load one. Is it in house like panther or are drivers required to have their own?
Running for multi carriers is becoming something from the past from what I've noticed. All the companies I've spoken to recently all want exclusive use. If you you're in need of a Sprinter over at load one I'm sure we can make arrangements to get the proper insurance, we are trying to get a decent carrier to sign on with. Driver is capable of 2000-3000 miles per week no complaints and ready to go the next week

Our units are covered under under liability policy (underwritten by Travelers) and they are covered under our cargo coverage. An owner operator just needs NAL or Bobtail insurance and physical damage if they need it. We offer it through our provider or refer our people to CIS for coverage.

We currently have a waiting list 8 to 10 months for new sprinters so we wouldn't have a quick solution for you. I agree, I think the multi carrier model is fading quickly.

 

[jelliott]

John..Progressive now has a "change of policy" notification option...for $20.00 they will automatically e-mail the named carrier anytime there is a change in the policy.....I think that must be some of Shelleys work....I think this goes along with Teana's new VOI program...

It is a really good tool. It helps prevent people from getting coverage and a proper certificate, then going back and lowering the coverage limits the next week. Amazing how many we have caught doing this.

 

[T270_Dreamin]

Our units are covered under under liability policy (underwritten by Travelers) and they are covered under our cargo coverage. An owner operator just needs NAL or Bobtail insurance and physical damage if they need it. We offer it through our provider or refer our people to CIS for coverage.

We currently have a waiting list 8 to 10 months for new sprinters so we wouldn't have a quick solution for you. I agree, I think the multi carrier model is fading quickly.

How would I get in touch with travelers for a quote? CIS quoted us $7800 a year which is too high! The budget is about $4800-$5200 per year. It is good to hear that you use someone else besides progressive as some mentioned earlier in this thread they have the monopoly on commercial trucking insurance.

I also just emailed this company. I must say it has been quite the search.

http://www.expeditersinsurance.com/quote.html#nogo

 

[jelliott]

A number of companies write trucking insurance. The problem is very few will write very small fleets or single units due to the risk. Small policies are great risk due the law of averages with numbers. It is often not about the individual drivers record.

Looking at that website and the one's connected to it.....ahhhhhh......ahhhhh......

 

[GrassHopperr]

I second the question above. I'm currently out of service due to the insurance issue. I don't want to put myself at risk out there but I will not pay 14k a year. That was the best offer CIS found for me. Clean driving record but my young age screws me, and I'm 24 years old. Because of that progressive wanted 20k a year.

 

[OntarioVanMan]

How would I get in touch with travelers for a quote? CIS quoted us $7800 a year which is too high! The budget is about $4800-$5200 per year. It is good to hear that you use someone else besides progressive as some mentioned earlier in this thread they have the monopoly on commercial trucking insurance.

I also just emailed this company. I must say it has been quite the search.

ExpeditersInsurance.com

keep in mind if you have an older model to keep the replacement value down reasonable...when it gets total most insurers have the option to total it out at 50% of the appraised value....you not see one cent if you over value the van...

 

[OntarioVanMan]

I second the question above. I'm currently out of service due to the insurance issue. I don't want to put myself at risk out there but I will not pay 14k a year. That was the best offer CIS found for me. Clean driving record but my young age screws me, and I'm 24 years old. Because of that progressive wanted 20k a year.

take a year off or drive for someone till that magic age of 25....

 

[OntarioVanMan]

A number of companies write trucking insurance. The problem is very few will write very small fleets or single units due to the risk. Small policies are great risk due the law of averages with numbers. It is often not about the individual drivers record.

Looking at that website and the one's connected to it.....ahhhhhh......ahhhhh......

whats the ahhhhhh ahhhhhh about?

 

[GrassHopperr]

take a year off or drive for someone till that magic age of 25....

That magic number for a commercial insurance is 30 I believe....