Insurance question

EYDJ · Jun 8, 2019

Explain to me why it’s necessary to carry 1,000,000/300,000 when the federal regulations only require 300,000/100,000 for a vehicle under 10,000lbs. I understand for commercial vehicles over 26,000lbs.
What if you have your own Operating Authority, will not be traveling past a 500 mile radius, and will be dealing directly with potential shippers? Wouldn’t 300,000/100,000 suffice?

Grizzly · Jun 8, 2019

Have you asked the folks at CIS this question? Their reply was ..... ??

What's the damage? How much per yr?

Side note, I think you answered brokecanadian's questing regarding insurance ...

Worn Out Manager · Jun 8, 2019

The liability involved when operating a commercial vehicle is higher than non commercial vehicle. Carriers and brokers want to reduce their risks by making sure the trucks carting their freight provide that cushion first before their own umbrella policies kick in. What business plan has you staying in a 500 mile area?

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EYDJ · Jun 8, 2019

Worn Out Manager said:
The liability involved when operating a commercial vehicle is higher than non commercial vehicle. Carriers and brokers want to reduce their risks by making sure the trucks carting their freight provide that cushion first before their own umbrella policies kick in. What business plan has you staying in a 500 mile area?

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I have my own authority so I am the Carrier. I am also in a Nissan NV high roof. It is not over 10,000lbs therefore does not require a CDL(even though I personally have one).
I chose to not go over 500 miles. It’s strictly because I am not getting into long haul expediting.
The business plan is to stay local. Work directly with local businesses. I am the carrier, owner/operator, and the driver. Basically a one person operation.

Worn Out Manager · Jun 8, 2019

EYDJ said:
I have my own authority so I am the Carrier. I am also in a Nissan NV high roof. It is not over 10,000lbs therefore does not require a CDL(even though I personally have one).
I chose to not go over 500 miles. It’s strictly because I am not getting into long haul expediting.
The business plan is to stay local. Work directly with local businesses. I am the carrier, owner/operator, and the driver. Basically a one person operation.

Then I defer to Mr Grizzly, what does CIS recommend. So you are to be a local to mid range courrier? I would guess your customers will determine what coverage you need based on what you are carrying for them.

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Grizzly · Jun 9, 2019

EYDJ said:
I understand for commercial vehicles over 26,000lbs.

Regarding this one specific point, it's been mentioned on other posts. As a matter of risk, the smaller, unregulated vehicles are more riskier to insure imo.

Trucks:
- Regulated
- ELD
- Drug tested
- Required vehicle inspection

Vans:
- All sorts of people are doing all sorts of things in vans.

If I was the insurer, I'd want to insure dot regulated trucks. Even though the cost of the assets are greater, in many respects they're safer.

Worn Out Manager · Jun 9, 2019

Vans:
- All sorts of people are doing all sorts of things in vans.

OMG, did anyone else see what I was doing in the van!

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Ragman · Jun 9, 2019

Worn Out Manager said:
Vans:
- All sorts of people are doing all sorts of things in vans.

OMG, did anyone else see what I was doing in the van!

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https://imgur.com/I3k9faY

xmudman · Jun 9, 2019

Worn Out Manager said:
Vans:
- All sorts of people are doing all sorts of things in vans.

OMG, did anyone else see what I was doing in the van!

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Oh the things couples do

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Worn Out Manager · Jun 9, 2019

xmudman said:
Oh the things couples do

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But, but......I was alone in the van

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Ragman · Jun 9, 2019

Worn Out Manager said:
But, but......I was alone in the van

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Do it twice.

Grizzly · Jun 10, 2019

Here's a perfect example, how is this guy utilizing his van? You wanna insure him?

I do like the solar panel ... lol

ShellyB007 · Jun 10, 2019

...But back to the far less interesting insurance question

Worn Out Manager is on the right track...

"Carriers and Brokers want to reduce their risks by making sure the trucks carting their freight provide that cushion first before their own umbrella policies kick in."

It's actually called a "Contingent Liability" rather than an "Umbrella" policy for the Brokers, but the concept is sound.

Brokers have determined $1,000,000 as the industry standard for shipping in the Expediting niche for the most part. (Exceptions like Ford, GM $2 Mil and $500K Cargo)

From a Carrier perspective, this was a hot topic generating a lot of chatter back in 2016/2017 from a blog "Why Cargo Vans and Sprinters carry $1 Million Liability."

...and let's hope I'm not insuring the Free Candy Van.

Have a great week, guys! Shelly xoxo