We have compiled a list of insurance terms and their definitions that will be very helpful in researching precisely the type of coverage’s you will need to properly insure your trucking business.
The number and types of exposures in a commercial venture far exceed those of a personal policy.
ACTUAL CASH VALUE A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation.
ADJUSTER An individual employed by a property/casualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyholders, and receive a portion of a claims settlement. Independent adjusters are independent contractors who adjust claims for different insurance companies.
AGENT Insurance is sold by two types of agents: independent agents, who are self-employed, represent several insurance companies and are paid on commission, and exclusive or captive agents, who represent only one insurance company and are either salaried or work on commission. Insurance companies that use exclusive or captive agents are called direct writers.
BINDER Temporary authorization of coverage issued prior to the actual insurance policy.
BOBTAIL LIABILITY This is insurance which in in force when you are driving home off duty, or getting the truck serviced. This is your people that are leased on to a carrier, use that companies ICC # and who are covered by that carrier while delivering goods, loading/ unloading, and doing work for the carrier.
BROKER An intermediary between a customer and an insurance company. Brokers typically search the market for coverage appropriate to their clients. They work on commission and usually sell commercial, not personal, insurance.
CARGO INSURANCE This policy covers damage done to the cargo that you are transporting. The loss could be as a result of an accident, fire or theft. It is possible to purchase coverage which also protects against food defrosting, spoiling or melting as a result of Refer Breakdown. Careful, cargo policies often have many stipulations- read carefully!
CSL. = Combined Single Limits
CAR ON HOOK COVERAGE This covers damage done to the car you are towing. This coverage is required of a company that operates a tow truck.
COMPREHENSIVE COVERAGE Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft. This coverage is usually sold along with Collision coverage.
GARAGE LIABILITY Coverage that protects against work you do to a customers car that results in injury.
GARAGE KEEPERS LEAGEL LIABILITY Coverage that protects a customers car while in your Care, Custody or Control.(GKLL)
INSURANCE A system to make large financial losses more affordable by pooling the risks of many individuals and business entities and transferring them to an insurance company or other large group in return for a premium.
NON TRUCKING LIABILITY This is insurance which in in force when you are driving home off duty, or getting the truck serviced. This is your people that are leased on to a carrier, use that companies ICC # and who are covered by that carrier while delivering goods, loading/ unloading, and doing work for the carrier.
POLICY A written contract for insurance between an insurance company and policyholder stating details of coverage.
PREMIUM The price of an insurance policy, typically charged annually or semi.
PRIMARY LIABILITY This is insurance which in in force at all times whether delivering goods, loading/ unloading, you driving home off duty.
