Archive for Autos, Trucks & RVs
Most homeowners policies provide some limited liability for all-terrain vehicles (ATVs). Owned vehicles coverage is restricted to use only while on the named insured’s premises. However, even this limited coverage may be excluded or significantly limited. The standard market’s interest in covering these vehicles is decreasing as their popularity and losses associated with them increases.
Professional liability coverage for ambulance drivers and attendants is difficult to place through standard insurancemarkets. Several specialty carriers have developed insurance programs that cover drivers and attendants who work in community rescue squads and ambulance services connected with volunteer fire departments. Coverage also extends to employees and volunteers. Program coverage is also available to individual employees who work for professional ambulance companies. This coverage includes bodily injury, mental distress, and/or death of any patient alleged to be caused by an error, omission, or negligence in providing professional services.
Antique and Classic Automobile Insurance
Restoring, caring for, and maintaining older automobiles is a popular pastime of Americans of all ages. Gatherings, parades, and tours for antique autos sponsored by antique automobile clubs take place throughout the year. These vehicles may be extremely valuable, depending on the model, age, and availability. In many cases, the expenses the owner incurs to restore the vehicle equal to or exceed its actual value. An antique automobile is usually defined as a private passenger-type motor vehicle 45 or more years of age. A classic car must be more than 20-years-old and also be a distinctive type of car. Antique and classic automobiles must be maintained for use in exhibitions, club activities, parades, and other functions of public interest and used only occasionally for other purposes. The vehicle cannot be used primarily to transport passengers or goods. Liability rates are usually much lower than manual automobile liability rates. Physical damage coverage is written on a stated amount basis. The coverages usually provided include liability, comprehensive, and collision.
Armored Car Services
Insurance coverage on armored car services is difficult to place because of the hazardous nature of their operations and the services provided. Pick-up and delivery of money and securities, gold bullion, and other precious metals and valuables expose both the vehicle and its drivers and attendants to significant losses. The cargo that armored car services carry is valuable and difficult to underwrite and insure.
Auto Dismantlers and Recyclers
Auto dismantlers and recyclers purchase automobiles that are at the end of their useful lives. Usable parts are removed by hand and sold as used auto parts. Some salvaged parts are reconditioned or repaired and sold over the counter in store operations. Once all salvageable parts have been removed, cars are crushed and sold to scrap dealers. Insurance coverages available include commercial property, general liability, automobile, crime, inland marine, and umbrella liability. Workers compensation can be a significant problem because of the crusher exposure.
Auto Salvage Yards
Coverage for auto salvage and junk yards is considered difficult to place from the standpoint of both general liability and property exposures. Poor housekeeping and highly toxic and inflammable solvents, batteries, and old tires on the premises are part of the problem. Open welding operations to remove parts can cause explosions due to the presence of gasoline and other flammables. Pollution is a major concern.
Auto Service Centers
Operations that service automobiles include body repair, tire stores, quick lube oil operations, and muffler installers. All have pollution and completed operations exposures. Above ground and underground storage tank pollution, damage to customers’ vehicles and employee injuries are all areas that must be covered.
Auto Transporters & Haulers
Automatic Car Wash Services
Automatic car washes are a convenience available to motor vehicle owners. They may be part of an automobile service station or a stand-alone operation. Some markets offer a complete package of coverages, including property, general liability, business income, and crime, or they may provide these coverages separately. Both attended and self-service auto car wash risks are eligible. Property damage to customer vehicles coverage is available but is subject to a significant per-vehicle deductible.
Automobile and Snowmobile Racing Liability (Spectator)
Automobile racing events attract large crowds all over the country. This coverage protects the insured track or road course owner and/or the sponsors that conduct the event against spectator’s claims that arise from injuries sustained at the track or road course. Claims can arise from grandstands or bleachers that collapse; contact with racing vehicles; or contact with debris from an accident on the track or road course. Coverage does not apply to claims by participant drivers or owners of racing vehicles. This coverage is also available for race tracks and road courses that specialize in recreational vehicle racing, such as motorcycles and snowmobiles.
Automobile and Truck Rental – Daily
Insurance for automobile and truck agencies that rent vehicles on a daily basis can be difficult to place. Although the term “daily” is used, these agencies can rent vehicles for up to six months at a time. These businesses cannot be underwritten in the traditional way because the driver (the number-one cause of accidents) is an unknown. The types of vehicles rented, qualification requirements for drivers, prior loss experience, and underlying insurance requirements in the rental contracts must be examined carefully when writing this class.
A number of package policies for franchised automobile dealers have been developed and are readily available. They usually provide property, auto dealers’ premises and operations liability, garagekeepers insurance, and dealers’ physical damage coverages. Loss of business income, employee tools, personal and advertising injury liability, and other optional coverages are also available.
Automobile Excess Liability
Automobile excess liability insurance is available to drivers who cannot obtain more than the minimum liability insurance limits needed to satisfy the financial responsibility requirements in their state because of age, occupation, vehicle use, or driving record. It is also available to drivers in assigned risk plans.
Automobile Insurance Plans Excess Liability
This is excess bodily injury and property damage liability limits over the basic automobile liability insurance coverage limits provided by the Automobile Insurance Plans (AIPs) in various states. Optional medical expense coverage and uninsured motorists coverage is also available. The premium charged is based on the primary policy premium.
Automobile Insurance Plans Physical Damage
This is physical damage coverage for automobiles placed in an Auto Insurance Plan or Assigned Risk Plan for liability coverage. Some states provide physical damage within the plan but others do not.
Automobile Leasing Contingent Liability
Automobile leasing companies require that lessees provide liability coverage on the leased vehicles. The leasing company purchases this coverage to protect its own interests when the lessee does not purchase the required coverage.
Automobile Leasing Contingent Physical Damage
Automobile leasing companies require that lessees provide physical damage coverage on the leased vehicles. The leasing company purchases this coverage to protect its own interests when the lessee does not purchase the required coverage.
Automobile Nonstandard Liability
Many motorists find obtaining automobile liability insurance with standard carriers at regular rates difficult or impossible because of their age, occupation, driving habits, moral habits, and other issues . Over the years, many well-managed standard carriers have entered into or increased their nonstandard automobile insurance writings. These companies readily insure eligible drivers who have been declined, cancelled, or refused coverage at standard rates. This coverage is written at surcharged rates usually based on the insured’s accident and driving violation conviction record. The insurance company considers a number of factors when it decides whether or not to write this coverage in a given state or locality.
Automobile Nonstandard Physical Damage
Motorists who cannot find comprehensive and collision insurance coverages with standard markets at regular rates must obtain them through specialty markets at surcharged rates. The same companies that offer nonstandard liability coverage usually also offer physical damage coverage. Physical damage coverage on high-powered sports cars, automobiles equipped for racing, specially equipped automobiles, and automobiles with fiberglass bodies is especially hard to place.
Automobile Physical Damage (Kits/Replicas/Custom Cars)
Auto physical damage insurance is available for cars built by their owners or by others on the owner’s behalf. Some of these are “replicars,” replicas of antique and classic autos constructed from kits. These vehicles have high physical damage values and substantial deductibles may be required.
Automobile Repossessors Liability
Businesses that repossess automobiles have difficult liability exposures and require expert handling. General liability, especially personal and advertising injury liability, is required to cover the operations exposure. In addition, auto liability for tow truck operations is required. Drive-away coverage is needed to cover the liability exposure on the vehicle being repossessed and garagekeepers legal liability is needed to cover vehicles while in the insured’s care, custody, and control.
Automobiles – Sport and High Performance Cars
Automobile manufacturers design some very sophisticated and high-powered automobiles for sale to customers who use them for everyday driving and transportation and possibly weekend racing. At one time most road racing or drag racing enthusiasts custom-built their own performance cars from stock models using custom racing equipment. These drivers were also usually very experienced racing enthusiasts and knew how to handle such cars. The introduction of high-powered vehicles to non-racing drivers can be deadly to both the driver and others because they lack training and do not understand the vehicle’s power. Standard markets often decline to insure these vehicles.
Bobtail or Deadheading Liability (Truckers)
Independent truckers who operate their owned vehicles under a lease agreement with a trucking firm are insured under that firm’s liability coverage but only when they operate within the lease’s terms. The trucker who bobtails (operates a tractor without a trailer) or deadheads (operates a tractor with an empty trailer) needs its own liability protection when the tractor is operated outside that trucking firm’s authority.
Musicians, entertainers, sports teams, youth groups, church groups, and businesses that go from one city to another to promote their products invest large sums of money to convert buses to meet their own specific needs. Insurers provide the tailor-made insurance coverages for such converted vehicles while on the highway or at designated stops. Unique furnishings and accessories are written on a stated value basis and stylized interiors, comfortable lounging, eating and sleeping facilities, and computerized communication equipment can also be insured. Insurers that specialize in insuring buses, recreational vehicles, and motor homes are usually also markets for the customized physical damage and liability coverages that match these customers’ needs.
Liability and physical damage coverage for buses is rated under the publicautomobile section in automobile rating manuals. This class of business is often difficult to place through standard markets. Underwriting considerations include the number of passengers that can be carried, annual mileage, and the bus’s use. Examples are intracity, airport, hotel, resort, and school buses. Most states require minimum mandatory financial responsibility limits based on the number of passengers carried.
Campers and Camper Vans
These recreational vehicles range from low-cost, fold-down, fabric-topped campers and camping trailers to campers mounted on pickup trucks, and large units commonly referred to as fifth wheels. Some carriers insure such units under private passenger auto policies. Others issue specifically designed recreational vehicle policies that package liability, comprehensive, and collision coverages and offer options such as vacation expense allowance, vendors single interest, incidental rental, and optional personal effects coverage. Policies similar to motor home coverage usually insure self-propelled camper vans and large truck-mounted campers.
Charter buses take groups of persons to destinations, special events, and to and from hotels or meeting places to events scheduled for the group. This classification also includes sightseeing and tour buses. Some underwriters provide only physical damage coverage on the bus fleet while others offer broader coverage , that includes liability, passenger liability, hired auto, and employers’ non-ownership liability. Coverage is available to comply with federal laws and Federal Motor Carrier Safety Administration (FMCSA) requirements and is subject to specific limits per vehicle and per terminal. Deductible options and reporting plans are usually available.
Coal Trucks Physical Damage
This class of commercial automobile business is especially difficult to place because these trucks are large, very heavy, and travel on narrow, unimproved, and winding roads in difficult terrain.
Commercial Autos: Miscellaneous and Special Purpose
Liability and physical damage coverage on commercial automobiles rated in the miscellaneous section of commercial automobile rating manuals is more difficult to place than coverage on standard vehicles. Examples of miscellaneous vehicles are logging vehicles, municipal service vehicles, fire department apparatus, ambulances, police department autos, mobile units, snowmobiles, and certain types of construction equipment.
Van customizing is done both inside and outside a van. Internal changes may include carpeting, insulation, bars, television receivers, or cooking and sleeping facilities. External changes may include height-extending roofs, custom murals, paintings, or decals. The vehicle’s owner or companies that specialize in such work may do the customizing. Most personal and commercial auto policies do not cover such customized features, equipment, and furnishings. These specialty carriers provide physical damage coverage similar to the coverage that applies to the vehicle:
Drag Strip Liability (Spectators)
Large crowds usually attend national drag racing championship races and other drag racing events held at various locations across the country. The same markets that insure spectator liability at automobile racetracks often write the liability coverage for these events as well. Underwriters require strict specific safety precautions and both guardrails and high fences to protect spectators from drag cars that go out of control.
Drive Away Coverage
Autos can be cargo that a motor carrier transports from a point of destination to a dealership. As with all cargo, they are subject to a bill of lading. When the method of transportation is a motor carrier driving the auto, instead of carrying it on a car carrier, between the two points, this coverage is available. Fire trucks, trucks, buses, new and used recreational vehicles, tractors and other types of large self-powered vehicles are examples of autos that are commonly transported in this manner.
The coverage provided is solely for the benefit of the motor carrier. Liability, physical damage and/or cargo coverages are available.
Driveaway Collision Coverage
Auto dealership coverage forms limit collision coverage for covered autos to only autos that are driven or transported no more than 50 miles from the point of purchase/distribution to their final destination. This coverage deletes the 50-mile radius requirement. This coverage is written on a reporting basis. Coverage applies based on complete information about the vehicle and the start and end points of the transportation.
Auto driving schools are difficult risks to place. In addition to the auto liability exposure to others with an inexperienced driver behind the wheel, the workers compensation loss potential to instructors; automobile-related injuries to student drivers; and physical damage to the instruction vehicle must be considered.
Dump Trucks (Liability and Physical Damage)
Physical damage and liability coverages for commercial trucking companies or independent owners of dump trucks used to haul sand, stone, aggregate, coal, and refuse are often difficult to place. The loss potential increases when the vehicles are not kept in good repair and/or are used on narrow winding roads with steep inclines. Vehicles are rated according to use, size, distance traveled, and original cost. Loss history and management controls are very important to underwriters.
Electric and hybrid vehicles were developed because of increasing concerns over effects of traditional, fossil-fueled vehicles on the global environment. Electric and hybrid vehicles operate either solely on a battery system or on a combination system where a gas engine engages when the vehicle reaches a certain speed (typically over 45 mph). Standard markets were initially reluctant to cover these new types of vehicles. The insurance-related concerns are the high expense and vulnerability of their battery/electrical systems, hazardous clean-up concerns, and more frequent vehicle/pedestrian/bicyclist accidents because these vehicles make little noise.
The difference between a vehicle’s depreciated value and the amount still owed on a lease or purchase agreement can be significant, especially at the beginning of a long-term agreement. GAP insurance pays that difference between these two amounts so that the loan or lease can be paid in full if the car is damaged or stolen.
Garage Liability: Repair and Service Operations
Garage operations have significant automobile liability and general liability exposures. Repair and service operations also have significant care, custody, and control exposures for automobiles left in their care. Towing operations create additional exposures and pollution issues are a major element of these risks.
Garagekeepers Legal Liability
Garagekeepers legal liability insurance provides physical damage coverage on autos the insured accepts for safekeeping, storage, service, or repair. Coverage can be written on a specified perils basis, including fire, explosion, theft, riot, civil commotion, and vandalism, or on a comprehensive basis, subject to deductibles. Coverage can be primary or excess.
Garbage and Waste Haulers
Underwriters consider this class of business to be undesirable for auto coverage. Waste and garbage haulers’ hazardous or infectious waste picked up from commercial or residential customers may pollute or contaminate land, water, or air. In addition, their large trucks can cause serious bodily injury and property damage because they operate on residential streets and have significant blind spots.
Golf Carts and Low Speed Vehicles (LSV)
As golf struggles to maintain its popularity, it may envy the significant growth in other functions for golf and utility carts. Golf carts no longer are just single-dimensional transportation for golfers. They have become multi-use vehicles for travel on certain public roads, in retirement and gated communities, marinas, and other areas with restricted access. Some states even permit them to be used on public streets. This increased usage is introducing insurance-related concerns. Golf carts used strictly as golf carts are easily insured under a homeowner’s policy by endorsement. On the other hand, golf carts capable of higher speeds and equipped with additional features are considered either street-legal carts or low speed vehicles that must be insured separately, like automobiles. Such carts and LSVs are also called Neighborhood Electric Vehicles (NEVs).:
Hazardous Industries Monoline Workers Compensation Insurance
Hazardous industries tend to have severity issues as opposed to frequency issues. This makes them more difficult to underwrite profitably. Effective management and proactive loss prevention are the keys to successfully writing these risks. Examples of industries that fall into this category are logging, trucking, agribusiness, oil and gas, maritime, and many types of manufacturing and construction operations.
Hazardous Material Haulers
Coverage is available for businesses that transport hazardous materials. The Motor Carrier Coverage Form is normally used to cover auto liability and physical damage. General liability coverage may be modified to offer some pollution coverage and the MCS-90 endorsement is available for hazardous materials carried under the Motor Carrier Act.
Limousine services are growing in popularity and use, especially in or near urban areas and airports. These operations vary in size from individual owner/operators to large fleets of limousines, some of which are equipped for special purposes. Some operate in only one city and shuttle air travelers back and forth from the city or hotels to the airport. Others operate for special purposes, such as for weddings, proms, to escort executives from place to place, or as a party vehicle when clients visit various nightclubs or sporting events. These services usually furnish high-value limousines, such as Cadillacs, Lincolns, Rolls-Royces, or unique vehicles such as stretch SUVs. Coverage applies to commercial automobile liability and physical damage to the limousines on a stated amount basis, subject to a deductible.
It may be difficult to place coverage on truckers that transport livestock from farms to feedlots or the marketplace. Special precautions are necessary to assure that the animals have enough room and ventilation to survive long trips. Additional care is needed with respect to loading and unloading.
Long Haul Trucking Insurance
Long haul truckers are distinguished from other trucking businesses by their radius of operations. Long haul usually means more than 200 miles from the garaging location. Auto liability and physical damage coverages are available through insurers that specialize in the trucking business. Long haul operators usually transport freight over the road in tractor-trailer units or heavy trucks capable of carrying heavy loads. ISO or independently filed rates apply to territorial zones based on the operator’s principal garaging zone and the most distant destinationâ€™s zone. Fleet operations involve five or more vehicles and are distinguished from non-fleet operations for rating purposes. Coverage on bobtail operations and trailer interchange agreements may also be arranged. Motor truck cargo is another important coverage.
Manufactured Home Haulers
Manufactured home haulers are a greater risk on the highway than most other types of trucks because of the oversized loads they haul from manufacturers to home sites. As a safety precaution, these vehicles are usually preceded and followed by smaller â€œâ€chaseâ€â€ vehicles with warning signs to inform other drivers of the oversized load. However, this precaution alone does not guarantee that the load will not shift or upset because of steep hills, curves, high winds, and/or rain.
Commercial and personal lines automobile policies do not cover any Mexican exposures. Therefore, tourists and workers who drive, fly, or cruise into Mexico must purchase automobile insurance from Mexican insurers if they plan on driving an owned or nonowned vehicle in Mexico. Policies can be purchased in border towns in California, Texas, Arizona and New Mexico from legally authorized agents of licensed Mexican insurance companies. Policies are written for the length of time to be spent in Mexico and provide liability, physical damage, and medical expense coverages. This coverage is being written to an increasing extent on commercial businesses operated by American corporations and on trucking risks that carry cargo between the United States and Mexican cities.
Mobile Home Dealers – Physical Damage and Liability
Mobile home dealers are similar to auto dealerships because they need coverage on their stock of unsold mobile homes on their lots. An open lot dealers physical damage coverage form or policy can be used to provide such coverage. These forms can also be used to cover mobile homes, travel trailers, and other types of recreational vehicles the dealership sells. In addition, they can cover such stock on premises, while in transit, and while being installed at the purchaser’s location. Coverage is usually written on a reporting basis, where the dealer reports the values of its inventory monthly, including a provisional deposit premium and adjustment at the end of the policy period.
Mobile Home Parks – Owners Liability
This coverage insures the owner or operator of a mobile home park against bodily injury or property damage liability claims that arise from its ownership, maintenance, and/or use of the premises and all incidental operations. Products liability and medical payments coverage may also be included. Certain operations such as boats, docks, floats, swimming pools, restaurants, and stores must be declared so that the risks from these operations can be evaluated and appropriate premium charged.
Mobilehome Personal Lines Coverage
This insurance is designed specifically for mobile home owners. Insurers that specialize in mobile home physical damage insurance offer package policies. They provide either broad perils or limited perils of fire, windstorm, hail, explosion, theft, and vandalism. Coverage may apply to awnings, cabanas, porches, and other outdoor equipment attached to the mobile home. Personal effects can be covered against named perils, including theft. Personal liability and medical payments coverage also is available.
Motor Home Rentals
Motor homes can be rented for weekend excursions, family vacation trips, or commercial use on a short-term or long-term basis. This insurance is sold to the dealer. It covers the motor home while it is rented to others. The dealer passes this cost to the party that rents the motor home by adding it as one part of the overall rental fee.
Motor Home/Travel Trailers (Commercial Use)
Commercial motor home and travel trailer risks can be difficult to place. Race car drivers, musicians, entertainers, film production companies, catalogue sales companies, claims adjusters, and businesses that have traveling exhibits are common examples of people or businesses that need this coverage. Coverage is also available for business personal property in the motor home or trailer.
A motor home is a self-propelled land motor vehicle, designed and constructed to provide facilities for cooking and sleeping. Physical damage coverage extends to accessories, permanently attached equipment, and personal effects kept in the motor home. Bodily injury and property damage liability, medical payments coverage, comprehensive, and collision (subject to specified deductibles), uninsured motorists protection, and vacation expense allowance coverage are part of the package.
Motor Truck Cargo Insurance
This insurance covers cargo being hauled for risks of physical loss or damage. Cargo with low values that travels up to intermediate distances is relatively easy to place and is written freely. However, insurance on larger trucks that carry more expensive merchandise or hazardous cargo over long distances may be available from only underwriting specialists. Commodities that are difficult to place include high-valued breeding animals, bullion, money, precious metals, securities, fine arts and jewelry, cotton, eggs in shells, explosives, mobile homes, hazardous materials, race horses, and show animals. Coverage is usually written for the cargoâ€™s value.
Moving & Storage Companies
Moving and storage companies are responsible for their clients’ personal and commercial goods from the time the load is removed from the client’s home or place of business, during transit, while in temporary storage, until it is delivered to (and unloaded at) its final destination. Coverage is available for auto liability and physical damage, general liability, the client’s goods while in transit and in storage, the client’s business personal property, and workers compensation.
Non-owner car insurance
Many individuals are choosing to not purchase a vehicle. Instead, they use a car-sharing service, frequently rent vehicles or borrow a car. Some individuals who have been convicted of a DUI or other violation may also be required to purchase non-owner insurance as a condition of getting their license reinstated. The coverage is liability and, in some states, uninsured motorist/underinsured motorist coverage. Physical damage coverage is not offered.
Offâ€“Course and Storage Coverage
Off-course and storage coverage protects competition vehicles from physical damage losses due to fire, theft, trailer upset and other comprehensive losses, and for most other physical damage claims that might occur when the vehicle is not operating under its own power. Other eligible property includes the trailer, spare parts, major tools, and equipment. This coverage is written on a “risks of direct physical loss” basis, subject to policy terms and conditions. It applies whenever the insured property is stored, transported to and from events, and also while it is in parking and garage areas. This coverage does not apply to on-track physical damage or at any time when the scheduled competition vehicle is operating under its own power.
Parking Garages and Parking Lots
Retail stores that sell merchandise on time payments or on deferred payment plans have an insurable interest in the merchandise until the customer makes the last payment. If such merchandise is damaged, the customer stops making payments and the store sustains a loss. Installment sales coverage indemnifies the store for the unpaid or outstanding balance owed on the merchandise that was damaged. Coverage may be written on a single-interest basis to cover only the store’s interest or on a dual-interest form that covers the interests of both the store and the customer. This coverage is used less frequently than in the past because many retail stores no longer offer in-store financing.
Franchise and non-franchise oil change specialty operations seem to be everywhere! Garage liability, garagekeepers legal liability, commercial general liability, property, auto, crime, and equipment breakdown coverages can be written on a monoline basis or as a commercial package policy. Deductibles range from low to very high, depending on the nature and extent of services provided.
Recreational Vehicle Dealers
Recreational vehicle dealers need liability and physical damage insurance coverage. These coverages may be offered separately or on a combined basis, depending on the insurer. Snowmobiles, campers, motor homes, mopeds, trail bikes, and all-terrain vehicles are some of the more popular vehicles. Liability insurance covers all sales operations and demonstrations and may extend to include completed repair and service operations and premises. Floor plan coverage for damage to the dealer’s stock of recreational vehicles may be available. Coverage for customers’ vehicles can also be provided while those vehicles are on the dealer’s premises for service or repairs. Optional rental and racing sponsorship liability coverages can be arranged in some markets.
Residual Value Insurance – Autos, Equipment, etc.
This program covers the lessor against unexpected declines in the market value of leased property and vehicles when the lease agreement ends. Automobiles are the property most often covered but other types of property can also be covered. The insurance company agrees to purchase the leased property at the end of the lease for a predetermined amount. The lender insures the residual value. The coverage pays the difference between the actual value of the property when the lease ends and the predetermined agreed upon amount.
Rideshare Auto Insurance
Many personal lines auto carriers do not provide coverage for any auto whose driver is signed onto an app and is ready to accept passengers for a fee. The driver needs physical damage and bodily injury coverage during this gap period even though some limited bodily injury is being provided by the company that operates the rideshare app.
Sand and Gravel Haulers
It is often difficult to place auto liability and physical damage insurance for commercial trucking companies or independent owners of trucks that haul sand, gravel, aggregate, or ore. These trucks often operate in areas of the country where roads are narrow and winding. Heavy loads of sand, dirt, ore, gravel, and rock add considerable weight to the truck. These vehicles can suddenly go out of control, especially if they are not well maintained. Vehicles are rated according to use, size, distance traveled, and the equipmentâ€™s original cost.
Single Interest Insurance
This coverage protects financial institutions, such as banks, savings and loans, finance companies, and credit unions against financial loss resulting from physical damage to property on which they have made loans. Coverage is force-placed when a borrower does not have the required physical damage insurance. The borrower is required to pay for the coverage as part of his or her installment payments, even though it is only for the benefit of the financial institution. Examples of the types of property covered are autos, pickup trucks and vans, recreational vehicles, watercraft, mobile homes, motorcycles, farm equipment, and household goods. When a loss occurs, the most that the financial institution can recover is the amount it is owed on the property at the time of the claim.
Snowmobiles (Commercial and Rental)
Snowmobiles are owned and operated by many entities in the northern states. They may be used by commercial and governmental entities to provide important services. Some commercial enterprises, such as resorts, trail operators or snowmobile dealerships, may rent out snowmobiles for recreational purposes. Snowmobile racing, derbies, safaris, and rallies are very popular and are sponsored by local snowmobile clubs. Liability insurance is available to cover the sponsor’s responsibilities to spectators and other parties at these special events.
Snowmobiles (Personal Use)
Homeowners policies exclude physical damage and liability coverage on owned snowmobiles. Some coverage is available by endorsing an existing homeowners policy. However, broader coverage may be needed that only a stand-alone snowmobile policy can provide.
Taxicabs have significant automobile liability and workers compensation exposures that can be very difficult to place in the standard market. However, several insurers specialize in insuring taxicabs on a fleet or individual risk basis.
Tire retreading presents a significant products liability exposure, making this a difficult class of business to place. Several programs available for tire dealers and retreading operations provide property, crime, loss of business income, and commercial general liability coverages. Monoline unsupported products liability coverage is also available.
Tow Away Coverage
Trailers can be cargo that a motor carrier transports from a point of destination to a dealership. As with all cargo, they are subject to a bill of lading. When the method of transport is a motor carrier towing the trailer with a truck or tractor, this coverage is available. Recreational vehicles, cargo trailers and livestock trailers are examples of trailers that may be transported in this manner.
The coverage provided is solely for the benefit of the motor carrier. Liability, physical damage and/or cargo coverages are available.
Tow Trucks Insurance
Tow truck operations are considered a good class of business for specialty commercial automobile carriers. Automobile liability and physical damage coverage is available for operators who have only one or two trucks as well as operations that have large fleets. A major underwriting concern involves towed vehicles that become unhooked from the tow truck and cause property damage to parked or passing vehicles, fixed property, and possibly pedestrians. The best operations employ experienced operators and have a history of safe tows. Operations that use tow trucks to repossess autos must be carefully underwritten.
Transportation Brokers-Contingent Cargo Insurance
This is an “all risk type” coverage designed to insure cargo while it is in the custody of the motor truck carrier that is used by the insured transportation broker. It includes warehouse-to-warehouse coverage and applies when the motor truck carrier cannot pay the shipper for its cargo loss because its insurance was cancelled, the insurance company denied the claim, or the limits of insurance were inadequate. It usually warrants that the transportation broker will keep a valid motor truck cargo policy in its office for any vehicle brokered by the insured.
Travel Trailer Rentals Insurance
Insurance companies that specialize in motor home and other recreational vehicle insurance also write insurance on travel trailer rentals. Trailers can be rented for a day, a weekend, or a week (or be leased for longer periods). Coverage applies while the trailer is on the road and at the camp site. Physical damage coverage applies to the vehicle’s value and any accessories rented with it. The party who rents the travel trailer pays the premium for the coverage, but a master policy is issued to the dealer or rental agency.
Travel Trailers and Campers – Personal
This physical damage-only insurance coverage is available for campers and travel trailers pulled by vacationers’ automobiles to camping sites and recreational facilities. Optional endorsements include vacation expense allowance, incidental rental, and additional personal effects coverage. Liability coverage is not provided because the liability coverage for the automobiles or other vehicles that pull the trailer provides that coverage automatically.
Truck Servicing Operations
These operations are much larger versions of repair garages. Their exposures are also much larger because a mistake made in repairing a truck’s brakes or other operating parts have consequences that could damage multiple vehicles, large bridges, or overpasses. Property, commercial general liability, workers compensation, and umbrella liability should be mandatory coverages. Garagekeepers coverage is also needed for the care, custody, and control exposures of these operations.
Truckers Occupational Accident/Workers Compensation
This coverage is sold through trucking companies and covers the owners/operators who contract with them. The trucking company passes the premiums on to the insured truckers. Certain states require that trucking companies provide workers compensation for their contracted drivers and the carriers that provide the occupational accident coverage may provide that mandatory coverage.
Trucking (Last Mile)
Auto liability and physical damage coverages are available through insurers that specialize in the trucking business. Truckers transport freight for others over the road in tractor-trailer units or trucks that can carry heavy loads. Coverage on bobtail operations and trailer interchange agreements can also be arranged. Motor truck cargo is another important coverage.
Used Car Dealers Insurance
Used car dealers are a difficult class to underwrite and place because of a number of problem exposures. Examples are the difficulty in establishing the proper valuation of used vehicle stock due to value fluctuation and products-completed operations concerns when the dealership provides repair and maintenance services. Theft, hail, and vandalism are concerns in certain areas because the vehicles are typically kept in open lots. Dealers that provide their own financing have additional insurance needs.
Valet Parking Services
Hospitals, restaurants, country clubs, hotels, museums, and individuals contract with valet parking services as a courtesy for their guests. Guests stop at a marked valet station, give the vehicle’s key to the attendant, and receive a ticket. The valet parks the vehicle in the appropriate area. When the guest returns, presents the ticket, and pays the parking fee, the valet retrieves the vehicle and returns it to the guest. Additional services such as automobile detailing and shuttle services may also be provided.
Getting employees to and from their jobs can be a major problem for certain employers. One option is to hire vanpool operators. The vanpool operators are independent contractors who provide the service for a fee under a written contract. The contract for services is between the employer and the vanpool operator, not with the employees being transported. The major exposure is automobile liability and physical damage.: