Category: Trucking and Transit (Excerpted)
Description of operations: Truckers transport cargo from its initial loading and pickup at the shipper's location to final delivery and unloading at the receiver's location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Some sell boxes and packaging supplies. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers' goods. While some truckers transport freight to the same destinations regularly, others transport single shipments to a specific destination. Trucking may be limited to a geographic area, to domestic destinations, or internationally to Canada and Mexico. The trucking industry is regulated by a number of federal agencies.
Property exposure: may be limited to electrical, heating, and cooling systems for an office location. All wiring must be up to code and adequate for the operations performed. If the company repairs, refuels and maintains its own vehicles on premises, there will be flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray-painting should be conducted in a spray booth with explosion-proof fixtures. Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire. Fire hazards can arise from the combustibility of items stored for customers. When another party does the packing, the trucker will not know the type of property being stored or its potential fire hazards. There must be adequate aisle space for firefighters to carry out their duties. When another party does the packing, the warehouse will not know the type of property being stored or its potential fire hazards.
Business income and extra expense exposures
Inland marine
Crime exposure
Premises liability exposure: is extremely low due to limited public access. Visitors should be limited to specific waiting areas, which must be kept clean, dry, and free of obstacles. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and well marked, with backup lighting systems in case of power failure.
Personal and advertising injury
Environmental impairment exposure
Automobile exposure: is written on a motor carriers’ policy. The exposure is very high because it includes loading, unloading, and transporting freight. Customers and others can be injured should the movers drop or overturn items being carried. All drivers must be well trained and attend continuing education courses to maintain and improve skill levels. They must have training in lifting and handling items being carried and must be able to safely operate trucks under all kinds of conditions, including adverse weather, construction impediments, darkness, and heavy traffic. They must have a valid commercial driver's license (CDL) for the trucks being driven and the cargo being moved. MVRs must be acceptable and checked regularly.
Workers compensation exposure
