The thieves were very clever. They drove DTI’s trailers off the non-owned lot where DTI's driver had left them, removed their contents, and then returned the now empty trailers to the same lot.

Lloyd’s refused to pay the loss because DTI's motor truck cargo policy contained an unattended vehicle exclusion.  In order for theft coverage to apply, the trailer had to be securely locked with all keys removed. In addition, the trailers were required to be left in a guarded lot.

The disagreement hinged on whether or not the lot was guarded.

Click here to find out how the court ruled.

Any carrier that transports goods for others is legally liable for damage to those goods. The required coverage is provided on an Inland Marine Coverage form known as Motor Truck Cargo.

Click here to see how Coverages Applicable defines the coverage.

A motor carrier is required to have Form MCS-90 in the vehicle. This form confirms limits of insurance for public bodily injury, property damage, and environmental restoration. The limits are significantly higher than standard minimums and coverage can be provided with either insurance coverage or a bond.

Click here to review the PF&M explanation of how the law operates and how the motor carrier policy can be endorsed to meet the requirement.

The motor carrier industry is picking up steam. It is currently considered one of the most understaffed industries and is actively seeking new employees and independent truckers. New trucking operations are starting and existing ones are expanding. Have you considered providing coverage on a trucking account?

Click here to review the Trucking Narrative in the Producer’s Commercial Lines Risk Evaluation System.
It may start you down the road to a new revenue source.

The IMP Cybercast provides expert commentary on difficult-to-place or unusual industries and coverages as well as providing market contacts interested in underwriting them. Recent topics include:

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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