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| November 2011, Volume 59 |
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TRUCK LINES Category: Trucking and Transit SIC CODE: 4212 Local Trucking without Storage NAICS CODE: 484110 General Freight Transit, Local Suggested ISO General Liability Code: 99793 Suggested Workers Compensation Code: 7228, 7229, 7230, 7231, 7232 Description of operations: Truck lines assist customers in the packing, loading, transport, unloading, and unpacking of freight. Many truck lines have storage facilities for both temporary and long-term storage of goods. While some truck lines transport freight to the same destination over and over, others transport single shipments to a particular destination. The trucking industry is regulated by a number of federal agencies, including the Department of Transportation and the Environmental Protection Agency. Property exposure can be high if the risk repairs, refuels and maintains its own vehicles on premises. Wherever repairs occur, there is exposure to flammable liquids. Welding and spray-painting are two common exposures that must be controlled. All flammable liquids must be stored away from any heat-producing activity. The condition and controls on the tanks, whether above or below ground, are important for both property and environmental concerns. Fire hazards can arise from the combustibility of items stored. Items must be stored with adequate aisle space to allow firefighters to carry out their duties. It is very important that the items in storage do not include any flammables or ignition sources or, if they do, that they are properly controlled. As stored items are attractive targets for theft, there should be appropriate security depending on the location of the storage facility. Crime exposure is from employee dishonesty and from theft of money and securities. Background checks, including criminal history, should be performed on all employees handling money. Trucking operations involve a number of transactions and accounts that can be manipulated if duties are not separated. Regular audits, both internal and external, are important in order to prevent employee theft of accounts. As drivers, loaders and unloaders have access to customers' premises, the exposure to theft of customer property or customer identity theft increases. Inland marine exposure is from accounts receivable, computers, motor truck cargo, valuable papers and records, and warehouse operator's legal liability. Some truckers are subject to minimum cargo legal liability requirements. The bill of lading spells out the terms of the agreement that must be honored. Insurance coverage will vary, but may exceed these minimums if customer satisfaction is important to the trucker. Records should be duplicated and be stored off site. Premise liability exposure is extremely low due to limited public access to the premises. Most off premises exposures relate directly to truck operations and are covered under the business automobile policy. Contracts may expose the operation to additional liability. Automobile liability exposure is very high since it includes loading and unloading of freight. There is considerable opportunity for contact with the client, who can be injured should the movers drop or overturn items being carried. Children may be present during loading or unloading operations, requiring additional caution. Manipulating a large semi-trailer rig in a residential or commercial area requires training and awareness of surroundings. All drivers must have training in lifting and handling of items being carried. They must have appropriate licenses for the trucks being driven and the cargo being moved. All must be well trained and attend continuing education courses to maintain and improve skill levels. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Drug and alcohol testing is becoming more common. Vehicles must be maintained and records should be kept in a central location. Workers compensation exposure comes from driving, loading and unloading furniture, and repair and maintenance activities. Workers can be injured in accidents. The operations of unloading and unloading have a very high potential for all forms of back injury, hernia, sprain, and strain losses from loading, unloading, and warehouse operations. The training, material handling devices, and equipment are important to review. If independents are used, responsibility for workers compensation coverage must be specified by contract. Minimum recommended coverage: Building, Business Personal Property, Business Income, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Business Automobile Liability and Physical Damage, Hired and Nonownership Auto, Workers Compensation Other coverages to consider: Employment Related Practices, Environmental Impairment, Warehouse Operators' Legal Liability
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