1 million cargo insurance

We carry bobtail insurance on the trucks, the carrier carries everything else because that is their responsibility. If they require you to carry cargo then you are getting screwed because they are supposed to.

 

They don't require me to carry cargo.... You're missing the point basically.
If I did a six hour work day hauling oil, then disconnected from the tanker... Hooked to another trailer with a load of feathers and roll over in a pond... How is this remotely associated with what I did an hour ago with a tanker...
Even more so, in a totally different truck yet?
Most normal thinking, experienced-enough individuals plainly have to understand what I'm saying here.

 

You clearly missed the point. It wasn't about organization but about presenting a business case to people that sole purpose is to evaluate risk. And the fact that you think what you are doing is cut and dry, it is clear from what you are experiencing that the underwriters disagree with you.

I have a significantly larger operation than you do and a business model that is unique in the industry. My benched marked insurance rates are significantly below the industry and in part the way that I achieved this is that I built a specific business case with the underwriter as my intended audience.

So if you are only looking for someone that has their own authority and swaps in and out of a lease with another company you are likely going to have a hard time finding someone that is doing that in a legitimate way since the FMCSA has made doing what you are talking about a compliance nightmare. But it sounds like you have that part figured out.

Couple items to look at and consider.

First, the cheapest option is likely going to be a secondary policy rather than tacking this onto a current policy. Insurance companies have boxes they like to stay in and getting out of those boxes equals increased risk in their mind. And that equals higher premiums.

Second, policies like these are likely going to be "earned" premiums. So you are buying the policy for the year regardless if you use it the whole year (agents have a way of forgetting to mention this piece).

Third, ask about Umbrella policy. These policies tend to be a catch all. it may or may not work but a lot of agents aren't familiar with them because the just increase the limits on current policies (for higher combined premiums).

Finally, most policies are going to have minimum premiums. What you may be shopping for at this level is a company that has lower minimums.

 

I don't feel that the way I conduct business is all complex, as many small companies in and around this region do the exact same thing.
One I am familiar with hauls mail at night, hooked to dump trailers during the day and haul contaminated soil. Doing it for well over 30 years this way.
I've gotten three quotes the past couple of days based on my activities. They don't seem to have a problem with the structure, as long as I'm willing to pay their increase. That's the whole point... I'm not.
For some reason their increase is over $5k in the last 60 days with all the same coverages. But I am seeing a definite sense of competition with them trying to gain my business with them. That's a good sign. One was $1,000.00 less premium this morning alone.
Interesting to see the different programs and restrictions they come up with to make it attractive.
You can get a good education into this insurance scam if you really start to dig your heels in I see now.

 

Because of our business model I have a lot independent O/O's that look to do a similar arrangement with us for various reasons. After some initial research, we didn't see it as being feasible from a compliance standpoint.

But it sounds like you have that worked out. I'm curious how you handle the releasing of control from one carrier to the other? When you are running under your authority are they still monitoring you from a safety and compliance standpoint?

That was the biggest issue for us. If we released someone and stopped monitoring, we would have to go through the whole rehire process. In order to keep them under our compliance I basically had to monitor and document as if they are running for me but I'm not getting

 

That's always been a hot topic for many of us that operate like I do here in the northeast.
Many of my friends are owner operators. Being a cold climate region many of them lease to a carrier all winter and haul propane, requiring non trucking liability only as the carrier provides the rest (as in my case.) Come spring they leave and go do other things on their own (as in my case.)
I have never had a problem in a roadside inspection pertaining to this arrangement, as long as my paperwork reflects the status at that moment.
I have an outstanding relationship with several of my state DMV enforcement officers, one of which does the audits. Never have a had a bad rating or experience for the way I conduct my business as I work excessively to keep things in order. It's just a way of life for me, what I choose to do and I've sacrificed a lot of free time in my life to play this game.
One of my friends has a similar structure to mine. He owns three tractor trailer 100% registered and compliant and drives all three of them himself as I do... Not at the same time of course.
He pays $2,400/yr per truck... about $7,500.00 annually which is phenomenal, but he's earned it for being with them for 25 years with no claims.
He also hauls propane... Nothing more volatile than that. Switches to dump trailer and does that too, in the same day sometimes. His agent knows what he does and doesn't have a bit of problem with it.
Ii honestly think it's all in the perspective of each individual enforcement entity, depending on the geographical region that dictates what can and cannot be done.

 

I see how guys can switch because of seasonal things , but on a daily basis? Not sure how that would work

 

Isn't DOT regulation 1M on general liability and 300K on cargo the minimum? Then bump cargo coverage on a per need basis rated back to client?

 

Not to my recollection. The minimum cargo is $50k in the markets around here. I've had several agents quote me on 50k which is more than enough for my situation. Could be different in other regions though. There's so many variables it's hard to keep up with it.

 

I hate to say that I'm not sure on this because it has been so long and we are above all the limits but I believe the only thing that is required is liability at $750k. But general freight markets you will be hard pressed to get away with less than a million liability and $100k cargo