If you’re a transportation provider performing white-glove delivery services of heavy bulk goods, then you require more insurance coverage than a basic Commercial Auto Liability policy. Not only are you transporting cargo to the consumer, but in many cases, you may be entering residential homes and providing installation of and assembly services for the purchased product.

Let’s review the insurance coverages necessary to properly protect your business and ensure you are in compliance with your contractual obligations:

1. Primary Commercial Auto Liability provides coverage for bodily injury and property damage covering all motor vehicles and trailers used or operated by your team while under the dispatch of your company.

What does the “policy symbol” cover on your commercial Auto policy?

• A symbol 1 (Any Auto) policy provides coverage while operating just about any vehicle for your business operations. For example, if you need to rent or lease a vehicle for a short term, that will be covered for liability.

• Additionally, when you are unloading and delivering the product, you have coverage under the auto policy for damage you may do to the premises and/or bodily injury that may occur while you are on the premises.

Important: Make sure your auto policy does not have loading and unloading exclusions. 

2. General Liability provides protection when:

• Negligent acts and/or omissions result in bodily injury and/or property damage from using the product manufactured, distributed or installed by you on the premises of the customer.

• When someone is injured in the general operation of a business, unrelated to the use of your vehicles. Your contract may require you to provide GL coverage that names the motor carrier as an additional insured and a waiver of subrogation endorsed to the policy in favor of the motor carrier.

Important: Endorsing the policy to specifically add products and completed operations is crucial when new products are delivered and/or installed. Confirm there is no exclusion for damage done by your installation or assembly work.

3. Cargo Legal Liability or Motor Truck Cargo Coverage will most likely be required if you are transporting cargo of others under contract, and protects a carrier in the business of transporting goods as evidenced by a contract of carriage, against loss or damaged goods in transit and where you are legally liable for such damage.

4. Workers’ Compensation (WC) coverage is required by state law to provide benefits to employees who become ill or injured on the job.

• WC provides payments for medical expenses and lost wages for those injured or ill employees and covers ALL medical expenses, even those that may occur years after the injury-producing accident.

• The actual insurance policy coverage is defined by each individual State Department of Insurance. Most states require statutory WC coverage on employees. If employers fail to secure the proper work injury coverage, they may not meet the Labor Code requirement of an employer in their resident state.

5. Occupational Accident is an alternative form of work injury coverage that typically offers three components: accidental death and dismemberment, accident medical, and accident disability. The coverage is a specific cause-and-effect policy triggered by an accidental injury that occurs in the course of an insured employee’s work.

• You may be eligible for an Occupational Accident policy depending on the state in which you reside and conduct business as well as the way you pay your workers.

Great news: As a BizChoice customer, your insurance coverage is considered fully compliant per your contract requirements. Congratulate yourself on securing the proper coverage to protect you and your business so you can continue on the Road to Success.

Now for the disclaimer: This article is written in a very broad fashion and will not be used in any claim settlement. The actual policy and circumstances surrounding a claim take precedence. There may be some exclusions and limitations not addressed in this brief article. 

Renee Paul

Renee Paul is vice president of BizCHOICE Transportation, a division of Specialty Program Group, LLC. Renee has been instrumental in creating contract carrier insurance programs for the Heavy Bulk Last Mile Delivery segment of the transportation industry. She also has experience integrating a variety of technology solutions with insurance offerings to promote safety and compliance across transportation networks and logistics companies. Renee earned a Bachelor of Science degree with a major in Business Management and Administration from Humboldt State University, and is a licensed broker in Accident, Life and Health, Property and Casualty and Surplus Lines.