Do truckers need CGL Coverage?
When working in the insurance industry one of the most common things asked is whether someone is required to have [insert policy here] in order to do a certain task. This age old question is wide ranging and when posed by those in the transportation industry; they varied from long haul trucks all the way to dump and concrete trucks.
Put simply, almost all businesses are required to have both auto coverage AND CGL coverage. Regardless if the business does not own any vehicles.This concept can get a bit confusing since “trucks” are modal and change their type depending on where they are. For example as defined by CGL policies while being used on a job site a truck is considered “mobile equipment”. Whereas when driven on a public road it is considered “autos”.
A perfect example of this is explained by Bill Wilson of Insurance Journal:
“… a friend’s son who is a long-haul trucker asked about an agent’s recommendation that he needs CGL coverage. The first potential CGL exposure that comes to mind for trucks making deliveries is the loading/unloading exposure. If we’re talking about the ISO Business Auto Policy (BAP) and CGL policy, loading/unloading by hand, hand truck, or mechanical device attached to the vehicle is normally covered by the BAP, not the CGL policy. The CGL policy should cover loading/unloading, for example, by use of a lift truck.”
ISO BAP and CGL forms are designed to work together to minimize coverage gaps involving vehicles.
“…I’ve had dozens of claims in which auto and CGL coverages were split between carriers or under ISO vs. non-ISO forms. In one case, workers unloading furniture from a truck into a home did damage to sheetrock walls and an expensive tiled floor. The ISO CGL policy was written through an independent agency insurer and the auto was written through a captive agency insurer. Because the furniture was being unloaded by hand from the truck, the ISO CGL policy did not cover the loss, but an ISO BAP would cover the damage. However, the non-ISO auto policy language was different from the ISO BAP and that carrier denied the claim. …“
As a general rule of thumb, a CGL coverage will come in handy if a truck operator EVER leaves his or her vehicle. A claim that is filed under CGL policies of a trucking company are wide ranging. They can cover anything from injuries at truck stops all the way to injuries received by a third party as a result of a bar fight and even damages to hotels and other lodging properties during an over night stay. Auto policies only cover business activity directly arising from the ownership, maintenance, use or loading/unloading of vehicles. Any situation where an issue arises that can be connected indirectly would be where a CGL policy would be necessary.
With over 20+ years in the trucking insurance industry Cook Insurance Group combines national reach with local service to address the needs of large fleet, small fleet, single owner and tow trucking operations, and to charter bus lines. We ONLY serve the Trucking industry, providing the best trucking insurance. Let our friendly, bi-lingual staff help you find the right insurance protection at the right cost.
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