Is this what would happen if Mr. Trucker were to contact your agency? If you can't handle trucking risks, how many bottom line dollars are flying out of your door, good buddy?
"Hello, Young Insurance Agency." (pause) "...a tractor/trailer that hauls grain from the field to the granary? Yes. Please hold.
"Hey Dave--where are the truck apps and who writes coverage on a grain hauler?"
Is this what would happen if Mr. Trucker were to contact your agency? If you can't handle trucking risks, how many bottom line dollars are flying out of your door, good buddy?
If you are utilizing specialists in this field and are taking advantage of industry training to become familiar with the many different segments of this class of business, fantastic! You may wish to look over the list of markets that have responded to our survey and have indicated that they handle the various types of trucking risks.
Now let's look at coverages and limits. Limits of liability can be obtained up to $1 million with some companies going into higher layers. Most underwriters will go over the$1 million primary limit when addressing excess policy coverages. Physical damage limits can vary from $100,000 to $250,000 with deductibles that range from $250 to $10,000. Rates for most coverages depend on what commodities are transported, where they are hauled, the number of units, (five or more would constitute a fleet and are treated differently for rating purposes), loss history, symbols applied to each unit. Bobtailing (operating a tractor without a trailer) and deadheading (operating a tractor with an empty trailer) liability is available through underwriters who specialize in those exposures.
From the federal government to the state and local level, this is a heavily regulated industry. Some risks will require filings such as PUC, ICC and MS-90, which most underwriters can provide. The U.S. Department of Transportation requires that anyone who is involved in the transportation of hazardous material receive five days of training at their safety institute. That is not exclusive to the driver of the unit. On the local front, bonds may be required for garbage trucks, towing operations, and those transporting manufactured housing units, to name just a few.
If your trucking prospect is still on hold, obtain the basic information such as vehicle information, commodity hauled, any contractual agreements, underwriting or filing requirements, then contact one of the markets listed and push the "help button." This is the reason that carriers appoint managing agents and program administrators. They possess the specific knowledge for that niche, have a trained staff that is generally assigned to a particular program and deal with it on a daily basis.
When looking for markets, pay attention to the states where they operate, the coverages available, and the size of the risk accepted because some markets limit their writings to a small number of units or do not offer to place coverage on long haul business. Do you require admitted paper? This will save both you and the MGA time and trouble.
If they are not a market for your initial inquiry, ask them to forward a list of requirements, scope of operations and other information for you to have on hand for future placements. Build a file that will serve to expedite the next risk of that category.
Another concern is loss control before and after you write the business. According to Bodine Schultz, director of loss control for Borns and Associates, Indianapolis, Indiana, the best insurance is avoidance of the accident. Borns provides inspection services and loss control programs and further adds that driver experience and safety records cannot be stressed enough in loss prevention. The most comprehensive policy cannot pay for all of the "hidden" costs of an accident, involving lost time on the job, retraining new employees, lost value of damaged vehicles, and management time.
Truckers occupational accidental/workers compensation are also coverages that can be offered to your client from most markets. Pollution issues can be addressed by several products offered by ECS of Exton, Pennsylvania. Road America underwrites the "commercial drivers legal plan" which is administered by Pre-Paid Legal, Inc., of Ada, Oklahoma. It is not available in all states. Benefits include tragic accident representation, bail bond service, overweight, no fuel stamp, load and spill logbook violations, plus personal legal issues.
This is a specialty niche that has a universe in excess of $10 billion in premium and represents the largest segment of business potential in the specialty market.
The following listing includes information compiled from our recent survey of MGAs, excess/surplus lines brokers and insurers that have indicated they specialize in all or a portion of the trucking market.
AIG, Accident & Health Division, Marketing Dept., 80 Pine St., 13th Fl., New York, NY 10005; phone: (800) 416-3797; fax: (212) 635-9006; e-mail: ah.lifeus@aig.com; Internet: http://www.aig.com (Denise Masella, marketing department).
Type of operation Insurer (member companies of American International Group, Inc.)
Territory National
Other coverages available Occupational accident
Classes not written All considered
Limits Up to $1 million combined single limit
Aggressive Insurance Brokers, Inc., 6988 Spinach Dr., Mentor, OH 44060; phone: (800) 246-3242; (440) 205-4600; fax: (440) 205-4601 (Donna Wickes).
Type of operation E&S broker
Territory Illinois, Kentucky, Ohio
Other coverages available Workers comp, trailer interchange, medical payments (depends on state), UM/UIM (limits vary by company and state)
Classes not written Coal haulers physical damage, bobtail/deadhead, flatbed steel haulers
Limits Liability: $1 million-$5 million with unlimited excess available; physical damage: available with liability or stand alone; motor truck cargo: stand alone with minimum premiums starting at $10,000
All Risks, Ltd., 1020 Cromwell Bridge Rd., Towson, MD 21286; phone: (800) 366-5810; fax: (410) 828-8179 (Kelly McGovern).
Type of operation MGA
Territory Arizona, Delaware, D.C., Maryland, Nevada, North Carolina, Ohio, Pennsylvania, Virginia
Other coverages available Truck liability, physical damage, cargo, truckers GL, workers comp
Classes not written Hazardous haulers
Limits Unlimited
Carriers and ratings British companies, Canal, Carolina Casualty, National Casualty, National Indemnity, Northland, GAINSCO. All A rated or better.
The American Agency, P.O. Box 12070; Overland Park, KS 66282; phone: (913) 661-0123; (800) 642-1872; fax: (800) 642-1329 (Charles Rogers, Spence Trogdon, Howard Handler).
Type of operation MGA and E&S wholesaler
Territory Most states except New England
Other coverages available Workers comp (some states), most other risks (all contiguous states)
Classes not written Coal haulers
Limits Auto liability: $1 million; physical damage: $125,000/$500,000; cargo: $100,000/$250,000
Carriers and ratings Empire Fire & Marine A+ VIII, GAINSCO A+ VII, Underwriters at Lloyd's
American Reliable Insurance Company (Part of the American Bankers Insurance Group), 8655 E. Via De Ventura, Scottsdale, AZ 85258; phone (800) 535-1333; (602) 807-7349; e-mail: Bruce_Bender@abig.com; Internet: http://www.americanreliable.com (Bruce A. Bender, vice president, marketing and business development).
Type of operation Insurance company
Territory Continental U.S. and Alaska
Other coverages available None
Classes not written Hazardous materials, coal, logging
Limits Liability: up to $1 million; property damage: up to $200,000; cargo: up to $150,000
Carriers and ratings American Reliable Insurance Co. A-; Voyager Indemnity Insurance Co. A- (both part of American Bankers Insurance Group)
Baldwin Sadler Corp., P.O. Box 7012; Audubon, PA 19407-7012: phone (800) 227-9040, ext. 175; fax (610) 650-9300 (Producer Services (800) 227-9040, ext. 175).
Type of operation National managing underwriter
Territory Trucking programs available in all states except Alaska, Hawaii, Massachusetts, South Carolina, Washington
Other coverages available CGL, trailer interchange, workers compensation
Classes not written "Special acceptance" available for most hazardous commodities carriers
Limits Truck liability: $1 million CSL; physical damage: $250,000 per tractor/trailer; motor truck cargo: $250,000 per tractor/trailer
Carriers and ratings Admitted insurer, A+
Bohrer-Croxdale & McAdoo, Inc., 601 South Ave., P.O. Box 2760, Springfield, MO 65801-2760; phone (417) 869-2550; (800) 779-2550; fax (417)869-5102; (888) 869-2550. (Underwriters: Donna Allen (local, intermediate and long haul truck), Diane Plank, (local, intermediate and long haul truck, public auto), and Sydney Croxdale (local, intermediate and long haul truck.)
Arkansas office: 350 Salem Rd., Ste. 6E, P.O. Box 1190, Conway, AR 77033; phone (501) 327-8161; fax (501) 327-7874; (800) 726-7707.
Type of operation MGA/E&S broker
Territory Arizona, Illinois, Kansas, Missouri
Other coverages available Property, GL, E&O, D&O, miscellaneous professional, limited workers compensation
Classes not written Farm
Limits Liability, physical damage, motor truck cargo--as needed
Carriers and ratings Empire Insurance Companies; Lloyd's Underwriters, London; National Casualty Co.; Northland Insurance Co. (no rating)
Carolina Casualty Insurance Company (CCIC), P.O. Box 575, Jacksonville, FL 32203; phone (904) 363-0900; (800) 874-8053; e-mail: Mmacon@carolinacas.com (Madison Macon, vice president, marketing).
Type of operation Insurer (designed for transportation industry)
Territory All states except Alaska, Hawaii, Massachusetts and New Jersey
Other coverages available Workers compensation (Workers Comp. Div.) Transportation Risk Services, 1901 N. Rosselle Rd., Ste. 340, Schaumburg, IL 60195; (847) 490-1901
Classes not written Refer to company
Limits Liability: (a) motor truck cargo, up to $1 million primary with higher limits available on request on fleets of over 15 units; (b) public automobile, up to $5 million primary with higher limits available upon request for fleets of 16 or more units; $1.5 million primary limits with higher limits available upon request on accounts of 1-15 units; physical damage: no limit; motor truck cargo: $1 million
Carriers and ratings A rating
Carnegie Insurance Service Corporation, 17700 Broadway, Cleveland, OH 44146; phone (440) 439-5555; (800) 362-2411; fax (440) 439-5551; e-mail: ciscocibco@juno.com (Mark Salsgiver, ext. 3226).
Type of operation MGA and E&S broker
Territory Florida, Illinois, Indiana and Ohio (Workers compensation not available in Ohio; long haul trucking liability available only for Indiana and Ohio.)
Other coverages available Garage liability and physical damage, garagekeepers legal liability, workers compensation available in Florida, Illinois and Indiana
Classes not written Hazardous material haulers (except LPG, gasoline, diesel fuel and fuel oil haulers)
Limits Liability: $5 million CSL for most risks; no limit on physical damage or cargo
Carriers and ratings Century Surety, Empire Fire & Marine, GAINSCO, Lloyd's MGA Insurance, Western Heritage
Central Insurex Agency, Inc., 800 S. Washington St., Van Wert, OH 45891; phone (800) 736-7131; fax (800) 736-7026; e-mail: ptaylor@central-insurance.com; louiseditto@central-insurance.com; dmoser@central-insurance.com (Pam Taylor, Louise Ditto, Deb Moser).
Type of operation General agency
Territory Ohio
Other coverages available General liability including stop gap
Classes not written Hazardous material, refuse haulers
Limits Liability: up to $2 million; property damage & cargo: negotiable
Carriers and ratings Northland Insurance Co. A+ VIII
Crump E&S of California Insurance Services, Inc., 7700 Irvine Center Dr., Ste. 660, Irvine CA 92618; phone (949) 753-0575; fax (949) 753-1847 (Roy O. Thomas).
Type of operation MGA
Territory California, Florida, Oregon
Other coverages available N/A
Classes not written Hazardous hauler
Limits Liability: $1 million; physical damage: open; motor truck cargo: $200,000
Carriers and ratings Scottsdale A+, GAINSCO A+
DVUA, 420 S. York Rd., Hatboro, PA 19040; phone (215) 443-3600; (800) 388-0215; fax (215) 672-7983; e-mail: info@dvua.com; Internet: http://www.dvua.com (Bill Garofalo or Rosemarie Stumpf).
Type of operation MGA and broker
Territory All states
Other coverages available N/A
Classes not written For hire and private fleets; individual owner operators--primary or bobtail
Limits All limits of primary/excess liability, physical damage, motor truck cargo and general liability
Carriers and ratings Licensed/Admitted carriers--A or better
ECS Underwriting, 520 Eagleview Blvd., P.O. Box 636, Exton, PA 19341; phone (610) 458-0570; (800) ECS-1414; fax (610) 458-8667; Internet: http://www.ecsunderwriting.com (Kate McGinn, assistant vice president, transportation customer business unit).
Type of operation Managing underwriter
Territory United States and Canada
Other coverages available and limits Limited to hazardous material transporters. Auto liability: $5 million; CGL: $40 million; non-trucking auto: $1 million; PARLL: $40 million; PLL: $40 million; property and inland marine: $10 million; transporters automobile pollution: $5 million; TSL: $2 million; umbrella: $10 million; workers compensation: by statute
Classes not written N/A
Carriers and ratings Reliance National A-
GMI, P.O. Box 701, Valley Forge, PA 19482; phone (800) 722-3229; fax (610) 933-4993 (Karen Trudel).
Type of operation MGA
Territory All states
Other coverages available Garage liability, garagekeepers liability, supplementary liability, personal effects, personal accident, workers compensation, occupational accident
Classes not written Limousine, buses, taxis
Limits Liability: $10 million CSL; physical damage: minimum $1,000 deductible for comprehensive and collision, limit per vehicle negotiable; motor truck cargo: $5,000 limit with $100 deductible
Carriers and ratings Reliance National Insurance Company A VIII
Metcom Excess, 596 Anderson Ave., P.O. Box 3140, Cliffside Park, New Jersey 07010; phone (201) 945-1414; (800) 521-1717; fax (201) 945-0724 (Joseph Barbosa).
Type of operation MGA, E&S broker
Territory New Jersey, Pennsylvania, some of New York
Other coverages available Garage and garagekeepers, dealers open lot
Classes not written N/A
Limits Auto liability: $1 million; physical damage: $100,000 (higher limits available subject to company approval); cargo: $100,000
Carriers and ratings Empire Fire & Marine, Nelson Hurst, Global, Adriatic
Miami Valley Excess & Surplus Agency, Inc., Ohio--P.O. Box 29, Miamisburg, OH 45342; phone (800) 438-0491; fax (888) 438-9834 (Fred C. Wootan). West Virginia--P.O. Box 1507, Fairmont, WV 26555-1507; phone (800) 762-5165; fax (888) 367-0440 (Lester L. Long). Kentucky--1388 Alexandria Dr., Ste. 10, Lexington, KY 40504 (Greg Seibel). E-mail: mves@worldnet.att.net.
Type of operation MGA
Territory Kentucky, Ohio, West Virginia
Other coverages available Pollution
Classes not written Will consider most classes
Limits Liability: up to $1 million; physical damage: no limit; cargo: no limit
Carriers and ratings Empire Fire & Marine A+, Zurich Reinsurance not rated, Rockwood Casualty B+
Northland Insurance Companies, 1295 Northland Dr., St. Paul, MN 55120-1146; phone (800) 237-9334; fax (612) 688-4280; Internet: http://www.northlandins.com (Non-fleet (1-10 units), market manager--Sandra Saltsman. Fleet (11+ units), market manager--Stephen Pherson).
Type of operation Uses MGAs
Territory All states except Alabama, Alaska, Connecticut, Delaware, Hawaii, Louisiana, Massachusetts, New Jersey and Rhode Island
Other coverages available Workers compensation, property, general liability
Classes not written Cargo on household movers, amusement operators, drive-away contractors, refuse and waste haulers, rentals/U-driver operations
Limits Liability: $2 million; physical damage: $500,000; cargo: varies according to each insured's need--provide most limits
Carriers and ratings A+
Princeton Risk Managers, Inc., 201 Wall St., Princeton, NJ 08540-1567; phone (609) 924-9222; fax (609) 924-8155 (David Griffith, Lisa Cavalli, Debbie Stevens, James Cannizzaro).
Type of operation Wholesale agency
Territory Connecticut (limited), New Jersey, New York (limited), Pennsylvania
Other coverages available Primary hired auto, workers compensation, excess auto liability, limits to $100 million
Classes not written Tow truck operations for auto liability
Limits Auto liability: $1 million CSL with excess limits available; physical damage: $125,000 per unit, $175,000 combined unit, $1 million terminal; motor cargo: $150,000 per unit $300,000 terminal
Carriers and ratings Greenwich A+, Indiana Harbor A+, Security Indemnity B+, Kodiak Insurance Co. B+
RISC, Inc., 750 N. St. Paul, #800, Dallas, TX 75201; phone (800) 725-7472; fax (214) 954-0999; e-mail: ATRISC@aol.com (Jim Parker or Sherry Macauley).
Type of operation MGA and E&S broker
Territory Auto liability and garage liability restricted to Texas-garaged accounts only; logging offered in Texas and all southern states
Other coverages available Garage liability, DOL, GKL, excess auto on fleets, CGL on truckers, logging equipment floaters
Classes not written Almost all classes of trucking and business auto written
Limits Liability: $1 million CSL; physical damage: no limit; MTC: $1 million
Carriers and ratings Empire Fire & Marine; Independence Casualty & Surety; Fireman's Fund County Mutual; Southern County Mutual; Reliance; General Star Indemnity; Century Surety; Albany; Atlantic Mutual; Highlands; Great American; Essex; Underwriters at Lloyd's; Unionamerica Ins. Co., Ltd, United Kingdom
Roush Insurance Services, Inc., P.O. Box 1060, Noblesville, IN 46061; phone (317) 776-6880; (800) 752-8402; fax (317) 776-6891 (Gail C. Pierce).
Type of operation MGA
Territory Illinois, Indiana
Other coverages available Hired/nonowned auto
Classes not written Hazardous material hauling
Limits Liability: $1 million with excess available up to $20 million; physical damage: $100,000 + per vehicle; motor truck cargo: as needed
Carriers and ratings Nautilus/Great Divide Company A; Scottsdale/National Casualty Company A+; MGA/General Agents Insurance Company A+
Transportation Coverage Specialists, Inc. (TCS), 17 State St., 17th Fl., New York, NY 10004-1501; phone (212) 742-0300; fax (212) 742-1413; e-mail: robertfiore@worldnet.att.net (Robert Fiore, vice president).
Type of operation MGA--full underwriting authority
Territory Available in all states except Louisiana, Massachusetts and Texas
Other coverages available Umbrella and workers compensation
Classes not written Hazardous material haulers
Limits Auto liability and GL: $1 million CSL; physical damage, motor truck cargo and bobtail also available.
Carriers and ratings Hanover Insurance Company, American Home, Cigna, Lexington, General Star, Reliance National, Lloyd's
Transportation Insurance Specialists (TIS), 930 S. Harbor City Blvd., Ste. 402, Melbourne, FL 32091; phone (407) 984-2980; (800) 444-8474; fax (407) 676-3298; Internet: http://www.tis-ins.com/ (David Tooley, Bill O'Brien, Bob Alkire).
Type of operation Full-line MGA
Territory Available nationwide
Other coverages available Occupational AD&D
Classes not written N/A
Limits Up to $1 million
Carriers and ratings Twenty companies with ratings from A+ to E&S lines, if needed
J.M. Wilson (home office), 8036 Moorsbridge Rd., Portage, MI 49024; phone (800) 666-5692; fax (616) 327-4131; Internet: http://www.JMWilson.com (Sandi Fritz).
Type of operation MGA
Territory Illinois, Indiana, Michigan, Missouri, Pennsylvania, Wisconsin
Other coverages available Combined deductible, broad form pollution, local and intermediate long haul, public auto, general liability, excess liability
Classes not written Hazardous material
Limits Liability: $2 million CSL; physical damage: unlimited; cargo: $250,000
Carriers and ratings Northland Insurance Co., Travelers, National Indemnity, Fire & Casualty of Connecticut--all A+
J.M. Wilson, 1601 Schrock Rd., Ste. D, Columbus, OH 43229; phone (800) 388-8178; fax (614) 890-6333; Internet: http://www.JMWilson.com (Jennifer Boland or Jack Rogers, Branch Manger).
Type of operation MGA
Territory Indiana, Kentucky, New York, Ohio, Pennsylvania, West Virginia
Other coverages available Combined deductible, broad form pollution, local, intermediate long haul, public auto, general liability, excess liability
Classes not written Hazardous material
Limits Liability: $2 million primary, $10 million excess; physical damage: unlimited; cargo: $500,000+
Carriers and ratings Travelers, Northland, Fire & Casualty of Connecticut, Calvert, Jefferson, GAINSCO, National Indemnity--A+ or better
J.M. Wilson, 202 N. Midvale Blvd., Madison, WI 55379; phone (800) 695-0059; fax (608) 231-3046; Internet: http://www.JMWison.com (Terry McFaul).
Type of operation MGA
Territory Illinois, Wisconsin
Other coverages available Combined deductible, broad form pollution, local and intermediate long haul, public auto, general liability, excess liability
Classes not written Hazardous material
Limits Liability: $1 million CSL; physical damage: unlimited; cargo: $250,000
Carriers and ratings Travelers Rating A-XV, Orion A-XI
McComb & Wilson--a division of J.M. Wilson, 191 Waukegan Rd., Ste. 112, Northfield, IL 60093; phone (800) 241-7080; fax (847) 501-3334; Internet: http://www.JMWilson.com (Jack McComb).
Type of operation MGA
Territory Illinois
Other coverages available Rental reimbursement, hired auto, non-owned auto, pollution buyback, trailer interchange
Classes not written Truck brokers, hazardous material, triple trailers
Limits Liability: $1 million; physical damage: $200,000 per tractor/trailer; cargo: $250,000
Carriers and ratings Travelers A--XV *
The author
Larry France is editorial director of The Insurance Market Place. He has 30 years of industry experience including sales and management positions in both standard lines and specialty market insurance organizations.
©COPYRIGHT: The Rough Notes Magazine, 1998