Understanding Trucking Industry

All right, so I'm just going to go over all the industry knowledge because knowing how these industries work is going to be a big deal. And you know, just kind of recommending the coverages. How do you fill out quotes, you know, kind of figuring out what coverage somebody may need. So let's go over. I'm going to watch this video here, make comments on it, and I'm going to explain how each coverage could really come into play here. And I'm going to do the same for personal lines and then some general commercial lines industries as well. So let's get into trucking first. So that means is they own the truck themselves and they go on a freelance basis, right? So if you've got a trucking company, Hunter's trucking company, and I've got T. Bros. Let's say, let's say I've got a trucking company but you know, I've got my authority or I might not have enough time, I might not have been in business enough time to actually get any loads or I don't have the money to really start my own authority because I know it's going to take me three to six months, even get some loads with some of these guys that work with new ventures. So what I can do is I can lease my truck on to T Bros. Authority. Now I'm going to be running under T. Bros. Authority. I'm going to still own my truck, but I'm going to be running under their authority. They can give me loads and then they'll take like 20% of the profit or something. So by doing this, I'm going to be called an owner operator. They're going to have their authority. And in this situation I would have non trucking liability. When I am not hauling for T Bros. Me and T Bros. And the broker and the shipper are all going to have this document called the bill of lading. It's going to say that Hunter, let's just say T. Bros. Is going from this place to this place using my truck, hauling a certain freight and that phrase be listed the bill of lading with the broker and such. So in that situation, I'm going to be running under their authority as an owner operator. Also I mentioned the broker. The broker's name's gonna be on the bill of lading too. So that's when he could need contingent liability and contingent al. So in that situation, that is how something like that works. I own the truck, they own the authority, I work under them, they give me loads, I lose some of the Profit it. If I really think the electronic system can get you past a weigh station as if maybe you have an air scale. An air scale is something that can be put on the trailer to another truck's wait at all times. So I guess I don't know for sure if those things will report to these weigh stations. So a couple things I want to mention there is yes, speed. So a lot of truckers speed to get their miles in. You know, if they get something 700 miles in a day, they're gonna do everything they can to really get there on time. Right. If you guys see a problem with speeding, they can add what's called a governor or a speed limiter and that can put a cap on how fast the truck is going to roll. Another thing they kind of mentioned was like, like pollution, like air pollution. I mean, I want to make sure this gets tied in. Now if you have a reefer, there's all sorts of different trucks out there. If you have a reefer that is going to be a refrigerated truck, it's going to have a refrigeration unit. You know, when they have the trailer right here, the truck, it's be right in front of the trailer right here and that's going to cool the unit. So that's the reefer. Now if you have a reefer, you might need pollution liability. The reason you might have pollution liability is because you know, if you're hauling ice cream and the ice cream melts and gets out into the soil, they can be sued for that. I always bring this example up. If somebody was hauling a tanker and it was lukewarm water, the tanker got in an accident, spilled the warm water into a creek in New York, ended up killing a bunch of trout because it raised the temperature of the river. Well, the city had ended up suing them for $276,000 for pollution damage. While shoot, that's where pollution might come into play and be really good there. You typically have got about 25,000 pollution cleanup included on the cargo policy. But obviously you're about a tenth of the way they're needed for that little lukewarm water claim. The other one is, is if, well then you got, you got pollution get rer breakdown. This is an endorsement. The reefer breaks down and all the stuff inside gets spoiled or it's gets heated, just goes bad. The other one would be is if you have driver that actually sets the wrong freaking temperature. This would be driver Eno. Driver Eno will cover driver errors on omission. If the Driver actually sends the temperature to the or sets the reefer to the wrong temperature, covering all the stuff in there as well. Okay, that's enough of that. So get on to the other deal here. So if we're looking at other types of trucking operations and what that all entails, you guys be looking at Trucking 101 here in this portal for sure. Knowing the trucking industry. So watch that video. Here's what every coverage comes into play here, okay? Primary liability, auto liability. Right, right. Covers injury and property damage to others in an accident. Not covering you. It's liability covers third party. For example, a truck rear ends another vehicle, causing damage to. To causing damage and injury to the vehicle. It's going to cover them. Physical damage, comp and collision. Covers your trucks, your trailers, stuff like that. Motor truck cargo protects the cargo while being transported. Cargo policies have a lot of variances between them. So getting to know that stuff is big. I'm just gonna get into knowing the trucking industry and I really shouldn't even talk about coverages here. So knowing the trucking industry, t. Cargo, let's get into that deal. So if you're a dump truck, you probably are not gonna have cargo. You're not gonna haul anything that's valuable. You're hauling rock, sand, gravel, garbage. Who, who freaking cares? It's stuff that probably nobody wants. So the only thing you gotta worry about there with cargo is like the, the cleanup coverage or the debris removal. You know, if you smell rock over the road, well, shoot, I mean, you know, it's gonna be. That's got to be cleaned up. So that's your worry about there. When do you what the stuff that you're gonna need for higher limits, like typically you're gonna need a hundred thousand because they're hauling General Freight. It's $100,000 worth of stuff. Livestock, you can haul 100 livestock very easy. Or 100 cattle at 25, $2,000 ahead. Well, shoot, now you need $250,000 in livestock coverage. You know, oversized, overweight, 100%. Going to need probably $250,000 in coverage there. Reefer, you might need 150,000 if you're hauling meat, maybe 250,000 for that. Because meat can be very, very expensive. But yeah, there's the idea there. If you're hauling grain, that kind of BS, you're looking at 25,000 a piece. Non trucking liabilities we talked about earlier, where if you're a lease onto somebody, you're an owner, operator, trailer change is going to Be used for people doing intermodal. Typically there's going to be a trailer interchange agreement. So if it's Amazon, you know, if you're using your buddy's trailer, that's not on trailer. Pd. General liability. Knowing the truck industry is important for like when this is going to come into play. Maybe if you're doing some advertising, maybe you get some personal injury claims. Main things be property damage, bodily injury. You put a rat strap on it, flings off and hits somebody. You know, I mean, do a little bit of work on your truck. There's not a whole lot of stuff where it's going to really come into play there. Workers comp. You know, the big thing with trucking is a lot of 1099s. They're like, they act like, they act like a employee, but there's a lot of 1099s. So knowing if they're company drivers or independent contractors is going to help you determine if you need work comp or awk ack. Awk AC is basically work comp for independent contractors. Umbrella, you know, if they're hauling something very hazardous, if it's high liability limits, very. A lot of exposure there. So understand the exposure. So Hazmat oversized could really need an umbrella. You know, people with a lot of trucks could really need an umbrella. Anything that's really pretty dangerous could definitely need an umbrella. Pollution liability like we talked about. Get the reefer, you got the hazardous. Get all that kind of stuff. Common type of operations get hazardous. Trucking. This is hazmat. This is hauling fuel, this is hauling chemicals, stuff like that. Intermodal. Intermodal means multiple forms of transportation. So it'd be a shipping container because that can be put on a truck, a train, cargo ship, anything. Usually it's going from a cargo ship to the truck. Multiple forms of transportation. Now you're hauling an intermodal container there. Reefers, refrigerated trucks. Hot shot. Typically this is for pickup trucks. Hot shot means it's a hot and ready load. Like it's. Hey, I need, I need a couple. I just sold like a, like an auto dealership could say, hey, just sold a couple. Couple vehicles online. I need these vehicles here tomorrow, hot shots to go pick them up with their gooseneck trailer and their pickup truck. Go run that thing as fast as I can. The auto dealership and call her good. You know, if they. You got a construction company handy, an excavator here tomorrow. Perfect. Hot shots putting the thing on a gooseneck. Hopping over to construction site asap. Cargo Van is pretty self explanatory. A lot of these could be final mile delivery. Final mile is the final mile in the transportation. So like you get the manufacturer to the warehouse, for example, right? Warehouse to warehouse or warehouse to retailer is a lot of the trucking operation. Retailer to home is final mile. Home to home is household. Good movers, you know, so understanding that stuff. Livestock's pretty self explanatory. You're hauling any living breathing animals. Logging is not. Hey, I'm hauling a log or two or I'm hauling lumber. Logging is. Think about like the Canadian forest where they're in there deep in the woods with the flatbed trucks, all the rails on the side, hauling 40 logs going down the logging trail and the woods, you know, that is why it's expensive for logging. It's. You're. You're in the middle of the woods on the logging trails and obviously on the highway most of the time. But you know, going from a lumber yard is not logging. You know, Garbage trucks, pretty self explanatory. You got a garbage truck picking up waste collection, you know, stuff like that. Also debris removal, you know, you're hauling debris from a, from a, from a construction site to, to a landfill. Knowing if they're going to a landfill or not is a big exposure cement mixer. This is actively readying or mixing cement as your, as you're delivering to the job site. A lowboy truck is usually low, used for oversized lowboy, step deck. Whatever you want to call. It's a couple different ones there. It's a trailer that goes. It's really low to the ground and then it dives down as you have the wheels to get a wheel trailer dives down. This thing can haul really heavy oversized stuff. So you can get onto the bridges. Drive van's the most typical stuff. It's your. It's like you think of a semi truck. This is every single trailer you see. It's the dry basic van, you know, trailer, whatever, oversized. We just went over that. Bulk hauler, usually hopper bottom. This is gonna be bulk commodity. Hauling sand, gravel, feed, you know, kind of like a. Not liquid obviously, but like something that conforms to the shape it's taken, you know. So dirt, whatever the case is, that's a bulk commodity. Auto hauler, hauling auto. You know, they're typically hauling autos in this in fives or nines. So ask if you had a five auto hauler. You got a nine auto hauler. And so you'd want to know that. And then sometimes they haul exotic cars. So Ask about that stuff. Final amount delivery. Hey, this is. I'm. I'm a Amazon delivery guy. I'm an appliance insulation guy. I'm final mile at the place. Oil field truck is oil used in oil and gas industry transport equipment, water. You know, I don't know what. There's no really oil field truck. It's just. I should really just say the oil field industry, they can haul gasoline or oil that's a tanker because we're hauling in a tank, right? So that stuff would be hazardous. Now it depends on the class of hazmat because some require 5 million, some require 1 million. Just depends on the class of hazmat there usually like the hazmat permits and all that kind of stuff on the back they have the Hazmat endorsement, their CDL. It's usually the 5 million. If they're hauling water again, that's kind of same deal. It's fracking water is what they call it. It's water drawn up that's been separated from the oil, so it's still contaminated stuff. House of the movers home to home standing gravels like a bowl collar. Dump truck is a dump truck. Not a semi with a truck on the. Or the tray dumping trail in the back. It's a dump truck. These guys typically do not need cargo. But always good to ask, right? Types of carries private carriers, somebody hauling for themselves. Common carriers hauling. It's like I'm up, I'm up in the board. I'm looking for loads they're hauling through the low boards. Free contract carrier is somebody's got a contract. I got a contract with Amazon. All I haul is Amazon stuff. Freight forwarders. One that hires itself out to carry the goods of those and in which the contract. So it's forwarding the freight. So you have those type of operations. Here's some information on that stuff. So look at this thing. Exempt. If you're exempt for hire, means you're hauling usually just straight up agricultural products. If you're hauling straight livestock, straight grain, most likely exempt. This means you do not need the eldest. You do not need an MC number. You are exempt from the industry. But if you're hauling fertilizer or anything like that, automatically you are no longer exempt. I have three guys who haul almost always just straight grain, but they haul a little fertilizer once a while and no no longer you're exempt. You still need elds and MCs and MC numbers. Now MC number is your authority. To get your authority, it takes you about 25 days to get your authority they have a 10 day vetting period. So you can't sell insurance. Somebody goes hey, just apply for authority yesterday. Want insurance, they can get insurance. But you'd be wasting your dang money because they don't even, they can't, they're not doing anything for the first 10 days, the vetting period. After that you get your insurance, activate your authority and then once the time limit's up, boom. Once been the 25 days, boom. Now you can get your authority becomes active. USDOT number is needed for anybody who according vehicle that weighs over 10,000 pounds all hazardous stuff carries nine or more passengers. Basically like that. It doesn't matter if you're in state intrastate or intra or inter. Intras in state inters moving going throughout the states. BOC3 filings. It's not something we do. It doesn't really matter. It's like just a representative saying that they can like they can represent the truckers from state to state. UCR doesn't freaking matter either. MCS 90 endorsements. This is the endorsement the insurance company gives or has in the policy. They give it to the fmcsa. The FMCSA is the Federal Motor Carrier Safety Association. They regulate all the trucking side. So it's giving the FMC and say saying hey, they have these minimum limits right here and but it's going to also say that hey, we're going to cover this guy no matter what. So if he's hauling hazmat, he's listed as a egg hauler, agricultural hauler. We're still covering them but we're gonna go sue the insured for it after because he lied in his application. Hey, you forgot a truck on your policy. Forget about it, we'll cover it. But we're gonna sue the crap out of you tomorrow. So it's a guarantee, the FMCSA saying that we're covering this stuff. That's why you can't just go say hey, I don't get 10 trucks in the policy, just gonna remove five of them. Well because the FMCSA or the insurance company is still liable for them. So they want to make sure you actually get rid of them. That's where they prove a bill sale, lease termination, some BS like that. Right. 4B state filing. This is filed by the insurance company to verify the carrier has minimum liability limits in that state. Texas orders requires state filings, but it just depends on the state. If they're intro state and they need state filings and the state requires it, go and add it on there form H for household good movers. Intra versus inter. We went over this, read this deal. I'm not going to get into all this deal, but this is very, very important here. When do you need a CDL? There's a Hazma endorsement on the CDL. Again, like we're talking about here. Class A CDL is required for anybody hauling or anybody operating unit 26 pounds or more. This is an actual CDL. A Class B CDL does not classify as an actual CDL. This is for something like box trucks, anything under £26,000. But I'm just reading this here. Providing the tow towed vehicle is one to those pumps or more or for towing vehicles. Huh? I have no idea. Mox truck guys might have a class B cdl, Class C, whatever. I think class D is like just a normal driver's license bill of lighting. We kind of talked about this deal, so. Yeah, that's kind of the trucking industry there. Everybody's got an ELD and ELD's electronic logging device. Basically, if you have an MC number, you're required to have an ELD. You. Let's see here. If you're an intra state operation, do you need an eldest? If your truck is older than 2000, the year 2000, you do not need LD because your truck's too old. So you gotta do paper logs. You still gotta log your hours. Just like what they were talking about the video. No more than 11 hours a day. And that's what it is, you gotta log your hours. Yeah, you might have an ELD if you're interest state still, but just kind of depends. If you're exempt for hire, you do not need ld. If your trucks are on sales and you need years old or 2000, you're not an ELD. So there's that. ELDs can also help with risk management. They can help with, hey, your windows down. Hey, there's all sorts of stuff going on with your truck here. So yeah, that's the basics of trucking. Yeah, that's basically trucking. I'll get more into the risk management on the deeper side. But this will help you quote, help you ask a question or help you wonder what questions to ask. Stuff like that. So that is the trucking industry.