Bulk Commodity Carrier Truck Insurance

Great West has modified its policies to better serve those who haul bulk commodities for others. We can insure carriers of both hazardous and non-hazardous materials.

Motor Carrier Coverage

The Motor Carrier coverage form was changed so no endorsement or election has to take place for us to insure auto liability for a covered pollution loss caused by cargo. An example is a tanker that has overturned, and its cargo is spread over the landscape causing damage. The motor carrier form also includes a wrongful delivery exclusion clarifying that Auto Liability coverage is provided until the truck/trailer delivery has been completed. An example of a covered auto unloading loss is a delivery hose rupturing before the load is emptied.

Cargo Coverage

We have also improved our Cargo coverage by not excluding loading, unloading, or damage to cargo from misdelivery. These are two major coverage features that bulk commodity carriers should have. An example is gasoline cargo damaged when unloaded into a customer’s half-full diesel underground tank.

Commercial General Liability

The third coverage modified for bulk carriers is Commercial General Liability (CGL). When a truck delivery is complete, any subsequent bodily injury or property damage liability loss moves to the CGL form for completed operations coverage. Other companies’ CGL forms call for a special endorsement -- entitled Misdelivery of Liquid Products coverage -- to be attached. While this form extends CGL coverage for a liquid products misdelivery, we know of no form used by other companies that covers misdelivery of a dry or gaseous product. Great West’s CGL forms do not exclude coverage for the misdelivery of any product even though the cause of the loss was the unloading of a truck or trailer at the wrong location or into the wrong receptacle. An example is mixed gas and diesel that is later pumped into diesel trucks, causing the engines to seize; or brown flour put into a white flour bin that would cause a subsequent bread production run to be scrapped. In these examples, note that the supply lines and bins must be purged, and there may be downtime.

Physical Damage Coverage

The Physical Damage coverage does not have any restrictions on stainless steel or insulated tankers. Another factor to keep in mind with any type of specialty trailer is that if there is a repairable loss, repairs may be time consuming. Our included coverage for downtime at $450 per week for up to eight weeks may apply if you have no spare or reserve trucks/trailers of that type, and the 35 day deductible is met. Another feature is that one Physical Damage/Cargo deductible applies to a single unit loss involving a covered tractor, trailer, and/or cargo. Instead of a deductible applying to each of the units involved in a covered loss, only the highest deductible of the three applies when the loss occurs away from your premises.

Optional coverages that may be helpful are:

• Electronic Equipment coverage, including coverage for satellite communications and tracking

• Comprehensive Physical Damage coverage if tank implosion is a concern

• Rental Reimbursement coverage if you have to rent a replacement unit within 24 hours of a covered loss to your owned unit

• Inland Marine coverage on equipment not a part of the truck or trailer (for example, a portable pump)

• Cargo coverage for the infidelity or dishonesty of drivers

• Commercial General Liability coverage for tank washing you may do for others

With the rising cost of new and used tank trailers, you can talk to our physical damage adjusters if you need help in establishing actual cash value for insurance purposes.