John M. from New Castle, PA writes: "Look, I don’t normally use my Sprinter with passengers, but sometimes I do. What if I want to take my Grandson fishing? Do I have passenger coverage on my Expediting Insurance Policy?
Yes and No…it depends on whether you have your own individual policy or if you’re leased on to a carrier and are part of their policy.
All passengers are covered if you have your own policy in your own name and you pay your own premium. In fact, there is no way for mainstream insurance carriers to exclude passengers.
Generally speaking, if you’re leased on to a carrier with their plan these group policies exclude passenger coverage. A specific passenger authorization process and additional deductions from your settlements are sometimes available.
Your question leads into not only passengers but side loads. Many Van/Sprinter Owner Operators are continually looking for ways to increase the scope of their business. They want to haul occasional “filler loads” (Side loads when stuck out waiting for their leased on company to get them back home….you know, when you’re out there staring at a Walmart sign for 2 days.)
Some companies allow no side loads at all in your contract, but in other cases the company you’re leased on to may approve use of their Liability on specific loads and charge a percentage to the Owner Operator, a 15% charge is common.
To avoid the 15% charge from your leased on company for the insurance coverage thru them, you will need your own policy that has Liability 24/7.
The benefits of purchasing your own policy include coverage and flexibility you control. The Owner Operator policy with 24/7 Trucking for Hire Liability coverage insures your needs and protects the company you’re leased on to from Liability resulting from a load for which they were not responsible.
MyCISagent Expediter Insurance Tip of the month:
Stay tuned…Next month we have a few good questions on cargo coverage.
Questions? Contact Shelly Benisch, CIC
