One would assume that as long as your Commercial Auto Liability Policy says “Primary”, your insurance company would immediately step up to the plate to pay for your accident. Unfortunately, this is not always the case.
Insurance policies are simply contracts written on one basic form or another. The question is, on which insurance form is YOUR Expediting Insurance policy written when YOU get into an accident?
Here are 2 key questions you need to ask before you secure your Expediting Insurance:
1. “Does this policy pay Primary and Non-Contributory?” Say, “I’m an Owner Operator hauling under the authority of someone else’s MC number. Will my insurance policy contract I am buying from you first look for coverage with that Motor Carrier I’m hauling for, or will they pay Primary and Non-Contributory?”
2. “Does this policy pay a Cargo loss to me even when my name is not on the Bill of Lading…it’s in the name of the Motor Carrier I’m hauling for.” Common misconception that “Additional Insured” takes care of this… A.I. status is a Liability modification, and does not extend to Cargo. It’s how the policy CONTRACT is written that extends the Cargo coverage to someone who is not ON the Bill of Lading… like an Owner Operator.
Folks, then get the answer promising coverage in writing from the insurance company Underwriting Dept, not the Agent. Sadly most Agents will be clueless of what you’re even asking, but will be very happy to take your money and tell you what you want to hear. Certificates of Liability do not hold up in court, and Agents do know THAT. If something seems too good to be true, it is probably false.
