I have a specialized, ex-military 5-ton military truck, that's being transported by a licensed and reputable local owner-operator from FT Worth to Austin, TX. Since this truck is tall (12' 5"), it will on an RGN and lowered a bit by letting air out of the tires to keep it under 14'. To verify my load is fully covered at market value vs. my actual cost, what do I need to do or ask to ensure the full coverage from damage or total loss? I know the carrier will have some coverage but I've heard there are random exclusions for over-height loads or permit issues or even it being a military vehicle. I've even heard a horror story that hitting a bridge isn't covered but that just may be urban myths. What do I ask the carrier and are there other options I can add to ensure coverage?
Im not an insurance agent, the following is my opinion related to your question. Are you hiring the trucker directly or using a broker? If hiring directly ask the carrier for a certificate of insurance listing you as additionally insured and make sure your listed as additionally insured. If you need help send the COI to your insurance company and ask them to review it with you. On the COI you are looking for the cargo insurance coverage. Cargo covers what item(s) the carrier is hauling. Make sure his limits meet or exceed your declared value. Ask the carrier if they have hauled any type of military equipment. I would send all pertinent info about the shipment to the trucker in writing, LxWxH and weight, declared value and general description of the commodity. Pick up and drop off location and if an appointment is needed on either end. Is the unit operable, who will be expected to load and unload. If inop what are the arrangements to get it loaded/ unloaded. Accidents can happen at any stage of the process so address all phases of the move. Make sure the carrier acknowledges receipt of your information. Remember you can always verify the COI with the Trucking companies insurance agent, their name will be on the COI. If using a broker the same above would be asked and relayed to them. A broker becomes your agent. They are then tasked to find and/or verify a carrier is qualified to handle the shipment. While lots of moves can easily be handled directly between the shipper and carrier, and money saved, hiring an experienced broker, who has shipped items similar to yours may be money well spent. I may also give you an additional layer of insurance if you go with a broker that has additional coverage. Hiring the correct Professionals(s) will cost more but your receiving in return: knowledge, know how, the right equipment and the proper coverage should an accident occur. You can also inquire with your insurance agent if there is coverage through or that can be added to any policies you may have. Generally my experience has been if you are named additional insured and the carrier has the proper coverage you should be covered if an accident occurs while your item is in his care custody and control. The only thing to be aware of is his deductible, it will be subtracted from a paid claim and then you would need him to make you hole. If it’s on the higher side, you could loose a few thousand or more so verify first and decide how to proceed. Try to do as much correspondence in writing and take notes of verbal conversations including date and time.
Thanks, MW. I plan to hire directly, he's a local owner-operator and he'll send his COI. I prefer to use a local owner-operator so I know who's actually hauling my stuff. It's not a cost thing to avoid a broker, it's just I got on some massive broker contact list a few years ago and I got calls every day asking if I had a load ready. It was ridiculous how many calls I got for a couple years. I must have blocked 2-300 phone numbers in my phone it was so bad. That just left a very sour taste with me regarding brokers... I used to have my 'go-to' guy for hauling equipment (I generally just need trips between Dallas, Houston, and Austin) but I think he got wrapped up in the latest immigration issues since he and his company haven't responded to my texts or emails in the past few months. I hope this new local guy will become my go-to guy as I really prefer to have someone I trust and know instead of relying on brokers to save a couple hundred bucks. The truck I need transported is operable and can be easily started and loaded/unloaded. Lots of pics were taken documenting condition too. I've sent the load out data tag that has all the dimensions to the guy and he said he's good. But being that I'll more than like need this truck and some other vehicles like it shipped back/forth between test sites, I wanted to learn more about additional coverage that I can purchase on top of what the trucker carries. I recently learned about Loadsure who offers additional coverage. I'm looking into them right now but happy to hear about other companies or suggestions too.
I used Nationwide, who got this guy. He drove all over the US picking up and dropping stuff off, and went from North Carolina, Chicago, and then the West Coast. Took awhile, but the price wasn't too bad as I had no idea the "real" condition of the truck. I bought it sight unseen for a good price from a Freightliner dealer.
Thanks for the help so far. What I was really asking about is if anyone uses their own insurance to cover transports by other truckers. For instance, you can buy one-trip insurance from Loadsure but there are too many exclusions for it to be reasonable. Seems like for most small time businesses like me that need the random 2-3 loads shipped a year, we're at the mercy of the trucker/transportation companies insurance. I'm just not a fan of that....
I've had a lot of cranes hauled for me, with retail (used) values between $30,000- $250,000. Replacement (new) costs of $150,000- 1.7mil. Almost all oversize and overweight. I've never once worried about their insurance coverage. But I don't hire off a online freight board. I think you are worried for no reason. Use a reputable trucking company.
So closing out the thread as I had my truck was delivered today by a local owner-operator with a small fleet of heavy duty trailers. Since I wasn't in a rush, he said he'd find a backhaul for me and he did with a good rate. C H Van Gundy Heavy Haul https://vangundyheavyhaul.com/ If you need a heavy haul, I recommend him.
I just carry a standard $100,000 cargo policy anymore and call in to my ins co for specific movements over that. They need the load information, route, and any serial # identifiers. I think 2.5 million was the most I ever did. It was surprisingly affordable. All though knock on wood I haven't had a claim in 15 years of being on my own. Every load I move I ask for the load valuation on the rate contract. More often than not the other party will hesitate and tell me they have never been asked that before. That always blows my mind.
I carry 250k cargo, and will increase as required. My deductible is 1% of my limits. Ive never been asked about negotiating my deductible. If there is a claim, the amount paid will be lees the deductible so it’s important to verify on the COI what it is and if it’s substantial, it may be worth shopping around with other carriers or get the carrier to commit in writing they will pay you the deductible amount should there be a claim. Depending on your policy, you may already have or can add additional coverage to equipment that is rare/one of a kind and would cause a finical hardship beyond just replacement cost if damaged, destroyed or stolen.