Do you have the right coverage?
Understanding your requirements as a carrier to maintain minimum insurance coverage is not only a suggestion but a legal requirement.
Ensuring you have the right insurance doesn’t necessarily mean the minimum coverage, but the amount required to protect you and your fleet in a collision occur.
For starters, when is the right time to confirm you have the correct insurance in place? You're probably thinking "before I have my commercial vehicle on the road" and you are absolutely right.
Here is an example I want you to consider:
When you first are plating your commercial vehicles, one of the requirements in Alberta to successfully obtain your Safety Fitness Certificate is showing proof of insurance coverage. Well, when you first start out, possibly you are hauling a 40' tandem axle dry van with your tractor. You plan on hauling pillows for Sleep Country.
For the first year or so, life is great and you say to yourself "hey, I can really expand this business by hauling other commodities and not just pillows for more profits."
Next thing you know, you're hauling computer chips from the border at Sumas, BC and taking them to Calgary, Alberta as these are crucial chips for an Amazon warehouse and the profit is too good to refuse.
You think to yourself, "I have a 40' dry van, and all of the chips are on pallets - this is a no-brainer."
On your first trip, you're navigating through the rocky mountains during one of the worst snowstorms western Canada has experienced in some time. Unfortunately, too much snow is on the highways and you lose control. Your trailer and all of the precious cargo are on the side and spilling out the back of the trailer.
Thankfully no one is injured, except maybe your pride - but the load is a total loss. $3,500,000.00 worth of computer chips is gone.
The next morning, when working with your insurance provider, going over the details of what happened, they ask "okay so how many pillows were lost in the accident?"
You respond, "pillows? No, I was hauling these super fancy computer chips for a state-of-the-art warehouse in Calgary, Alberta and all of them were destroyed..."
On the other end of the phone is silence, 3, 4, 5 seconds - you say "hello?"
Your insurance provider clears their throat and advises you that your cargo coverage was specific to pillows as that is what you were hauling at the time your policy was approved and you had failed to advise them that you instead were going to be hauling fancy computer chips. They go on to advise you that unfortunately, you do not have coverage for the total load you were lost and would be responsible to refund the company on your own dime...
Now, is this a realistic example? Maybe. Do you think situations like this take place for companies each and every day? Absolutely.
I work closely with excellent insurance advisors that can help you get set up, or take a second look at your current policies.
Send me a message or email at firstname.lastname@example.org and I’ll gladly connect you with the best.
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