Exposure Abstract
|
Lines of Insurance |
Areas of Concern |
Risk* |
Section |
|
Commercial Automobile |
Vehicle crashes and property damage incidental to the delivery of cargo; vehicle crashes incidental to the operation of the business (e.g., sales and banking); theft and vandalism of vehicles |
H |
Assmt |
Controls |
|
Liability |
Premises defects; contractual liability |
L |
Assmt |
Controls |
|
Property - Crime |
Employee theft; burglary; vandalism |
H |
Assmt |
Controls |
|
Property - Fire |
Faulty electrical wiring and equipment; repair operations; improper handling of flammable liquids |
L |
Assmt |
Controls |
|
Property - Inland Marine / Business Interruption |
Motor truck cargo liability; business interruption; loss of, or damage to, goods in transit; accounts receivables; equipment; signs |
H |
Assmt |
Controls |
|
Workers' Compensation |
Management commitment; worker training; operational exposures of strains, falls, machines, powered industrial trucks, noise, and hazardous substances |
M |
Assmt |
Controls |
|
*Risk: L-Low, M-Moderate, H-High |
[ Exposure Abstract ]
Description of Operations
Firms of all kinds rely on trucks for pickup and delivery of goods because no other form of transportation can deliver goods door to door. Even if goods travel in part by ship, train, or airplane, trucks carry nearly all goods at some point in their journey from producer to consumer.
General freight establishments handle a wide variety of commodities, generally palletized, and transported in a container or van trailer. Commodities transported may include hazardous and high-value materials. The establishments in this industry group provide a combination of the following network activities: local pickup, local sorting and terminal operations, line-haul, destination sorting and terminal operations, and local delivery.
Local trucking establishments primarily carry goods within a single metropolitan area and its adjacent non-urban areas. Long-distance trucking establishments usually provide trucking between metropolitan areas, which may cross North American country borders. Included in this industry are establishments operating as truckload (TL) or less than truckload (LTL) carriers.
Specialized freight trucking, which, because of the freight's size, weight, shape, or other inherent characteristics, requires specialized equipment, such as flatbeds, tankers, or refrigerated trailers, will not be specifically covered in this report. While businesses that provide transportation of their own products are also not specifically covered, many of the areas of this report will address exposures to these businesses, as well. Owner-operators (drivers who operate their own truck) are only addressed in the context of the broader trucking-business operation.
Facilities
The typical general freight trucking establishment will have a terminal facility/facilities that includes offices, docks, temporary storage, and maintenance areas.
People
Truck driving has become less physically demanding as newer trucks have more comfortable seats, better ventilation, and improved, ergonomically-designed cabs. Although these changes make the work environment more attractive, driving for many hours at a stretch and unloading cargo can be tiring. Local truck drivers, unlike long-distance drivers, typically return home in the evening. Over-the-road drivers may be on the road for days to weeks at a time. Some companies use two drivers on very long runs - one drives while the other sleeps in a sleeper berth behind the cab. "Sleeper" runs may last for days, or even weeks, usually with the truck stopping only for fuel, food, loading, and unloading.
Local delivery truck drivers usually unload the merchandise transported. They may have helpers if there are many deliveries to make during the day, or if the load is heavy or bulky. Typically, material handlers load the trucks and arrange items to improve delivery efficiency. Customers must sign receipts for goods. At the end of the day, drivers turn in receipts, records of deliveries made, and any reports on mechanical problems with their trucks.
The driver's responsibilities and assignments change according to the time spent on the road, the type of payloads transported, and vehicle size. From a loss control perspective, it is critical that all drivers be carefully selected and trained, and provided with well-maintained vehicles.
Equipment
Vehicles used in local delivery operations can be of any size depending on the commodity being transported. The majority of vehicles will typically be small straight trucks or vans with a gross vehicle weight rating (GVWR) under 26,000 lb ( kg). Vehicles used in long-haul operations are typically tractor semi-trailers or longer combination vehicles where multiple trailers are pulled by a single tractor.
Materials handling equipment are typically needed to load/unload products from the vehicle. Requirements will vary depending upon the size of the operation and the commodity being handled. Common materials handling devices include conveyor belts, drag lines, hand-trucks, pallet jacks, and powered industrial trucks.
Processes
When transporting merchandise, the driver is responsible for all activity until the product has been delivered and accepted by the customer. Drivers need to be carefully trained in the delivery process to assure that no damage results to the product or premises during the delivery operation.
[ Exposure Abstract ]
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