Know the Terms
Freight that is moved via air transportation.
Insurance that protects an insured from claims arising from injury or damage to others in the event of an accident.
A transportation document that services of the contract of carriage along with any other conditions between a shipper and a transportation provider.
Owner-operator insurance specifically for the tractor that is common and typically required under a lease agreement.
A warehouse approved by the United States Treasury Department and under bond for observance of revenue laws. The warehouse is used to store product until duties are paid and good are released properly.
Break-Bulk: The separation of a consolidated load into multiple smaller shipments.
(Also called freight, shipping, or marine insurance) A commercial trucking insurance policy designed to cover cargo during transit. It is important to verify exclusions when purchasing a policy.
A common carrier or trucking company will be held liable for all shipment loss, damage, and delay other than an act of God, public authority/enemy, shipper, or the product itself.
A company in the business of transporting products or people by land, sea, or air.
A specialized form of equipment in order to carrier an intermodal container.
Common Authority: Trucking companies who provide for-hire truck transportation to the general public.
The act of combining multiple (two or more) shipments in order to achieve a low cost of transportation.
A form of rail transportation where a container is loaded onto a flat railcar for transportation.
A type of shipment container commonly used for ocean and rail transportation. The standard size is 40’ in length although there are additional sizes such as 20’ available as well.
A contingent insurance policy often held by freight brokers that will defend against and pay settlements per the terms of a policy if the primary cargo policy held by the trucking company fails to pay a claim. It is uncommon for this type of policy.
A type of term used in freight forwarding that designates that the seller is responsible for the cost of freight charges and marine insurance on ocean shipments.
A type of trucking company focused on efficient delivery of HVP (high-value products). This typically consists of expedite shipments and can include smaller shipments as well as FTL (full truckload).
A type of company that works with buyers/sellers in dealing with customs related to import/export freight.
The act of moving goods through a warehouse to final delivery.
Transportation from origin to destination
Transportation from origin to port of entry
A trucking company specializing in the transportation of goods via ground a short distance. Generally, drayage occurs most often to/from rail yards and ports when transporting containers.
A common type of freight trailer utilized by commercial trucking companies. Typically, 48’ or 53’ in length and fully enclosed
A commercial trucking policy that provides additional coverage designed to apply in the event that primary cargo coverage has been exhausted in the event of a claim where the trucking company is found negligent.
Coverage that is very similar to Umbrella in that it pays when primary coverage has been exhausted. The primary difference between the two is that excess follows form to confirm exactly to the coverage of the underlying policy.
The movement of cargo out of the origin country.
A type of trailer that consists only as a floor and is not enclosed
Federal Motor Carrier Safety Administration – A federal entity established within the Department of Transportation for the purpose of regulating commercial trucking activities in the US. The FMCSA issues USDOT and motor carrier numbers and monitors safety compliance.
Buyer takes possession of over at origin
Buyer takes possession of cargo at destination
A person or company that provides transportation or cargo or passengers in exchange for compensation.
A government-approved area set aside for holding goods that is duty-free and awaiting customs clearance.
A company in the business of buying and selling transportation services, sometimes also referred to as a 3PL or third-party logistics provider.
A business that services as an intermediary between transportation providers and a shipper for the movement of international shipments.
An international ISO standard referring to one full container load (20’ or 40’).
Trucking companies who move shipments from point-to-point that consume the entire amount of trailer space.
The total weight of a tractor or semi
Coverage for bodily injury and property damage caused by a vehicle you hire (including rental and loaner cars) or coverage caused by non-owned vehicles (owned by others including employees).
The movement of cargo into the destination country.
A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of insurance premium.
An insurance company with the ability to underwrite business.
The act of getting an insurance quote from a licensed insurance agent.
An agreement often established between motor carriers to exchange equipment during the course of transit or with permission to move equipment on behalf of the other trucking company.
The transportation of freight use two on more modes of transportation (i.e. trucking, rail, air, ocean).
A type of logistics provides that resells intermodal capacity to customers.
Fuel tax agreements are required by the federal government and filed through each respective. These are not required for vehicles under 26,000 lbs.
The transportation of property or people over state lines.
The transportation of property within the boundaries of a state.
An agreement between an independent owner-operator and a truck company to run permanently under the authority of the trucking company.
A transportation method for smaller shipments consist than is less than a full truckload but larger than a typical small parcel shipment.
The detail coordination of a complex operation involving transportation services, people, and/or facilities.
Forms issued by insurance companies to track the date, type, and descriptions of insurance losses of the insured
A business appointed by an insurer to solicit business from agents/agency.
An endorsement to a commercial trucking or umbrella policy that proves compliance with federal regulations.
The method of transportation for cargo (i.e. rail, truck, air, ocean)
A company in the business of transporting products or people by land.
Commercial transportation insurance to cover the commodity or cargo hauled by a motor carrier.
Referred to as a driving record, this is issued by each state and shows information related to your driver license including traffic violations
A tariff utilized to classify and describe commodities into like classes.
An endorsement that can be added to a policy that provides coverage when the truck is not under dispatch and being utilized for personal use.
Insurance to cover a car in the process of being towed by a tow truck.
A driver who owns and operates his/her own truck. Owner-operators typically operate under the motor carrier authority of a trucking company under a lease agreement.
A shipment that occupies a portion of a trailer and leaves room for additional cargo. Any shipment on the truckload would remain on the trailer from origin to destination.
A specific risk or cause of loss covered by an insurance policy.
A type of commercial insurance policy that covers the truck and/or trailer if damaged in an accident. Must be a peril covered by the insurance policy
Transportation from port of entry to destination
A type of trailer fully enclosed that is temperature controlled and designed to keep perishables refrigerated.
Commercial insurance designed for trucking companies
A form of transportation-focused around the delivery of packages (generally through FedEx, UPS, or USPS.
The party that prepares and tenders cargo for shipment.
Trucks where the driving compartment and trailer are permanently attached and considered one single unit.
The sequence of processes involved in producing and distributing a product.
A form of rail transportation where a trailer is loaded onto a flat railcar for transportation.
The inherent risk involved with a transportation or logistics activity.
Transportation experts with knowledge and experience in the trucking and logistics marketplace. It is recommended you speak with an insurance agency focused around this area when purchasing trucking insurance to ensure you understand your needs and coverage.
Auto liability for commercial trucking insurance that is required by the FMCSA. The minimum coverage amount is $750,000.
Commercial auto insurance for motor carriers
Insurance coverage that increases the limit of a primary policy should a catastrophic event ever occur. It is common for this to be written in excess of Auto Liability (AL), General Liability (GL), and Workers Compensation (WC) along with other policies. This coverage would kick-in wants the primary limit has been fully exhausted.
A facility utilized for the holding of goods on behalf of another party.
Business who coordinate between agents and surplus lines insurers for specific kinds of insurance. They often have the ability to underwrite business themselves on behalf of the markets they represent.
Coverage for property that the insured takes possession of and stores at their facility
Coverage for insured employees should they be injured on the job including death benefits, medical benefits, and loss of ability.
