Category Archives: Commercial Auto Insurance

Insurance Loss Runs: How Do They Work?

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An insurance loss run is a report that lists all claims made on a particular insurance policy over a specified period of time. Loss runs are typically requested by insurance underwriters when evaluating an insurance application or renewal, and they can also be used by policyholders to help identify trends or potential issues with their insurance coverage. Loss runs typically include information about the date and type of loss, the amount of the claim, and the status of the claim (e.g., open, closed, pending). They may also include details about the policyholder’s insurance coverage.

Depending on the number and type of open claims on your report, there will be a section with a reserve fund. An insurance company sets aside a certain amount to cover claims. Nevertheless, the final cost of a claim can vary from the set aside amount.

Insurance Premium Audit

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Your insurer conducts a premium audit to become sure you have paid the proper premiums over the period of the policy for the insurance coverage you need.

By analyzing your company’s financial records, an insurance premium audit determines your actual risk exposure. Every year, your insurance company conducts an audit of your policy.  

Typically, when you start a new insurance policy, you estimate your business costs, payroll, and income.  Audits are performed by insurers or independent auditors at the end of policy periods to determine gross revenue and payroll data for individuals or businesses.

 Auditing an insurance policy should follow several best practices:

To ensure a successful audit, it is crucial to plan ahead and collect all the necessary documentation in advance. Organize your records and documents so the auditor can easily access them. Despite the possibility of higher premiums, be honest about the business’ operations and risk management practices. You should ask the auditor questions if you have any concerns or if something is unclear.

As a general rule, an insurance audit is conducted to ensure that the insurer has the right insurance premiums in place to protect against potential risks. In order to ensure a smooth and efficient audit, businesses should follow these best practices.

What is DOT Number?

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A DOT or United States Department of Transportation Number is issued by the Federal Motor Carrier Safety Administration (FMCSA). It is a unique identifier assigned to companies operating commercial transportation services, either for cargo haulage or transporting of passengers. The primary role of FMCSA is to improve highway safety for all road users. The agency uses the DOT number for different purposes. They include compliance reviews, audits, collecting safety information, crash investigations, and compliance reviews for certain vehicles engaging in interstate commerce. Registering a USDOT number involves several requirements, and one of the basic requirements is insurance coverage.

Do I Need a DOT Number?

You will be required to file a USDOT number in most states in the United States if you own a commercial vehicle that:

–       Weighs more than 10,000 pounds

–       Plies the interstate routes

–       Transports up to 8 passengers for payment

–       Transports  more than 15 passengers for compensation, even if you don’t carry them for payment

–       Transports materials deemed hazardous by the Secretary of Transport

Operating Authorities Under FMSCA

A certain amount of insurance coverage is required to get an operating license and meet other obligations in the US commercial transport industry. As a commercial vehicle operator, the type of operation your company can run, types of cargo you are permitted to carry, and the insurance requirements will be dependent on which operating authority granted to you by FRSCA. The following are some of the operating authorities under FMSCA:

–       Household Goods Motor Carrier: This is for vehicles that transport household goods for general household use from factories or stores.

–       Motor Carrier of Property (Except Household Goods):  This authority is granted to for-hire motor carriers transporting regulated goods, except household goods.

–       Broker Household Goods: This applies to individuals, corporations, or partnerships that arrange transportation of household goods for compensation.

–       Broker of Property: This is for individuals or companies that arrange transportation of property for compensation, except household items.

–       United States-Based Enterprise Carrier of International Cargo

–       United States-Based Enterprise Carrier of International Cargo (Except Household Goods)

Having ascertained the type of operating authority your company requires, you will need to obtain and submit proof of the appropriate insurance coverage to the FMSCA in order to get a USDOT number.

Types of Insurance Coverage Required for FSCSA Registration

Most of the operating authorities explained above have various types of amount of insurance coverage requirements. Some of them are:

–       Public Liability Insurance: This is meant to cover liabilities from property damage, environmental restoration, and bodily injury. The required coverage amounts are  $750,000 to $5 million for freight, $3,000 for non-hazardous freight transported in vehicles weighing 10,000 pounds or less, and $5,000,000 for passengers.

–       Proof of cargo insurance: This is required for both household goods motor carriers and freight forwarders. The coverage amount is $5,000 per vehicle and $10,000 per occurrence.

–       A Surety Bond: This is for both brokers of freight and freight forwarders. A surety bond of $75,000 and a trust fund agreement of $75,000.

–       Service of Process Agents for all operating authorities

–       Endorsement for Motor Carrier Policies of Insurance

After completing your registration, your operations will be monitored under the New Entrant Safety Assurance Program for 18 months. If after the 18 months, you are deemed to be compliant with the regulations, you will then be issued a permanent operating authority.

Commercial Property Insurance Classification

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Commercial Property Insurance Classification: 

Air Conditioning, Heating, and Refrigeration Dealers

Aircraft – stored in the open

Aircraft Parts and Accessories Dealers.

Airline Passenger Terminals

Airplane Hangars – no repairing

Airplane Hangars – with repairing

Amusement Equipment – outside

Amusement Parks – recreational buildings

Anhydrous Ammonia Dist.

Antique Shops

Apartment Hotels – no restaurant

Apartment Hotels – with restaurant

Apartment Mercantile

Apartments

Apartments – condominiums

Apartments – garden

Appliance Sales – not televisions, radios, or phonographs

Appliance Sales – sewing machines

Appliance Sales – televisions, radios, or phonographs

Appliance Service – not televisions, radios, or phonographs

Appliance Service – sewing machines

Appliance Service – televisions, radios, or phonographs

Archery Ranges – recreational buildings

Armories

Army and Navy Stores

Army Post Exchanges

Art Galleries – not commercial

Art Galleries – sales

Art Studios

Art Supply Stores

Asylums

Athletic Equipment and Sporting Goods Stores – retail

Athletic Equipment and Sporting Goods Stores – wholesale

Auction Galleries – furniture

Auction Galleries – not furniture

Auditoriums – no scenery

Auditoriums – with scenery

Automobile Body Repair Shops

Automobile Car Washes

Automobile Garages – parking or storage

Automobile Glass Shops

Automobile Paint Shops

Automobile Part or Accessory Stores

Automobile Repair Shops

Automobile Sales – no service

Automobile Sales – office only

Automobile Sales and Service

Automobile Salvage – wrecking stores

Automobile Salvage – wrecking yards

Automobile Seat Cover or Top Shops

Automobile Service Stations Automobile Tires – see tires

Automobile Washes

Bakeries – retail – no baking

Bakeries – retail with baking

Bakeries – wholesale – no baking

Banks

Barber and Beauty Supply Stores

Barber Shops

Bars – no cooking

Bars – with cooking

Baseball Parks – grand stands or bleachers

Baseball Parks – recreational buildings

Bathhouses

Baths

Beauty and Barber Supply Stores

Beauty Parlors

Bedspread or Blanket Stores – retail

Bedspread or Blanket Stores – wholesale

Beer Stores

Beverage Stores – non-alcoholic

Bicycle Rental

Bicycle Service

Bicycle Stores

Billboards

Billiard or Pool Halls

Blanket or Bedspread Stores – retail

Blanket or Bedspread Stores – wholesale

Bleachers – outside

Blood Banks

Boarding Houses

Boat Dlrs. – no repairs

Boat Docks

Boat Repair Shops

Boat Storage – buildings

Boat Storage – yards

Book Stores – second hand

Book, Magazine, and Stationary Stores

Booths – exhibit – outside

Bowling Alleys

Bridges

Builders’ Risks

Building and Loan Assn. Offices

Building Material Dlrs. – not second hand

Building Material Dlrs. – stores – second hand

Building Materials Dlrs. – yards – second hand

Bus Stations or Terminals

Cafeterias

Camera Stores

Camps – all buildings except dwellings

Candy Stores – no food served

Car Washes

Carpet or Rug Cleaners

Carpet or Rug Stores

Caterers

Caves – recreational

Cemeteries – all buildings except dwellings

Cemeteries – tombstones

Chemical Laboratories

Children and Infants Clothing Stores

China and Glassware Stores

Churches and Synagogues – including auxiliary buildings, except dwellings, habitational, or schools

Cleaners and Dyers Plants

Cleaners and Dyers Receiving Stations

Clinics, Dispensaries, and Infirmaries – offices only

Clinics, Dispensaries, and Infirmaries – other than offices

Clothing Stores – children and infants

Clothing Stores – men and boys 14 years or older

Clothing Stores – other

Clothing Stores – see Army and Navy, Department, Discount, Furs, Millinery, Mens Haberdashery, Neckties, Shoes, and Womens Specialty.

Clothing Stores – women and girls 14 years or older

Clubs – country, golf, polo, tennis – no cooking

Clubs – country, golf, polo, tennis – with cooking

Clubs – health

Clubs – lodges, fraternal

Clubs – riding

Clubs – swimming

Coal Yards

Coal, Fuel, Oil, Wood, or Ice Dlrs.

Coffee Stores

Coin or Stamp Stores

Cold Storage Plants – lockers

Concessions – check room, etc.

Condominiums – apartments

Condominiums – apartments –

Confectionary Stores – food served, no cooking

Confectionary Stores – no food served

Confectionary Stores – with cooking

Contractors – Construction and Maintenance –

Contractors – construction and maintenance – offices

Convalescent or Nursing Homes

Convention Buildings

Convents

Copy and Duplicating Services

Cosmetics Dlrs. – wholesale

Cosmetics Stores – retail

Cotton Compresses

Cotton Merchants

Cotton Storage Warehouses – baled

Crematoriums

Currency Exchanges

Dairy Product Stores – food served, no cooking

Dairy Product Stores – no food served

Dairy Product Stores – with cooking

Dance Halls

Day Nurseries

Dealers – see store listings

Delicatessens – no cooking

Delicatessens – with cooking

Dental Laboratories

Department Stores

Diaper Service Laundries

Discount Stores

Dog Kennels

Door, Window, and Millwork Dlrs.

Dormitories

Drawbridges

Dressmaking Shops

Drug Stores – retail

Drug Stores – wholesale

Dry Cleaners – plants

Dry Cleaners – receiving stations

Dry Goods Stores – retail

Dry Goods Stores – wholesale

Dwellings

Electric Power Co.

Electronic Data Processing Centers

Engine Repair – small engine

Engraving – not photo engraving

Equipment and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Equipment Rental Dlrs. – no television

Equipment Rental Dlrs. – with television

Equipment, Furniture, and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Exercise Studios

Exhibition Buildings

Exterminators or Fumigators – office

Exterminators or Fumigators – other

Fabric Stores – retail

Fabric Stores – wholesale

Fair Grounds – buildings

Fair Grounds – stands and booths

Farm Machinery and Equipment Sales

Farm Tractor Sales – with repairing

Farm Tractor Sales – without repairing

Feed, Hay, and Grain Stores

Fire Extinguisher Service

Fire Stations

Five and Ten Cent Stores

Fixtures and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Fixtures, Furniture, and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Florists – greenhouses – including boiler rooms and sheds

Florists – shops – retail

Florists – wholesale

Fraternity Houses

Freight Terminals – no explosives

Freight Terminals – with explosives

Frozen Food Dlrs. – meat, fish, or poultry

Frozen Food Dlrs. – not meat, fish, or poultry

Fruit or Vegetable Stores – retail

Fruit or Vegetable Stores – wholesale

Fuel Oil, Gasoline, or Kerosene Dlrs.

Fumigators or Exterminators – office

Fumigators or Exterminators – other

Funeral Homes

Fur Stores – including pelts

Furniture Stores – including house furnishings

Garbage Works – reduction or incineration

Gas Companies

Gas Dlrs. – liquified petroleum gas

Gasoline Dlrs.

Gasoline Stations – see Automobile Service Stations

Gemstone – cutting or polishing

General Stores

Gift Stores

Glass Shops

Glassware and China Stores

Golf Clubhouses

Golf Courses – miniature – buildings

Golf Driving Range – buildings

Grain Elevators – country

Grain Elevators – terminal

Grandstands

Greenhouses

Greeting Card Stores

Grocery Dlrs. – wholesale

Grocery Stores – retail – over 4000 square feet

Grocery Stores – retail – small

Grocery Stores – retail receipts of $500,000 or more and area over 3,000 square feet

Gunsmith Shops

Hair Stylist or Designer Salons

Halls – other

Halls – union

Hardware Stores – retail

Hardware Stores – wholesale

Hatcheries – poultry

Health Clubs

Hearing Aid Stores

Heating, Air Conditioning, and Refrigeration Dlrs.

Hide Stores – raw – not furs or pelts

Hobby Stores

Homes for Aged

Hosiery Stores

Hospitals

Hospitals – veterinary

Hospitals Equipment Rental Stores

Hotels – no restaurant

Hotels – with restaurant

Household Appliance Stores – not radios, televisions, or phonographs

Household Appliance Stores – radios, televisions, or phonographs

Household Appliance Stores – sewing machines

Housing Projects

Ice Cream Stores – no cooking

Ice Cream Stores – with cooking

Ice Dlrs.

includes restaurants

Iron or Steel Dlrs. – not scrap

Iron or Steel Dlrs. – scrap

Ivory or Ivory Products Dlrs.

Jails

Janitors Supply Dlrs.

Jewelry Stores – retail – imitation or novelty

Jewelry Stores – retail – other

Jewelry Stores – wholesale – imitation or novelty

Jewelry Stores – wholesale – other

Juice and Syrup Sales

Junk Dlrs. – buildings

Junk Dlrs. – yards

Kennels – dogs and pets

Laboratories – chemical

Laboratories – dental

Laboratories – medical

Laboratories – photo finishing

Laboratories – research, development, and testing

Laboratories – X-ray

Laundries – plants

Laundries – receiving stations

Laundries – self-service

Leather or Hides Stores – heavy, rough, or sole leather

Leather Products Stores

Libraries – commercial

Libraries – other

Light Bulb or Tube Stores

Lighting Fixture Stores

Liquor Stores

Livestock Sales Barns

Locksmiths Shops

Luggage Stores – leather

Luggage Stores – other

Lumberyards – buildings

Lumberyards – yards

Machinery or Equipment Dlrs. – farm – includes repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – no repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – with repairing

Machinery or Equipment Dlrs. – others – includes repairing

Machinery or Equipment Dlrs. – tractors only – no repairing

Machinery or Equipment Dlrs. – tractors only – with repairing

Magazine Dist.

Mail Order Houses

Marine Supply Dlrs.

Mausoleums

Meat, Fish, Seafood, or Poultry Stores

Medical Laboratory

Mens and Boys Clothing Stores – 14 years or older

Mens Haberdashery Shops

Mental Institutions

Metal Scrap Dlrs.

Mill Yards

Millinery Shops

Missions

Mobile Home Parks – laundries – tenants only

Mobile Home Parks – offices

Mobile Home Parks – recreational buildings

Monasteries

Motels – no restaurant

Motels – with restaurants

Motion Picture Film Exchange

Motion Picture Production – Development, printing, editing, and subsequent operations

Motion Picture Studios

Motion Picture Theaters

Motion Picture Theaters – drive-in

Motion Picture Theaters – drive-in – speakers and screens

Museums – aquarium

Museums – commercial

Museums – other

Musical Instrument Stores – brass

Musical Instrument Stores – other

Navy Ships Service Departments

Necktie Stores

Newspaper and Magazine Stands

not bars, food, furniture, restaurant

not bars, food, restaurant (includes furniture)

not bars, restaurant (includes food)

not restaurant (includes bars)

Notion Stores

Nurseries – greenhouses

Nurseries – other

Nurseries – stock in the open

Nursery Schools

Nurses Homes

Nursing Homes

Office Fixture & Supply Dlrs.

Office Furniture, Fixture, and Supply Dlrs.

Office Machine Dlrs. – no computers

Office Machine Dlrs. – with computers

Office Machine Service

Office Services – mailing, addressing, copying, duplicating

Offices – government

Offices – other

Offices – physician, dentist

Oil Distributing, Terminals, and LPG Tank Farms – excluding stock

Oil Distributing, Terminals, and LPG Tank Farms – including stock

Oil or Gas Well Supply or Equipment Dlrs.

Oil Refineries – petroleum

Oil, Gasoline, or Kerosene Refineries

Optician Stores

Orphan Homes

Packaging Services – packing and crating

Paint or Wallpaper Stores

Painting or Picture Stores

Paper Product Stores

Parks – recreational buildings

Pawn Shops

Penal Institutions

Penny Arcades – recreational buildings

Pet Shops

Pharmacies – no cooking

Photo Finishing Laboratories

Photocopy and Duplication Services

Photographic Supplies Stores

Photography Studios

Picnic Grounds – recreational buildings

Playgrounds – recreational buildings

Plumbing Dlrs.

Police Stations

Pool and Billiard Halls

Precious Stone Stores

Precision and Scientific Tool and Instrument Stores

Premium or Coupon Redemption Stores

Produce Stores

Property in the Open

Psychopathic Institutions

Public Works – sewage

Public Works – water

Race Tracks – recreation buildings

Race Tracks – stables

Radio or Television Service Shops

Radio or Television Stations

Radio or Television Studios

Radio or Television Towers and Antenna

Rag Dlrs. – second hand

Record or Tape Stores – retail

Record or Tape Stores – wholesale

Recreational Centers – recreational buildings

Refreshment Stands – no cooking

Religious Goods Stores

Rental Service Stores – not contractors’ equipment

Rental Service Stores – not contractors’ equipment or television

Restaurant Fixture and Supply Dlrs.

Restaurant Furniture, Fixture, and Supply Dlrs.

Restaurants

Retail or Wholesale Stores –

Retirement Homes

Rifle Ranges – buildings

Rooming Houses

Rubber Stock Dlrs. – salvage

Rug or Carpet Cleaners

Sales Barns – stables

Salvage Goods Stores

Sanitariums – not hospitals

Savings and Loan Associations

Schools – bleachers or grandstands

Schools – commercial, business, or trade

Schools – dormitories – see dormitories

Schools – not commercial – including auxiliary buildings other than dormitories

Schools – stadiums

Second Hand Goods Stores

Seed, Feed, and Hay Stores

Service Risks – light hazard –

Service Risks – other –

Service Stations – see Automobile Service Stations

Sewage Works

Sewing Machine Sales

Sewing Machine Service

Shoe Repair Shops

Shoe Shine Shops

Shoe Stores – retail

Shoe Stores – wholesale

Shooting Galleries – recreational buildings

Sign Erection and Repair Shops

Sign Painting Shops – not spray

Sign Painting Shops – spray

Signs – outside

Sisters Homes

Skating Rinks – buildings – ice or roller

Sorority Houses

Sporting Goods and Athletic Equipment Stores – retail

Sporting Goods and Athletic Equipment Stores – wholesale

Stables – boarding, livery, and racing

Stables – private

Stables – riding clubs

Stables – sales

Stadiums

Stands – exhibit – outside

Stationary Stores

Steel or Iron Dlrs. – no scrap

Steel or Iron Dlrs. – scrap

Store and Office Fixture and Supply Dlrs.

Store and Office Furniture, Fixture, and Supply Dlrs.

Store Buildings – multiple occupancy

Store Buildings – single occupancy – see occupancy listing

Stores

Street Banners

Supermarkets

Swimming Pools – buildings

Swimming Pools – outdoor

Tailor Shops

Taverns – no cooking

Taverns – with cooking

Taxidermist Shop

Television or Radio Service Shops

Television or Radio Stations

Television or Radio Studios

Television or Radio Towers and Antennas

Tennis or Handball Courts – buildings

Theaters – motion picture

Theaters – motion picture – drive-in

Theaters – motion picture – drive-in speakers and screens

Theaters – motion picture or television studios

Theaters – no scenery

Theaters – with scenery

Ticket Agencies – offices

Tie, Post, or Pole Yards

Tire Dlrs. – no recapping

Tire Dlrs. – with recapping

Tire Recapping or Retreading Shops

Tobacco Rehandling or Warehousing Buildings

Tobacco Sales Warehouses

Tobacco Stores – retail

Tobacco Stores – wholesale

Tool Dlrs. – retail

Tool Dlrs. – wholesale

Toy Stores

Undertaking Parlors

United Service Organizations

Vacant Buildings

Variety Stores

Vending Machines

Venetian Blind Mfr.

Veterinary Hospitals

Wallpaper or Paint Stores

Warehouses – cold storage

Warehouses – furniture

Warehouses – general merchandise

Warehouses – private – see individual listings

Warehouses – tobacco sales

Warehouses – tobacco storage

Water Softening Equipment Rental

Water Works

Wholesale Stores –

Wine Distributors – barrels

Women Clothing Stores – 14 years or older

Women Specialty Shops

Wool Merchants

X-Ray Laboratories