Questions you need to ask
Protection During Selection
Some transportation companies will reassure you they are "fully insured". However, this does not mean your vehicle is necessarily insured against transport damage. "Fully insured" only means the transportation company meets the minimum liability insurance requirements set forth by governmental agencies. Liability coverage protects only the welfare and interests of third parties.
Questions you need to ask
- Who will maintain primary insurance coverage for my vehicle? Often times, the primary insurance coverage falls to your personal car insurance company. You need to ensure the transportation company will provide you with primary insurance coverage. Primary coverage dictates who will maintain primary responsibility for insuring your vehicle against transport related damage?
- Are there any additional costs involved to obtain primary coverage? Often times, transportation companies will provide primary insurance only with additional premiums that will increase the rate you are quoted to transport your vehicle?
- Are there any deductibles associated with your primary coverage? Often times, transportation companies will charge you a deductible that must be met. This will increase your exposure as well as the rate you were quoted to transport your vehicle?
You should require all potential transportation companies to provide you with the following two certificates:
- Certificate of Insurance.
You need to verify the potential service provider has adequate levels of coverage and, most important, their coverages are in effect. - Operating authority number FF: 329
All transportation companies must have an active operating authority issued by the former Interstate Commerce Commission (ICC) and now maintained by the Department of Transportation (DOT).
Insurance Requirements
All Freight Forwarders, Carriers, and Brokers must have in effect, and on file with the Federal Motor Carrier Safety Administration (FMCSA), certain types and levels of insurance.There are three types of insurance coverages required:
- Automobile Liability
Bodily injury and property damage (BIPD). Federal minimum amount required is $750,000. TnT maintains a level of $1,000,000. Auto liability protects the welfare and interests of third parties only. - Cargo
Transport product damage. Federal minimum amount is $5,000 per vehicle, $10,000 per occurrence. TnT maintains a level of $250,000. Cargo insurance financially protects your vehicle while being transported. - Bond
Refers to surety bonds or trust funds that must be maintained by authorized property brokers only. Federal minimum amount required is $10,000. Freight Forwarders and Carriers are not required to carry a bond.
TnT does maintain additional coverages of:
- Garage keepers in the amount of $1,250,000. Garage keepers protects your vehicle while staged at TnT terminal locations.
- General liability in the amount of 2,000,000. General liability protects the welfare and interests of third parties only.
- Umbrella liability in the amount of $5,000,000.
Operating Authority:
A transportation company must be registered as either:- Common Carrier
- Contract Carrier
- Broker
- Freight Forwarder
Carrier authorities are identified with the prefix "MC" (motor carrier) in the docket number field. Freight Forwarder authorities are identified with the prefix "FF" (freight forwarder) in the docket number field and are listed as contract authority. An ACTIVE status for the Common, Contract, or Broker field means the freight forwarder, carrier, or broker is currently registered and has complied with applicable insurance regulations. An INACTIVE status means the operating authority has been revoked and for-hire interstate operations are ILLEGAL.
You may validate a prospective transportation companies active operating authority and insurance coverages on file with the Department of Transportation's (DOT) through their web site athttp://li-public.fmcsa.dot.gov/LIVIEW/pkg_html.prc_limain. For a complete breakdown of definitions and descriptions of how to read the carrier detail, you may go to the Federal Motor Carrier Safety Administration web site at http://li-public.fmcsa.dot.gov/LIVIEW/pkg_li_std_routines.prc_help?.
