Newbie Information (Audits)

[Tony]

Something I had forgotten to mention in regards to new guy startup. Of course you know that it will be expensive and it will seem like everyone will try to reach into your pockets. You also know that you need to be prepared for your 'New Entrant' audit.

But there is one more thing you should be prepared for...

Sometimes when a new entrant insurance policy is written, the insurance company may request a risk inspection(aka insurance audit).
I have seen it happen, and it happened to me. It's not that big of a deal, but they will typically send someone out to review your records and your qualifications. He will want you to provide less than half of what is required for an FMCSA audit.

He will ask for your employment application/qualifications, review of your drug policy, truck/trailer information & maintenance. Basically he is inspecting to review their risk level. I have not seen where a new guy is grilled, but instead double checked. But I have heard of a story (from the insurance guy) where a O/O had his insurance completely canceled effective immediately. His driver(himself) had no medical card! The inspector called immediately and canceled coverage... the rest of the story was sketchy at best. But since he was a 2-truck operation, the owners other truck was stuck out in the boondocks and unable to roll. Yes, he could have proceeded uninsured and probably not been hassled by DOT... but that would be stupid to roll uninsured.

The moral of this story... Have your ducks in a row COMPLETELY! Do not cut any corners. Just because the New Entrant audit won't happen for a short period of time, doesn't mean you can start out unprepared and try to get things in order during the first few months. HAVE IT ALL DONE FIRST!

New Guys... You've been warned!

[2stick]

While your on the subject,whats the options on insurance companys, whos got the best coverage for the money? Ive been shoping last couple days and progressive witch ive had for the last 7 years just aint gona work for this car hauling,something about the mileage they dont like. Looking at a few others and just about got it done but though I would ask.

[Tony]

Originally Posted by 2stick

While your on the subject,whats the options on insurance companys, whos got the best coverage for the money? Ive been shoping last couple days and progressive witch ive had for the last 7 years just aint gona work for this car hauling,something about the mileage they dont like. Looking at a few others and just about got it done but though I would ask.

Progressive also limits cargo coverage to $100k. So for car hauling, Progressive really isn't in the right ballpark right now.

I would consider Geico. Their premiums are fair and coverage is underwritten by National Indemnity. I have had no issues with them. They are actually my first recommendation.

Even though I currently am at odds with OOIDA, their insurance group is doing fairly well when it comes to Auto Transporting. But as a suggestion, do not mention inops or wrecks. Stick with Auction-to-Dealer, Dealer-to-Dealer, and POV's. Any mention of previously damaged vehicles and they will refuse coverage.
They do not write O/O auto transporters through Lloyds, and only the freight guys have issues with Certificate Holders. They will read you disclaimer in regards to who will not accept their cargo insurance. But in this case it does not affect us. Our coverages are underwritten 'in-house' and the premiums are affordable considering the startup phase most are currently in. One of the lowest I have seen actually.

[2stick]

Thanks Tony, Ill check both out today.

[SWFLA]

I have a brother who has ZERO experience and got his insurance from the below person

not sure he is even legal but he lives in your area, give them a call and see what they can do

Cargo Company (Canal, Northland, etc.):
WESTERN WORLD
Cargo Company (Agent):
GERSTNER INSURANCE AGENCY
Cargo City/State (Agent): LOWELL ARKANSAS
Cargo Phone (Agent): 479 659 0101

[2stick]

Thanks SWFLA Ill call them today. I got a quote yesterday from a northland agent out of Sweetwater OK that really blew me away,about 3 grand under everyone else.Im going to call him back also. Thanks again..

[ozo]

If you will work up an information sheet on your company and your insurance needs, nice, neat, and professional looking, then 'google' commercial insurance companies, all of them you find with a fax number, fax them a request.
I do this every quarter or so, just to keep up with the rates, etc.
This will save you a lot of time [and them] and cover a lot of ground.

[2stick]

Thank OZO,come monday I believe it'll be done. Now the Little Rock thing to get the tags & truck lettered. Maybe with a little luck I'll be ready to load something by the end of the week.