The Importance of Regular Policy Reviews | Joe Morten & Son

Written by Joe Morten & Son, Inc. | May 19, 2022 2:02:39 PM

Did you know that insufficient equipment values of the tractors and trailers listed on your insurance policy can have an impact in the event a claim is filed?

For example, imagine you own a trailer today that was purchased three years ago for $40,000. Your insurance policy may indicate this trailer is insured for a stated limit of $40,000.

If that trailer is totaled in an accident tomorrow, your insurance policy will pay only $40,000 for the damaged trailer. But it might cost $75,000 to purchase a replacement.

Cargo values have also increased significantly due to the rapid rise in inflation impacting the US economy. Like your equipment, if the cargo you have isn’t adequately insured, you could pay the shortage out of your pocket!

WHAT CAN YOU DO?

Now more than ever, it is important to review your policies regularly to make sure that your equipment and the cargo you haul are insured to their current value.

At Joe Morten & Son, we invite our insured motor carriers to contact our agents or customer service representatives to discuss their equipment values and the value of the cargo they haul. This can be done at any time during the policy period, not just at renewal time.

Taking this step now can prevent a difficult situation from becoming worse in the future.

This material is intended to be a broad overview of the subject matter and is provided for informational purposes only. Joe Morten & Son, Inc. does not provide legal advice to its insureds or other parties, nor does it advise insureds or other parties on employment-related issues, therefore the subject matter is not intended to serve as legal or employment advice for any issue(s) that may arise in the operations of its insureds or other parties. Legal advice should always be sought from legal counsel. Joe Morten & Son, Inc. shall have neither liability nor responsibility to any person or entity with respect to any loss, action, or inaction alleged to be caused directly or indirectly as a result of the information contained herein. Reprinted with permission from Great West Casualty Company.

View full post