Question
I have tried on several occasions to get info from D.A.C. and have not been sucessfull in my attempts.
I have wrote,called and e-mailed them with no sucess. They don't call you back and there e-mail returned said try calling agian when not busy. There mess machine is a terminal dead end, should I send a legal document to get them to answer?
Also If you are not leased to a company but olny haul there frieght as a independent contractor can they force you to carry more insurance then the state requires.
Also there insurance is revenue based so the more money I make the more insurance I pay.
right know I pay 6% of revenue which is about $400 to $600 per month on a $5,000,000 umberlla policy is this good or bad?
Answer
Kaiser,
With regards to DAC, are you attempting to get a copy of your employment history and driving record? Try calling 800-331-9175 and ask for customer service. If you get hit another deadend, I could try to get the information as we are a member of DAC and utilize their services. I do not know what the charge would be, but could investigate it for you.
"Forced to carry more insurance"? Not sure what you mean by forced. If you sign a contract, then you've agreed to the parameters of the agreement. If it calls for more insurance than setforth by the Federal, it's not forced in my opinion. Actually, the federal has set "minimum guidelines and requirement". There is no law saying you can provide more protection.
You've not given me the details of your operation, but if the $5 mil is for unlimited radius hauling hazardous, then it's a good deal. But if it's 50 mile radius and non-hazardous, perhaps we should discuss this further.
If I can be of further assistance, please let me know. I will be in Louisville for the Mid America Truck Show and will back in my office on Monday, March 29th.
Connie
Answer
Connie: Sorry I was not more detailed.
Theres no hazmat involved.
The policy covers olny intrastate hauling but has been transfered from state to state without decrease or increase. Like I said it is revenue based at 6% of gross.
When I said forced I meant the amount not actual insurance. They get a group rate) they said I can go elsewere but I need the same coverage.
My question is not value but need. they have drivers that deliver to private homes and companys who are contractors. This added risk is the reason for the high coverage amount.
On the otherhand my driver olny makes his deliverys to there docks and does no home delivery because that is what is in the contract.
This is new for them they used to outsource this service and did'nt have a dedicated truck to there stores.(shuttle truck)
I think there just lazy to write a new updated version of the contract for 1 truck
since there contract covers olny this market and is not company wide.
looking over the contract there is no seperation between what the other contractors and my operation do it just says the contractor will carry a minimum amount as required blah blah.($5,000,000)
Should I go to the underwriter and have them tell the client that this amount is not needed by my operation.
Should I get a lawyer to put the screws on them writing a new contract.
I don't want to **** anyone off it's a good contract except for the insurance part,they just keep telling me to participate in there group plan this is the way it is and if it's to much I'm free to go elsewhere provided I maintain $5,000,000 in insurance this is where the forced comes in.
Can they force me to carry more insurance then is needed by my operation. I've given detailed discriptions of my operation to several insurance carriers and they think it is double what I need to be safely covered,but at my current coverage they say I'm getting a good deal.
They have had 2 deaths on there docks but those involved company employees not contractors.Could this be making them stubborn?.
Thanks for your previous reply
[This message has been edited by kaiser (edited 03-22-99).]
Answer
Kaiser,
"revenue based at 6% of gross"
Actually, depending on the annual gross this may be a very competitive premium especially for $5 million.
"When I said forced I meant the amount not actual insurance. They get a group rate)
they said I can go elsewere but I need the same coverage."
They can contractually require you to meet their insurance requirements. If you've signed the contract, it appears you've agreed to the terms.
"I think there just lazy to write a new updated version of the contract for 1 truck
since there contract covers olny this market and is not company wide."
To write a contract specifically for one truck may be very costly and they may not be willing to do that. Opie could probably answer that issue for you. But, as a company, I don't know if I'd want to have people operating under different agreements.
"Should I go to the underwriter and have them tell the client that this amount is not
needed by my operation."
I don't think that's your place to do.
"Should I get a lawyer to put the screws on them writing a new contract."
This would probably not be good for your relationship with this company. And I don't know what grounds you would have. Again, perhaps Opie could advise.
"I don't want to **** anyone off it's a good contract except for the insurance part,they
just keep telling me to participate in there group plan this is the way it is and if it's to much I'm free to go elsewhere provided I maintain $5,000,000 in insurance this is
where the forced comes in."
I don't see any forcing here. You're free to get your insurance anywhere you want providing you meet their contract specs. The choice is yours.
"Can they force me to carry more insurance then is needed by my operation. I've given
detailed discriptions of my operation to several insurance carriers and they think it is double what I need to be safely covered,but at my current coverage they say I'm getting a good deal."
Kaiser, first how do you or any other insurance carrier know that $5 million is more than you'll need? How do you know what could possibly happen? How do you know someone won't sue you for $10 million? I personally recommend you purchase as much insurance protection as you can possibly afford. If it's $1 million or $10 million.
No one can say how much is enough. And stay away from anyone who does. I also suggest you abide by your contract. If you are dissatisfied, perhaps consider another company.
"They have had 2 deaths on there docks but those involved company employees not
contractors.Could this be making them stubborn?."
Sounds to me like they are trying to protect themselves and their company. I know if I had 2 deaths, I'd be pumping the coverage as much as possible.
Best of Luck,
Connie
Answer
Thanks Connie for the advise
Sure I hear you on the "can never have to much insurance"
I notified them yesterday I will not sign in sept. if there is not a new seperate contract for my operation.
I guess you can change provisions of a contract without a whole new contract but I'll just wait till sept.
[This message has been edited by kaiser (edited 03-24-99).]