The Basics of Cross-Border Trucking Insurance

Running a trucking operation between Canada and the United States involves careful insurance considerations because the risks and regulations vary between jurisdictions. A good place to start is with comprehensive commercial truck insurance, which typically includes the following coverages:

• Collision, comprehensive or specified perils: To cover damage to your trucks
• Primary liability: To cover property damage or bodily injury in the event of a road accident
• Excess or umbrella liability: To get higher liability limits (In the U.S., trucking companies often purchase this to meet Federal Motor Carrier Safety Administration requirements.)
• Nontrucking liability: To protect your truck when it isn’t transporting cargo
• Cargo liability: To protect your haul
• Occupational accident: To protect your drivers in the event of an accidental death or dismemberment

Of course, there are many more coverage options available, depending on your company’s unique risk profile. For instance, if you hire trucks in your fleet, you may need hired and nonowned auto coverage. And workers’ compensation insurance is mandatory.

With cross-border trucking, your insurance and risk management needs grow more complex. It helps to team up with a specialized insurance broker and carrier. They can help you craft an insurance and risk management program that meets your unique needs and complies with  legal and regulatory standards in Canada and the U.S. A cross-border policy can give you peace of mind that you have insurance and claims support in all the countries where you do business.

Risk management in long-haul trucking

The risks to cross-border trucking operations include road accidents, cargo theft, compliance issues, and injuries while loading and unloading. There are many ways to mitigate these risks.

Investing in vehicle technologies like telematics, electronic logging devices (ELDs), in-cab cameras and collision avoidance systems can seem like a large expense upfront, but the downstream benefits can be significant.

With telematics and ELDs, you can:

• Log your drivers’ hours of service
• Track your vehicles
• Monitor driving patterns, including speed and braking
• Identify the best routes for your trucks to avoid hazardous areas

The footage in-cab cameras capture can mitigate the severity of liability claims and help with your defense in litigation. You can also use the footage you captured, along with ELD data, to train your drivers and improve their overall safety and efficiency.

That brings us to the most important risk management technique for trucking operators: driver training. It is critical that your drivers understand the risks associated with distracted driving, which is responsible for thousands of vehicle accidents and fatalities every year.

Protect your people

As a fleet operator, you want to provide health care coverage to ensure your drivers heal from any injuries or illness. Beyond mandatory workers’ compensation insurance, you should evaluate group health plans.

With a group benefit plan, you can include extended health care insurance, which supplements coverage offered by your workers’ provincial health care plan. Note that these plans typically exclude coverage for work outside Canada’s boundaries.

To cover cross-border health needs, consider adding business travel health insurance to your benefits plan. This helps cover the costs of medical emergencies, hospitalizations and other health care needs that occur in the U.S. It also usually covers medical evacuations back to Canada, or repatriation in case of death. Ensure that any U.S. solutions you provide comply with the Affordable Care Act.

Support your drivers

Before sending your drivers out onto the long open road, educate them about how to access health care in the U.S., as this will expedite their access to medical services during an emergency.

It is also important to understand any preexisting physical or mental health conditions your drivers may have to ensure they have access to the right tools, services and insurance while they’re working internationally.

Finally, steer clear of employment practices lawsuits. Providing ergonomic support for drivers, ensuring work and break hours comply with motor carrier laws, and complying with fair workplace practices will help you avoid complaints. But having an EPL insurance policy is a good idea since allegations of wrongful treatment are common.

An insurance broker specializing in trucking can help you find insurance options for all your cross-border needs.

This content is for informational purposes only and not for the purpose of providing, financial, medical or legal advice. You should contact your attorney, doctor, broker or advisor to obtain advice with respect to any particular issue or problem. Read more about our limitation of liability here.