Trucking Companies for Sale? – 14 Business Buy or Sell Tips!
No matter the level of business or industry experience, it is always important to have a working checklist, specific to your industry.
We have collected 14 Trucking Tips, before you find trucking companies for sale,
or if you decide to sell your own trucking company.
These business tips will help secure your current or future investment.
So, without further ado, lets begin!
Trucking Companies & General Business Operations
When mom told you to clean your room, it might be the best suggestion you got growing up.
This is because, having that standard of tidiness can
apply into your work performance, and added for future success.
For example, keeping aisles and floors cleaned on a regular basis,
like mom would like, can help reduce slips and falls.
This is music to the ears of business owners.
This is because spillage of oils and chemicals or other materials can happen.
So, the normal maintenance of the floors for
spillage can help reduce any employee or pubic falls.
2. Safety Equipment Usage
Guides, we all need them. We all like using them for the most part.
They can be instructions on how to use safety equipment pieces.
For example, to reduce injury, all employees can be required to use appropriate safety equipment.
This equipment would be used while performing hazardous operation.
This safety equipment can include pieces such as eye goggles,
up to date guards and Deadman switches.
This would be for all the power machinery.
In addition, the usage of the hoists, cables and other material
for handling equipment purposes should be mandatory.
This would ensure an employee is not just using equipment prior to reading the safety measures.
Mandatory Business Measures
So, instead of guessing, an employee would have prior knowledge of the
piece of equipment they are about to use, no matter how big or small the equipment is.
For example, safety goggles. As small and simple as that might sound,
the proper placement of this safety device on your face is
paramount in the safety of the user’s overall health.
If the goggles for example are not put over your eyes correctly,
then the penetration of fumes or chemicals is optional.
This defeats the whole purpose of having protective gear.
So, make sure to read and review all the safety diagrams, make sure to ask a fellow worker
if you have any questions, because guessing about safety measures
can be a safety hazard to both you and your company.
Therefore, the argument of mandatory is such a prevailing thought.
It transfers the risk factor from the employer to the employee. It is because responsibility is
accepted to the employee after an understanding is acknowledged from reviewing.
3. Material Review
This area is recommended for several reasons. This review is of all liquids or other materials.
These materials or liquids are to be conducted to determine their combustion-ability or flammability level.
All personnel using such materials should be property trained in the potential dangers.
Also, they should be properly trained on the handling of such materials.
This training session would entail an added measure of protection.
Also, an acknowledgement of material review can be incorporated into the
paperwork of your employee if you are the employer.
This review can also be a part of the new hire training process. Also, it can be incorporated
into future meetings with safety topics, and measures to improve safety concerns.
4. First Aid Training
All employees should be instructed in appropriate first aid procedures.
These first aid techniques should also be incorporated with
the equipment that is used regularly for them.
The equipment itself should also be checked and made sure
to be ready for functionality and readiness.
This can ensure there is no time lapse in the event of a crisis. The last thing someone in the
emergency field wants during an act of an emergency,
is having any faulty preparation plans. This means safety equipment as well.
The main beef of any trucker’s insurance program will center around
the coverage provided for the various types of trucks.
Some of these trucks are:
- truck tractors,
- or other equipment used to transport contracted commodities.
Over the years, ISO has developed basic forms to provide equipment overage for such vehicle types.
Each form is designed to provide insurance protection for a specific type of coverage situation.
The first type is called the, business auto coverage form.
6. Business Coverage Form
This form is used to insure trucks, private passenger autos, or other
type vehicles that are used to transport an insured’s own goods it owns.
This depends on the coverage symbols selected to determine the type of coverage policy.
The basic auto policy can cover own, hired, borrowed and non-owner autos.
The second type has this form, trucker’s coverage form.
7. Truckers Insurance Form
This type of form is used by companies that are in the business of
transporting goods, materials or commodities for others.
It is the main type of policy used for most contract and common carriers.
The third type of coverage from is called the motor carrier coverage form.
This form is a recent developed hybrid policy. It is designed to insure
private carriers who also compete with common and contract carriers on a part time basis.
Up until the introduction of this form, accounts that were engaged in a for hire basis were accounted for.
8. Trucking Activities
Trucking activities, on a part time basis must be purchased on a second trucker’s policy,
or endorsed on their business auto policy to provide coverage for such activities.
All three of these forms, can be used to provide the basic liability and
physical damage protection for the ownership and use of covered vehicles.
The difference between the forms involves the symbols they use,
some are the specialized coverage they offer.
Coverage Scope of Business
Some of the others are there to list the scope of protection.
They would provide protection under, who is an insured or who is part of the contract.
Each form has been carefully designed to address the needs of the specific type for each trucker.
That is how the from was intended and built for.
However, today, most trucking accounts that engage in hauling for hire will be written on
either the truckers coverage form or to a lesser extent, the motor carrier coverage form.
The main advantage of these policies is that they conveniently provide several coverage
provisions or option related to the trucking industry that are not
usually available in standard business auto policy.
9. Practical Considerations
There are considerations that should be looked at.
Below, you will find a summary of those considerations.
Remember, that many insurance companies do not use ISO based policies.
That is to provide coverage for truckers.
Most policies will however, contain the same policy elements as discussed below.
So, you will see a lot of these definitions and terms overlap from your actual policy.
10. Non-Owned Trailer Protection
One unique coverage that you will find on for hire truck insurance policies
involves the protection for non-owner trailers.
This coverage is while in the insured’s possession, or for the insured’s trailer
while in the possession of someone other than the insured itself.
This coverage is also known in the insurance language as trailer interchange insurance.
This coverage addresses the exposures that are created by the exchanging of trailers.
This exchange is between trucking risk under various interchange agreements.
Typically, you will see these agreements for users of non-owned trailers,
that are legally liable for physical damage to such trailers.
Insurance companies will usually provide this coverage by
incorporating it into their trucker’s policies.
11. Insurance Form Coverage Stance
It is important to keep this information in mind.
This is because trailer interchange insurance is based upon a trucker’s legal liability.
Most forms of this coverage are issued as third-party liability protection.
This is predicated upon the existence of a written interchange agreement.
Nonetheless, some companies will write interchange
coverage as a first party physical damage coverage.
They can do this by adding a specified amount for and in-described,
non-owner trailers to the vehicle schedule.
12. Additional Insurance Coverage
This will then provide primary physical damage coverage on any non-owned trailers.
This is without any requirement that a written agreement should be in place.
It is also important to note, that this approached is used when an insurance agent reviews
the physical damage policy portion for a possible subrogation clause.
It also involves the elimination to comply with any contractual requirements.
13. Trucking Insurance Risks
Another area of concern that will be reviewed is, the trucking risks involved
in the relationship between larger trucking companies.
This relationship between the larger and the smaller trucking companies
may lease vehicles, from owner or operators as an example.
This situation is not uncommon. This is because the shipper demands
the trucking services can be often unpredictable.
This means it is difficult for transit companies to maintain
an adequate number of vehicles, at any given time.
14. Supply and Demand
To meet shippers’ needs, trucking companies will often enter into vehicle lease agreements.
They will enter these agreements with other truckers. There are provisions that will be contained in these agreements.
They will specify who will be liable for loss or damage that has resulted from the operation of such leased vehicles.
This is typically done when the lessee is leasing the vehicle on a long-term basis.
The lessee will retain responsibility for damages and will schedule the lessor’s vehicle onto their trucker’s policy.
On a specified trucker’s policy, the premium would be collected based on the hired auto rate.
This is to include how many drivers are listed on the policy section.
So, therefore, it depends on a for hire basis or not. From a reporting form perspective,
the premium would be assessed by including the mileage
of the leased vehicle in the monthly report of miles traveled.
You should note, that under ISO’s format, if the leased, hired, rented or borrowed auto
includes a driver, an additional endorsement page, must be attached.
This is to provide primary physical damage coverage for such autos.
This article covered some of the most popular items for reducing risk exposures in a business operation.
This operation was catered and geared more towards the Commercial or Trucking industry, however
it can be applied to many other general businesses in some regard.
This is because, understanding that a workflow checklist is vital to the security of your business is the first step.
Knowing that you can put one in place, or at least have the knowledge to do so, is business empowerment!
In the buying and selling arena of Trucking Companies,
it is important to have a solid framework in place, before making your next move!