Accident
An accident is a sudden, unexpected event or occurrence that causes bodily injury or property damage. The event may be at-fault, not-at-fault, reported or unreported. An example of a not-at-fault accident could be where your parked vehicle is struck by another vehicle.

Back to Top

ACH (Automated Clearing House)
An ACH transaction is an electronic fund transfer, routed through the Federal Reserve Bank from a checking or savings account.

Back to Top

Actual Cash Value (ACV)
A vehicle's actual cash value, also called the market value, is essentially the price someone would pay to purchase that exact vehicle today. It's determined by evaluating a number of factors, including the vehicle's age and condition, as well as any prior damage, improvements, or special equipment.

Back to Top

Additional Insured
A person or organization that enjoys the benefits of being insured under an insurance policy, in addition to the owner of the insurance policy. Typically, a larger and more powerful business will require that smaller entities (desiring to do business with them) have the larger business named as an additional insured.

Example:  Shipper will require that they be listed as an additional insured on a motor carriers policy.

Back to Top

Anti-Theft Device
A device, either active or passive, that attempts to prevent vehicle theft. Active anti-theft devices can track and recover a vehicle and automatically contact a response center to begin the vehicle recovery process. Passive anti-theft devices attempt to prevent theft by using sophisticated electronic car alarms, simple steering wheel locks, etc.

Back to Top

Authority
Is a document issued by the jurisdiction granting authority (state, federal, or both) to operate as a "for hire" motor carrier transporting or arranging for the transport of people or property.

Back to Top

Auto Liability
See primary auto liability.

Back to Top

Bill of Landing
A legal document (contract) between the shipper of a commodity and the motor carrier delivering the commodity. The bill of lading details the type, quantity and destination of the commodity being carried and also serves as a receipt of shipment when the delivery is complete. Bills of lading must accompany shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver. Bills of lading may be made to cover the whole trip, or separate bills of lading can be prepared for each carrier.

Back to Top

BOC3
The BOC3 form is a list of registered process agents for each state, who, in the event of a legal action being presented against the motor carrier by an individual or legal entity from outside the carriers base state, would accept the papers being served on the carriers behalf and would then forward them to the carrier being served. A current BOC3 form must be on file with the Federal Motor Carrier Safety Administration in order to secure operating authority and to maintain active operating status.

Back to Top

Bobtail Coverage
See non-trucking liability insurance.

Also called "deadhead coverage." Although bobtail or deadhead coverage is often used interchangeably with non-trucking liability coverage, technically they are not the same thing. Bobtail insurance protects a tractor when it's operated without a trailer, whether or not it's under dispatch, while non-trucking liability coverage only covers a vehicle when it's driven for personal, nonbusiness use.

Back to Top

Bodily Injury Liability Coverage (BI)
Bodily injury liability is one part of a liability insurance coverage. If you are responsible for causing an accident, bodily injury liability coverage pays for injuries/death to people involved in the accident. Bodily injury liability coverage also pays for legal defense costs if you are sued.

Learn more about bodily injury liability insurance.

Back to Top

Bond
See Surety Bond

Back to Top

Broad Form Collision
Broad form collision is a type of collision coverage that waives your deductible for accidents that are caused by the other driver.  Broad form collision is only available in the state of Michigan.

Back to Top

Cargo Insurance
See motor truck cargo insurance.

Back to Top

Collision Coverage
When your insured vehicle overturns or collides with another object, collision coverage pays for the damage to your vehicle.

Learn more about collision insurance.

Back to Top

Combined Single Limit (CSL)
CSL is a single number that describes the predetermined limit for the combined total of the bodily injury liability coverage and property damage liability coverage per occurrence or accident.

Example: A CSL of $1 million pays up to a combined total of $1 million for both bodily injury liability coverage and property damage liability coverage for any single accident.

Back to Top

Commercial Driver's License (CDL)
A CDL is a special license needed by operators of tractors, vehicles over 26,000 GVW, or vehicles carrying more than seven passengers.

Back to Top

Commercial General Liability
An insurance policy that pays for bodily injury or property damage you cause as a result of business activities not directly related to operating your truck.

Back to Top

Commercial Vehicle
A commercial vehicle is any vehicle used for business purposes. Also called commercial auto, corporate car, corporate vehicle, business auto, business car or business vehicle.

Back to Top

Comprehensive Coverage
If your insured vehicle is damaged due to an event other than a collision, comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism.

Learn more about comprehensive insurance.

Back to Top

Comprehensive Coverage with Full Glass Protection
If you need to replace a window or windshield due to a non-collision incident, comprehensive coverage with full glass protection pays to replace it and waives the standard deductible, which you would usually have to pay out of pocket. This coverage is not available in all states.

Back to Top

Common Carrier
This is a company that provides for-hire truck transportation to the general public.

Back to Top

Constructive Total Loss
An insurance claim which is settled for the amount stated on the policy on the basis that the cost to repair or recover the damaged vehicle would exceed the stated amount of the vehicle.

Learn more by reading the data sheet titled "Lessons From Losses."

Back to Top

Contingent Auto Liability
See non-trucking liability.

Back to Top

Continuously Insured
Being continuously insured means your insurance coverage was in effect at all times, without a break or lapse in coverage for any reason.

Back to Top

Contract Carrier
This is a company that provides for-hire truck transportation to specific, individual shipper base upon private contracts between the carrier and each shipper, stipulating the services offered and the prices charges to each.

Back to Top

Corporation
A corporation is created to function as a separate legal and tax entity, independent of the people who own and manage it. It can enter agreements, incur debts and be taxed apart from its owners. A corporation is required to file articles of incorporation with its home state, create corporate by-laws, issue stock certificates and comply with a number of corporate formalities.

Back to Top

Coverage
Coverage is the word used to describe protection for an insured as provided by an insurance policy. A particular coverage may refer to a specific component of insurance that provides protection under a given set of circumstances.

Back to Top

Custom Harvesters
People who travel from home, working a few weeks at a time at various locations harvesting seasonal crops, are custom harvesters. They sometimes also are called agricultural workers or migrant workers.

Back to Top