Alaska Truck Rental Insurance Policy Information
Alaska Truck Rental Insurance. Truck rental operations may offer both short and long-term rental and leasing of larger trucks, recreational vehicles, semi-tractor, semi-trailer, or other types and sizes of trailers.
Some offer vehicles or trailers, packing materials, dollies and other lifting devices for customers to transport their own personal property.
Many rental companies have vehicle refueling and repair on premises, while others will contract these functions to others. Services that may be offered include delivery of the rented vehicle to a customer or the pickup and transport of the customer to the rental facility.
Some rental agencies sell the vehicles that have reached a set mileage or usage to the general public while others sell to used truck dealers or auctions.
Although trucks rented out for moving purposes are the most well-known example of services truck rental companies provide, rental trucks may be used to transport a variety of goods to those people who only require temporary access to such vehicles.
As such, truck rental services are engaged in a vital branch of commerce, and have the potential to be extremely successful. With the fact that auto collisions are not uncommon alone in mind, it is, however, also clear that truck rental companies take on extensive financial risks.
What role might a comprehensive insurance plan play in protecting these companies from losses associated with circumstances beyond their control, and what types of Alaska truck rental insurance coverage are needed? Keep reading to find out more.
Alaska truck rental insurance protects your short and/or long-term rental and leasing operation from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Why Do AK Truck Rental Operations Need Insurance?
Just like any other business, truck rental companies face a number of risks. While smaller mishaps lead to no more than a manageable and temporary financial inconvenience, some perils are extensive enough in nature that they could threaten the company's very future.
The first hazards that come to mind are those in which a truck rental company's vehicles are damaged or lost, whether to an accident in which the driver was at fault, an accident in which the improper maintenance of the truck (allegedly) represented a contributing factor, or even theft and vandalism.
In addition, however, truck rental companies also have to consider the same risks that will be familiar to almost any business owner. Your commercial office space may suffer extensive damage in an act of nature, and your fleet may suffer heavy losses at the same time.
Fires, theft, and vandalism are further examples of threats to your commercial property. An employee may be injured over the course of their professional activities, or your company's activities could inadvertently cause damage to property that belongs to another commercial venture or private individual, after which lawsuits may follow.
Simply said, AK truck renting operations may be confronted by ruinous circumstances at virtually any time, even if they do everything in their power to run a smooth and safe operation. In investing in the best possible Alaska truck rental insurance, you don't have to worry — because you know that you are protected.
What Type Of Insurance Do Alaska Truck Rental Businesses Need?
The precise types of Alaska truck rental insurance coverage needed depend on their individual circumstances. Factors like the location of your business, the types of vehicles you own as well as the size of your fleet, and your number of employees all have an impact on your insurance needs.
A skilled commercial insurance broker will be able to offer advice pertaining to your unique business. Here, meanwhile, is a look at essential forms of coverage AK truck rental companies should have on their radar:
- Fleet Insurance - Regardless of the size of your fleet, this set of policies can cover all your trucks at once. Whether trucks suffer damage in acts of nature, are lost to theft, or are involved in a collision, the repair or replacement costs are covered by this category of insurance designed especially with businesses like yours in mind.
- Commercial Property - This type of Alaska truck rental insurance will protect your business from catastrophic financial consequences if your premises face damage or destruction due to unforeseen circumstances such as theft, fire, acts of nature, and vandalism. Both your physical building and its contents are covered, and outdoor property can be protected as well.
- Commercial General Liability - Imagine that a customer trips on an improperly maintained portion of your driveway, or that an employee causes accidental damage to property belonging to someone else. These types of mishaps can happen in any company, and when they do, costly litigation may follow. General liability coverage helps you deal with the financial fallout by covering your legal costs.
- Workers Compensation - This type of insurance is legally mandated for companies with employees. If an employee were to sustain a work-related injury, their medical expenses are covered. In the event that the injury renders them unable to work for a time, workers' comp pays for their lost income too.
Because these types of insurance are merely examples of the coverage that may be required, your next step should lie in talking your specific circumstances and risk profile over with a commercial insurance broker, who can help you craft the Alaska truck rental insurance plan that will best protect your business.
AK Truck Rental's Risks & Exposures
Premises liability exposure is high due to the number of visitors. Customer waiting areas should be provided and customers must not be permitted in the garage area. Floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring.
Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
Employees who transport customers must be screened and trained to interact appropriately. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises are open after dark, there should be adequate lighting and appropriate security for the area.
There should be a disaster plan in place for unexpected emergencies. Vehicles in open lots can pose an attractive nuisance. Chains and fences should be in place to prevent entrance after hours.
Personal injury exposures include allegations of discrimination, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.
Product liability exposures are high if used vehicles are sold directly to the general public. Check-off procedures should be in place.
Environmental impairment exposures can be significant due to the storage of fuel in underground fuel tanks and the disposal of used oils, solvents and other hazardous wastes from service and repair operations. All tanks and pipes, underground or above, must meet state or federal regulation and be routinely tested for leakage.
Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing vehicles.
Contracts should be in place to dispose of all environmentally dangerous chemicals. If there are underground storage tanks, a UST policy will be needed.
Workers compensation exposure in the office is minimal. Employees performing maintenance or repair work should be properly trained. Employees working in the garage can incur injuries from slips, falls, back sprains, strains and hernias, hearing impairment from noise, and foreign objects in the eye. Eye and ear protection should be provided.
Welders may suffer burns. Repair areas should be properly ventilated.
Hoists need to be regularly inspected to prevent vehicles from falling off. The proper use of lifting techniques and of dollies should be encouraged. Hoists need to be regularly inspected to prevent vehicles from falling off.
Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. Pickup and delivery of customers or vehicles can result in injury due to vehicular accidents.
Property exposure comes from office and garage operations. Electrical equipment and wiring should meet current codes and be well maintained. Flammables such as fuels, paints, lubricants, oils, degreasers, and solvents used in the refueling and repair operations must be properly labeled, separated, and stored away from combustibles.
Spray painting should be done in spray booths with good ventilation, UL-approved wiring and fixtures, and adequate controls.
Any welding needs to be evaluated for proper handling of the tanks and gases. It should be done away from the other operations with either a separate room or flash/welding curtains. Smoking should be prohibited.
Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire.
Vehicles are target items for thieves. Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures are high as replacement facilities may not be readily available.
Inland marine exposure comes from accounts receivables if the operation offers credit, computers to monitor rentals and vehicles, signs, and valuable papers and records for customers' information, vehicle titles, and maintenance records. Backup copies of all records, including computer records, should be made and stored off premises.
Crime exposures are from employee dishonesty and theft of money and securities. Background checks, including criminal history, should be performed on all employees handling money. Truck rental operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements, and reconciling bank statements.
Physical audits should be conducted at least annually. Theft of money and securities prevention requires controls of monies kept in the cash drawers and regular bank drops.
Commercial auto exposure is high due to the ongoing use of vehicles by renters whose driving habits are unknown to the operation and who may not be familiar with driving conditions in the area where the vehicle is rented.
The rental company should keep a copy of the renters' driver's license and proof of insurance. The rental contract should identify all drivers and state that unlisted, unlicensed, or minor drivers are not permitted to operate the vehicle. It should also include a hold-harmless agreement in which renters agree to assume responsibility for the operation of the vehicle to limit the business's exposure to vicarious liability only.
If a collision damage waiver is offered, the customer's signature is needed to document whether this was purchased or declined. The customer should also be required to sign a vehicle pre-inspection form to minimize disputes when the vehicle is returned with damages.
All employee drivers should have valid licenses and their MVRs regularly checked. Vehicles must be regularly maintained with records retained. If vehicles are furnished to employees, there should be written procedures for personal and permissive use.
Vehicles stored in open lots are particularly susceptible to damage by hail, wind, flood, vandalism, and theft. Lots should be well lighted with chains, fences or gates to prevent access and transport. An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas.
Garagekeepers exposure is from damage that can occur to customers' vehicles left with the rental company while renting other vehicles. Keys to customers' vehicles should be kept in a locked box to prevent unauthorized use. Proper identification should be required to prevent handing a customer's car to the wrong owner.
Alaska Truck Rental Insurance - The Bottom Line
To learn more about the exact types of Alaska truck rental insurance policies you'll need and how much coverage you should carry and associated costs, consult with a reputable agent that is experienced in commercial insurance.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Alaska also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Dealers
- Auto Detailing & Mobile Car Wash
- Auto Dismantlers
- Auto Garage
- Auto Glass Repair Shops
- Auto Paint Shops
- Auto Service Repair
- Auto Supply Parts Store
- Car Rental
- Car Wash
- Gas Station
- Motorcycle Dealers
- Parking Lot
- RV Dealers
- Snowmobile Dealers
- Truck Rental
- Used Car Dealer
There is a Auto Service Risks Program is an enhancement of the Commercial Package Policy that is available to certain Auto Service Operations.
Automobile repair shops and garages offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station.
Gasoline stations are normally limited to the dispensing of gasoline, kerosene, diesel or fuel oil with incidental sales of auto accessories and pre-packaged snack food items. Larger gasoline stations may offer other services, such as auto repair, retail sales of food or auto parts, snack bar or restaurant, propane tank exchange, towing, or baths and overnight lodging facilities for truckers.
Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area. Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires.
The three basic types of risks that are contemplated by the Auto Service Risks Program include:
- Repair Shops - operations primarily engaged in auto repair. This includes shops that do body, fender, radiator, ignition service and paint work.
- Service Stations- operations primarily engaged in servicing autos. The sale and installation of auto accessories are a part of this category as long as major engine or bodywork is not performed. Car wash facilities are eligible.
- Storage garages and other parking places.
The following classifications are specifically listed as eligible: Automobile:
- Quick Lubrication Services
- Repair or Service Shops
- Repair Shops–Self Service
- Car Washes–self-service and full-service
- Convenience Food/Gasoline Stores–self-service, full-service and combined
- Gasoline Stations–self-service, full-service and combined
- Parking–public-open air and not open air
Automobile, motor home, mobile home, trailer, and motorcycle dealers are NOT eligible for this program.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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Also find Alaska insurance agents & brokers and learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.