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Tanker Insurance – What You Need To Know

Tanker trucks transport toxic and nontoxic goods from one place to another. Operators of these trucks face many risks every time they get behind the wheel. These risks include collisions, spills, breakdowns, leaks, and theft. To minimize the damages caused by these risks, we recommend tanker insurance. This type of transportation insurance is specifically designed to cover the replacement cost of the cargo. Extensions or additional coverages are also recommended to protect owner-operators of tanker trucks from financial losses associated with cleanups, property damage, bodily insurance, and lawsuits. Learn more about tanker insurance by reading the article below.

 

Insurance Coverage Recommendations For Tanker Trucks

Operators of tanker trucks become so familiar with their jobs that they do not give much thought to the risks involved in transporting goods on Canada’s highways and roadways. Many of these operators fill their trucks at load-outs and transport it to a facility where it is then unloaded. The number of miles traveled can vary, depending on the distance between the two facilities. It is only common sense that the risks are higher for operators traveling longer distances. With that said, all tanker truck operators share the same risk exposures.

Insurance recommendations for owner-operators of tanker trucks include:

  • Commercial truck insurance
  • Liability insurance
  • Cargo theft insurance
  • Property insurance

It is recommended to begin with a basic tanker insurance policy and adding extensions until all of your risk exposures are covered.

 

Tanker Truck Risk Exposures

Tanker truck operators are required to meet specific safety regulations to operate legally in Canada. These drivers undergo extensive training courses before they are permitted to operate a tanker truck on the open highway. Regular safety courses are also required to ensure the operators are up-to-date on the standards and regulations of the transportation sector.

Tanker trucks are exposed to a broad range of risks from the time they enter the highway and exit it. These risk exposures include:

  • Collisions
  • Spills
  • Leaks
  • Breakdowns
  • Theft

Covering the cost of damage caused by the risk exposures can be rather expensive. 

 

Canadian Environmental Protection Act, 1999

All tanker truck operators are required to heed to the Canadian Environmental Protection Act, 1999, which governs a broad range of environmental matters, including water and air pollution, toxic substances, and waste management. 

While tanker trucks are designed to withstand the impact of shock caused by high winds, potholes, stopping/starting, and normal bumps and bangs, there is always the risk of a leak. When the cargo is classified as a toxic substance, a leak can be devastating. The leak must be reported to the owner-operator and the Canadian Environmental Protection Agency. The cleanup for even a small leak can be rather expensive. Special equipment is required to clean up to toxic substance. The cost of hiring the companies that own the specialized equipment is astronomical. And, the larger the spill, the longer it will take to clean up the mess. Who is responsible for these expenses? No other than the owner-operator of the tanker truck.

Even something as simple as a fender-bender or the release of a pop-off valve can lead to a devastating financial loss. We recommend tanker insurance with extensions to minimize these losses. This insurance can protect you from paying out-of-pocket for the cleanup and to replace the goods.

 

Tanker Insurance – How It Can Help?

The daily grind of the road can take its toll on commercial trucks and passenger vehicles. Both of these vehicles are carrying precious cargo that cannot be replaced. And, an accident can occur without a moment’s notice. The protection all oil, milk, water, chemical, syrup, grain, and gravel owner-operator trucks need is tanker insurance with an extension of a commercial truck, cargo theft, liability, and property coverages. 

Tanker insurance kicks in when a collision leads to spillage of toxic or nontoxic substances. The insurance will cover the cleanup and replacement cost of the goods. If you are involved in a collision and deemed liable, you will be responsible for these damages and any other claims filed by those involved in the incident. If you are not covered under a tanker insurance policy at the time of the collision, you will be required to cover the costs with cash on hand. And, if you do not have enough cash to cover these expenses, you may be forced to take out a loan or sell your business to compensate for the losses.

Volatile Fire Damage – Cargo Insurance

Toxic and nontoxic substances stored in tanker trucks are known for building pressure. While manufacturers of tanker trucks are utilizing specialized features, such as the pop-off valve, to reduce the risk of explosions and fires due to high levels of pressure, there are no guarantees. During the load-out, tanker truck operators must follow a strict protocol, which involves opening one or multiple pressure valves. When the operator fails to release one of the valves, the pressure will buildup inside the tank. If the mishap is not detected early on, the pressure will cause a fire or explosion.

To protect your company and employees from the damages caused by potential explosions and fires caused by high-pressurized cargo, you will need to obtain and carry cargo insurance. This policy will cover the losses and damages caused by explosions and fires. 

Commercial Truck Insurance

All owner-operators of tanker trucks operating in Canada must obtain and carry commercial truck insurance. This policy covers the damage and losses associated with collisions. Many passenger vehicle motorists are not aware of the difficulties tanker truck drivers are required to endure daily. So, they do not think when pulling out in front of a tanker truck. Unlike passenger vehicles, tanker trucks do not immediately slow down when the brakes are applied. 

Studies reveal that it can take an 80,000-pound tractor-trailer or semi-truck traveling at 65 miles per hour about 525 feet to come to a complete stop. Studies also show that it would take a passenger vehicle weighing between 3,000 and 4,000 pounds, traveling at 65 miles per hour about 316 feet to come to a complete stop. 

If the distance between a tanker truck and passenger pulling out into traffic is not far enough, a collision will occur. This is why it is crucial for owner-operators of tanker trucks to carry commercial truck insurance. This type of insurance can help pay to repair all damaged vehicles involved in a single collision. It will also cover out-of-court settlements and litigation costs, as well as lawsuit costs and medical expenses.

Tanker Truck Accident Claims

Our underwriting team will help you build a customized tanker insurance policy that will meet your risk exposures. Our job is not done until you know the risk exposures of transporting toxic and nontoxic substances, the accident claim process, and how to minimize your risks. Our goal is to ensure you are fully protected and prepared to handle every potential situation that you may encounter during transport. 

Our claim department is open 24 hours a day, seven days a week. So, you can file your accident claim without delay. We offer the resources needed to ensure you are back on the road as soon as possible. We are here to answer your questions about tanker truck insurance and start working on a policy that will match all of your risk exposures.

 

 

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