Delivery Fleet: The Road Exposure Follows Every Sale
Different supplier classes create different fleet severity: lumber and drywall use flatbeds and boom delivery; ready-mix uses heavy mixers; landscape suppliers may use dumps and heavy trailers; electrical/plumbing distributors use vans, stake beds and larger straight trucks; equipment dealers use service trucks and heavy transport.
Underwriters typically look at driver quality, vehicle type, radius, backing controls, load securement, maintenance and jobsite delivery.
Jobsite Delivery Is Not Ordinary Route Driving
Construction sites can involve soft ground, pedestrians, cranes, tight backing, temporary roads and changing access.
Delivery procedures should address: spotters; backing; overhead hazards; loading zones; customer direction; boom/lift operation; and safe unloading.
Cargo Coverage Depends on When the Supplier Still Bears the Risk
Shipping terms and contracts affect when ownership or responsibility transfers.
A supplier should know its maximum: value on one truck; value with one common carrier; value at temporary storage; fragile load; high-theft load; and long-lead custom equipment shipment.
Outdoor Yard Inventory Needs Catastrophe Planning
Lumber, pipe, roofing, hardscape, tractors and other equipment may be stored outside.
California risk can include wildfire, wind, flood, theft and vehicle impact. The property policy should clearly contemplate outdoor stock and the maximum seasonal concentration.
Forklifts Create Both Property and Liability Losses
Forklifts can damage racks, inventory, trucks and people.
Strong controls include operator training, pedestrian segregation, inspection, speed rules, charging/fueling procedures and rack-protection systems.
Warehouse Storage Configuration Affects Fire Severity
Commodity type, storage height, rack configuration and sprinkler design need to stay aligned as inventory changes.
A warehouse that was adequately protected for one product mix may not be adequately protected after the business changes what and how it stores.
Business Interruption Begins With Customer Retention
After a major loss, the supplier may be able to rebuild but still lose customers if competitors fill orders during the downtime.
Business-income planning should identify: alternate warehouse space; backup distribution points; critical inventory; alternate suppliers; emergency freight; and realistic restoration time.
Frequently asked questions
Does commercial auto cover the materials on the truck?
The vehicle and cargo are separate exposures. Cargo/inland marine should be evaluated when the supplier retains responsibility for the material.
Is outdoor inventory automatically included in a property policy?
Not necessarily. Location, peril, limit and valuation terms should be checked.
Do forklifts need auto insurance?
Forklifts are generally handled as mobile equipment rather than road autos, but liability and property treatment should be reviewed.
Why does storage height matter to insurance?
It can change fire protection adequacy and expected loss severity.
Can business income include extra warehouse expense?
Extra-expense coverage can potentially address temporary arrangements after a covered loss, subject to the form.