Trucking companies include a vast array of companies and cause the insurance industry to have several different classification codes associated with this industry. From a workers’ compensation perspective, coverage can be hard to find for businesses in the Trucking Industry. If businesses can find coverage, it is expensive in most states. Over the past few years, many national insurance carriers have even quit quoting coverage altogether for long-haul trucking companies. Many other carriers have a limited appetite for short-haul truckers. Other regional carriers can’t provide the coverage required when traveling into other states. For this reason, a few agencies and carriers have found a niche market where they can design affordable target programs for most trucking operations. This can benefit the trucking industry drastically.
Partnering with a nationwide agency is extremely important for long haul trucking companies. Some smaller agencies and carriers are only licensed to offer coverage in a small number of states. If you travel out of their network of states your business may not be covered if your employee is inured in that state.
Jurisdiction in relation to numerous states being involved in a workers comp claim is left up to something called the Walsh Test. The W.A.L.S.H. Test is an acronym to determine which state has jurisdiction. The acronym stands for:
Worked- Accident
- Lived
- Salaried
- Hired
Each letter in the word Walsh has a significance in relation to which states laws are followed when a claim occurs. Where an employee works and where the accident occurs are more relevant to the incident than the fact that the company was hired in one state or that the company offers a salary from their headquarters in another state.
This is just one example of how complex the trucking industry actually is and why it is best to partner with an agency and a carrier who specializes in this industry. They will be able to navigate the intricacies of this industry better than another insurance agency who might specialize in personal insurance lines, but also offers workers’ compensation.
Here is a list of common classification codes used in the Trucking Industry.
7228 – Short Haul Trucking – This class is used for long haulers who transport general merchandise less than 200 miles from their location. This class code applies to sand and gravel haulers, towing companies, as well as dump truck operators.
7229 – Long Haul Trucking – This class code applies to operators than haul general merchandise greater than 200 miles from their principal location. This may include automobile hauling.
7231 – Mail and Package Deliver and Courier Services – The applicable code for companies that deliver and or pickup non-owned packages and messages on a local basis.
7230 – Trucking – Package and Parcel Delivery – This class is utilized for trucking companies who delivery merchandise from retail stores to customers.
7380 – Commercial Drivers, Chauffeurs and Messengers – This class is intended for drivers who are not employed by a public transportation service and do not better fir another class code. This may include delivery by bicycle.
7232 – Contract Trucking – US Postal Service – Applies to mail, parcel and package delivery under contract with the US Postal Service.