PROTECTION FOR EVERY MILE
Glossary of Commonly Used Terms
A B C D E F G H I L M O P Q R S U V
A
Actual Cash Value (ACV): The market value of a truck or its cargo at the time of a loss, based on the replacement cost minus depreciation.
Alternative Fueled Vehicle (AFV): A vehicle that operates on energy sources other than gasoline or diesel fuel.
B
Bill of Lading: A detailed document listing the items included in a shipment.
Bobtail Insurance: Liability coverage designed to protect owner-operators when operating their truck without a trailer, often during off-duty periods or while traveling between jobs.
BOC-3 (Blanket of Coverage): A federal filing required for trucking companies operating across state lines in the U.S. It designates a process agent in each state who can accept legal documents on behalf of the company. Filing a BOC-3 with the FMCSA is mandatory to activate operating authority for motor carriers, freight forwarders, and brokers.
Box Truck: A single-unit vehicle where the cargo area is permanently mounted to the truck’s chassis, unlike a tractor-trailer setup.
Bridge Formula: A regulation enforced by federal and state governments to control the weight distribution across a vehicle’s axles and ensure proper spacing between them to protect bridges.
C
Cargo: The goods or materials transported by a truck.
Cargo Insurance: Coverage that protects the freight being transported in case of theft, damage, or loss.
Cargo Weight: The total weight of a vehicle's load, including gear and supplies.
Cartage Company: A business specializing in local freight pickup and delivery services.
Combined Single Limit (CSL): A single liability coverage limit that applies to both bodily injury and property damage, instead of having separate limits for each.
Commercial Auto Insurance: Insurance for vehicles used in business operations, including trucks.
Common Carrier: A company that provides freight services to the general public rather than to specific clients under a contract.
Container: A large, standardized shipping box—typically 20 or 40 feet long—that can be transported by ship, rail, or truck. Some containers are designed solely for rail and road transport.
Contingent Cargo Insurance: Backup coverage that applies if a motor carrier's primary cargo policy denies a claim or doesn't fully cover it.
Contract Carrier: A company that transports goods for select customers under specific contracts.
D
Deadhead: A truck traveling without a load.
Deductible: The portion of a claim cost the insured must pay out of pocket before insurance coverage begins.
Department of Transportation (DOT): The federal agency overseeing highways, aviation, railways, transit systems, and other transportation infrastructure in the United States.
DOT Number: A unique identifier issued by the DOT to commercial trucking companies, required for regulatory compliance.
E
EDI (Electronic Data Interchange): A digital system for exchanging transportation-related documents, such as bills of lading.
E-Log: A digital logging system that tracks driver hours, mileage, and other details, improving scheduling and compliance with federal regulations.
Endorsement: A modification to an insurance policy that changes, adds, or removes coverage. Examples include adding new vehicles or drivers.
EOBR (Electronic On-Board Recorder): A device that records data about a truck’s operation and trips.
Fifth Wheel: The mechanism connecting a tractor to a trailer, allowing pivoting and support for the trailer’s front end.
F
Filings: Documents submitted to federal or state agencies to prove compliance with trucking regulations, such as insurance requirements.
Flatbed: An open trailer used to haul oversized or uniquely shaped loads, such as construction equipment.
Federal Motor Carrier Safety Administration (FMCSA): The government agency regulating commercial trucking and enforcing insurance requirements for interstate operations.
G
General Liability Insurance: Coverage for non-driving risks, such as injuries at a business location or property damage caused by business activities.
H
Hazmat: Hazardous materials requiring special handling and transport.
Headache Rack: A protective barrier behind the truck cab to shield the driver from shifting cargo.
Hired and Non-Owned Auto Insurance (HNOA): Coverage for vehicles not owned by a business but used for business purposes, such as rentals or employee-owned vehicles.
Hours of Service (HOS): Regulations governing how long truck drivers can operate their vehicles to ensure safety.
I
IFTA (International Fuel Tax Agreement): An agreement that simplifies fuel tax reporting for carriers operating in multiple states or provinces. Carriers must file quarterly returns detailing fuel use and mileage in each jurisdiction.
IRP (International Registration Plan): An agreement that allows truckers to register their vehicles in one state and operate in multiple states or provinces, with registration fees based on miles driven in each area.
Intermodal: The transportation of goods using multiple methods, such as ships, trains, and trucks, during a single journey.
L
LCV (Long Combination Vehicle): Vehicles longer than standard double trailers, such as triple-trailer configurations.
Lessee: A person or company renting or leasing property from another party.
Lessor: A person or company that owns property being rented or leased to another party.
Liability Insurance: A required coverage that pays for injuries or damages caused by the truck driver to others.
Lift Axle: An additional axle that can be lowered for heavier loads to comply with weight regulations.
Logbook: A driver’s record of hours worked and activities over a 24-hour period.
Logistics: The planning and coordination of moving people and goods efficiently.
Long-Haul: Trucking routes that cover long distances, often across states.
Lowboy: A flatbed trailer with a low deck, used for hauling tall or heavy items like construction equipment.
LTL (Less-Than-Truckload): Shipping services for loads smaller than a full truckload, combining shipments from multiple customers.
LTL Carrier: A carrier specializing in consolidating smaller shipments from various customers on one truck.
M
MC150 (Motor Carrier Identification Report): A form submitted to the FMCSA that provides details about a motor carrier’s operations, ownership, and insurance coverage, required for registration to operate across state lines.
MC Number (Motor Carrier Number): A unique number issued by the FMCSA that allows a trucking company to legally transport goods across state lines. (Is sometimes also called, Motor Carrier Number, Operating Authority Number, FMCSA MC Number, USDOT Operating Authority, FMCSA Operating Authority Number)
Motor Truck Cargo Insurance: Protects freight being transported against loss or damage from events like theft, collisions, or other covered risks.
Motor Truck General Liability (MTGL): Insurance that covers claims for injuries or property damage resulting from a trucker’s business operations off the road.
O
Owner-Operator: A self-employed truck driver who either works independently or leases their truck to a carrier.
OTR (Over-the-Road): Long-distance trucking, as opposed to local or regional deliveries.
P
P&D (Pickup and Delivery): Local freight transportation services.
Payload: The weight of the cargo a truck is carrying.
Physical Damage Insurance: Coverage for repairs or replacement of a truck damaged by collisions, fire, theft,
or vandalism.
Private Carrier: A trucking operation that moves goods exclusively for its parent company.
Primary Liability Insurance: Required coverage for damages or injuries caused by a commercial truck during operation.
Q
Qualcomm: A wireless communication system used by trucking companies for GPS, messaging, and load updates.
R
Reefer: A refrigerated trailer used to transport perishable goods.
Reefer Breakdown Insurance: Coverage that protects refrigerated cargo in case of temperature control failure or equipment breakdown.
Road Railer: A trailer designed for both road and rail transportation.
S
Straight Truck: A one-unit truck with an integrated cargo area, unlike a tractor-trailer combination.
U
UCR (Unified Carrier Registration): A program requiring interstate trucking companies to register and pay fees annually.
Umbrella Policy: Additional liability coverage that extends beyond the limits of existing policies.
Underwriting: The process insurers use to assess risk and set coverage terms and premiums.
Unladen Liability Insurance: Coverage for accidents occurring while a truck is operating without a trailer attached.
USDOT Number: A unique identifier assigned to commercial trucking companies for regulatory purposes.
W
Workers’ Compensation Insurance: Coverage for employees who experience work-related injuries or illnesses.
V
VIN (Vehicle Identification Number): A unique code assigned to every vehicle by the manufacturer.