Trucking and Transit companies have a unique set of NY workers’ compensation class codes for their industry. This overview provides basic information about workers’ compensation rates for class code 7219 along with other factors that go into operations and potential exposures when insuring these operations.
This post was originally published on July 28, 2011, and updated on May 28, 2020.
Trucking and Transit Workers Comp Categories:
SIC CODE: 4212 Local Trucking Without Storage
4213 Trucking, Except Local
4214 Local Trucking with Storage
NAICS CODE: 484110 General Freight Trucking, Local
484121 General Freight Trucking, Long-Distance, Truckload
484122 General Freight Trucking, Long-Distance, Less than Truckload
484220 Specialized Freight (except Used Goods), Local Trucking
484230 Specialized Freight (except Used Goods), Long-Distance Trucking
Suggested ISO General Liability Code: 99793
Suggested Workers Compensation Codes: 7219, 7228, 7229, 7230, 7231, 7232
NY Workers’ Compensation Rates for Class Code 7219
Description of Operations
Truckers transport cargo from its initial loading and pick up at the shipper’s location to final delivery and unloading at the receiver’s location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers’ goods. While some truckers transport freight to the same destinations on a regular basis, others transport single shipments to a specific destination. Trucking may be limited to a geographic area, to domestic destinations, or internationally to Canada and Mexico. The trucking industry is regulated by a number of federal agencies.
Business Insurance for Truckers & Trucking Companies: Potential Exposures
Property Exposure may be limited to electrical, heating, and cooling systems for an office location. If the company repairs, refuels and maintains its own vehicles on-premises, there will be flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray-painting should be conducted in a spray booth with explosion-proof fixtures. Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire. The condition and controls of fuel tanks, whether above or below ground, are important for both property and environmental liability. Fire hazards can arise from the combustibility of items stored for customers. There must be adequate aisle space to allow firefighters to carry out their duties. When another party does the packing, the warehouse will not know the type of property being stored or its potential fire hazards. If the rack storage of crates and boxes is used, there should be sprinklers in the racks. The sprinkler heads must be located high enough to avoid accidental contact with forklifts, but with enough clear space from the racks to allow unobstructed operation in the event of a fire. In order to reduce catastrophic losses, firewalls and fire divisions should separate the storage areas. Good housekeeping and fire controls are critical. Smoking should be prohibited. Forklifts should be refueled in a separate, ventilated area away from combustibles. As stored items are attractive targets for theft, there should be appropriate security including physical barriers to prevent entrance 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 warehouse facilities may not be readily available.
Inland marine exposure is from accounts receivable for billings to customers, computers to track shipments, motor truck cargo for the goods carried for others, and valuable papers and records for licenses and other regulatory information. Customers’ property may be damaged while being transported due to overturn, collision, or theft. Cargo containers should have locks and appropriate alarm systems. Most truckers are subject to minimum cargo legal liability requirements. The bill of lading spells out the terms of the agreement that must be honored. Insurance coverage will vary but may exceed these minimums if customer satisfaction is important to the trucker. Any items being transported or in storage must be marked to prevent incorrect release. Records should be duplicated and be stored off-site. If goods are stored for customers, warehouse operators’ legal liability coverage is needed. Limits needed will depend on the contract between the facility and its customers, but should spell out who is responsible for damage to stored goods.
Crime exposure is from employee dishonesty and from money and securities. Background checks, including criminal history, should be performed on all employees handling money. Trucking 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. Regular internal and external audits should be conducted. As drivers, loaders, and unloaders have access to customers’ premises, the exposure to theft of customer property or customer identity theft increases.
Premises liability exposure is extremely low due to limited public access. Cargo containers stored outside may present an attractive nuisance to minors. Fencing and lighting help reduce this exposure. Most off-premises exposures relate directly to truck operations, such as loading and unloading, and are covered under the motor carriers’ liability policy. Contracts may expose the operation to additional liability. The contract should spell out the responsibilities of each.
Environmental impairment exposure can be high due to the storage of fuel and the waste disposal of fluids used for servicing and repairing trucks. All tanks, underground or above, must meet state or federal regulations 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 trucks. Contracts should be in place to dispose of all environmentally dangerous chemicals. If there are underground storage tanks, a UST policy will be needed.
Automobile exposure is written on motor carriers’ policy. The exposure is very high because it includes loading, unloading, and transporting of freight. Customers and others can be injured should the movers drop or overturn items being carried. Children may be present during loading or unloading operations at residences or schools, requiring additional caution. All drivers must be well trained and attend continuing education courses to maintain and improve skill levels. They must have training in lifting and handling of items being carried and to safely operate trucks under all kinds of conditions, including adverse weather, construction impediments, darkness, and heavy traffic. They must have a valid commercial driver’s license (CDL) for the trucks being driven and the cargo being moved. MVRs must be acceptable and checked regularly. Manipulating a large semi-trailer rig in a residential or commercial area requires training and awareness of surroundings. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Hands-free two-way communication and GPS systems should be installed on all trucks. Random drug and alcohol testing should be required. Vehicles must be maintained and records should be kept in a central location. Accidents can result in the spillage of diesel fuel or other operating fluids from within the truck, requiring cleanup.
Workers’ compensation exposure is moderate from driving, loading, and unloading customers’ goods, and repair and maintenance activities. Drivers generally work alone, often after dark, and must operate in adverse traffic conditions such as inclement weather or road construction. Ergonomically designed seats can reduce back and leg injuries to drivers who sit in the same position for hours at a time. They must be monitored to ensure that an appropriate amount of time is allocated for sleep. Loading and unloading can result in all forms of back injury, hernia, sprain, and strain losses. The training, material handling devices, and equipment are important to review. Drivers can be injured in collisions. Garage employees can be injured by vehicles falling from hoists, strains, sprains, and other lifting injuries. Good housekeeping is critical to reducing injury from slips, trips, and falls. Burns, eye injuries, and respiratory problems can occur with welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents. Repair areas should be properly ventilated. Proper safety equipment is required. If independent owner-operators are used, responsibility for workers’ compensation coverage must be specified by contract.
NY Workers’ Compensation Rates for Class Code 7219 Trucking – NOC
Truckers classified under 7219 received a rate increase of 13% in 2011 on their NY State Workers Comp policies. Subsequent coverage years since that time have seen both increases and decreases. Because rates potentially change each year, it’s important to stay up-to-date with the latest pricing. See our NY workers comp insurance rates for truckers here: https://www.enforcecoveragegroup.com/click-your-industry-for-access-to-immediate-rates/new-york-workers-comp-rates-trucking/.
Definition: Applied to Truck companies that haul general merchandise under contract for others.
Who Can Use it: In NY State, Class Code 7219 is used by long and short-haul truckers that transport products, merchandise, automobiles, freight, and aggregate such as sand and gravel owned by others. Trucks can be tractor-trailers or dump trucks. NY State Workers Compensation regulations define 7219 as an all-inclusive class code meaning everyone in the operation other than clerical and executives must fall under 7219. Several other specialty transportation companies may apply and you should call Enforce Coverage to determine if you are classed properly.
Pricing: The rate for class code 7219 has been on a steady climb for the last several years. Usually, in the 10-14 dollar rate category, it is one of the more expensive. Truckers with a clean loss record and safety program can yield better than average rates.
Who’s Writing Workers Comp Coverage for Truckers: NY Workers’ Compensation Rates for Class Code 7219
Truckers who feel that the State fund is their only option should contact us today to discuss specialty programs and carriers
Minimum recommended coverage:
Building, Business Personal Property, Business Income, and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability, and Physical Damage, Hired and Nonownership Auto, Workers Compensation
Other coverages to consider:
Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators’ Legal Liability, Cyber liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability, International Coverages