An agent is a person or organization authorized to conduct business on behalf of another person or organization. Insurance is generally given to goods or services that have a pure risk that is the chance of a loss only, rather than a speculative risk of loss or gain. Losses can result in commercial truck transport due to poor handling of cargo during movement, theft, exposure to weather, acts of God, and piracy.
The first step to becoming a commercial truck insurance agent is to obtain a general insurance license within the applicable jurisdiction. General insurance licenses are commonly issued by state and provincial insurance councils.
The requirement for a general insurance license will usually start at the salesperson level. A salesperson license is an entry level license that allows the license holder to sell insurance while under direct supervision. In Canada, the education requirements for a general insurance license can be met through either the Insurance Brokers Association of Canada or the Insurance Institute of Canada. The specific course information, method of delivery, and program requirements can be found at the corresponding websites of these regulatory organizations.
- British Columbia
- New Brunswick
- Nova Scotia
- Prince Edward Island
The Insurance Institute of Canada specifically has many courses available to train an aspiring insurance agent in cargo insurance, automobile insurance, commercial lines insurance, goods in transit insurance, and several other underwriting courses. Marine cargo insurance is used in cases of international transport. There are main types of marine cargo insurance which include coverage A, B, and C. Coverage A is the highest insurance shippers can get which is like *All Risks Coverage. This will include losses incurred due to perils such as collision, water damage, sinking, piracy,
While the requirements to sell insurance vary, the education prerequisites are higher as the designation authority increases. CAIB 2 and CAIB 3 are the sections of the CAIB designation program that place greater emphasis on commercial truck insurance theory. The Chartered Insurance Professional (CIP) designation has been claimed by some industry professionals to be better recognized among the industry vs CAIB.
Types of Trucking Insurance
Types of trucking insurance include:
- Liability insurance – is meant to protect the trucking operator in the event a major incident occurs.
- Damage insurance
- Cargo insurance
- Non-owned trucking liability
To become a principal broker and to operate an insurance brokerage will usually require some level of work experience to be accumulated. Therefore, it is important to obtain a general insurance license as soon as possible and accumulate enough work experience to satisfy the regulatory requirements if one wishes to have full privileges as a commercial truck insurance agent.