Want to protect your mobile command center investment from costly lawsuits?
Operating without proper insurance/in indemnity provisions in your command vehicle contract is folly. One accident/liability claim can erase years of profits.
Here’s the problem:
Operators rarely give consideration to coverage and contractual provisions until after the fact. By the time you realize you need coverage, it is often cost prohibitive to buy what you need.
In this blog post, you will discover the top insurance and indemnification clauses that will help protect your operations and hard earned command vehicle ROI.
Let’s jump in!
What’s covered in this guide:
- Why Mobile Command Center Operators Need Strong Coverage
- The Most Important Insurance Policies You Need
- Key Indemnification Clauses For Every Contract
- Tips To Maximize Your Protection
Why Mobile Command Center Operators Need Strong Coverage
Commercial trucks now dominate America’s litigation crisis. One out of every four trials that produced a verdict of $10 million or more against a defendant involved a commercial trucking company, the U.S. Chamber of Commerce has found.
That’s quite a scary number for any operator deploying a million-dollar command vehicle. MCₑ’s are typically seen in the following environments:
- Emergency response situations
- Public safety operations
- Disaster recovery zones
- Large public events
These situations are inherently dangerous. You’re working in some of the most unpredictable places in the world. Things can (and will) go wrong. Inadequate protection can leave a minor mishap turn into a costly catastrophe.
Mobile command centers cost tens, if not hundreds of thousands of dollars. You can find more details on the cost of a mobile command center here. When you’re investing that much money, you can’t skimp on protection.
Your return on investment for your command vehicle is dependent on maintaining operational readiness and insulating your business from liability. One poor judgement accident can ruin both instantly.
The Most Important Insurance Policies You Need
Every operator should have a few policies in place. Neglecting any of the following will leave you vulnerable.
Commercial Auto Liability Insurance
This is the bedrock of your coverage. Commercial auto liability protects you for bodily injury and property damage caused by your command vehicle when it’s driving or being operated. Numbers game!
The median verdict amount in a trucking lawsuit exceeding $1 million reached $22.3 million, up from $2.3 million nine years ago. These are findings from recent research. That’s an increase of almost 1,000% in ten years.
Coverage limits are typically between $1 million and $5 million. You may want to consider higher limits if you have a higher risk operation.
General Liability Insurance
General liability insures third-party bodily injury or property damage that occurs in the course of your operations. This is extremely important when your command post is set up at an event or emergency scene. Trip over a cable? Covered. Equipment falls and causes property damage? Covered.
Inland Marine Insurance
Don’t be thrown off by terminology here. Inland marine insurance protects your equipment while it’s traveling or being used away from your primary location. This is crucial for mobile command centers filled with high-dollar technology. Imagine:
- Communications equipment
- Computer systems
- Surveillance gear
- Specialized tools
They are typically worth ten’s of thousands of dollars and won’t be covered by normal auto insurance.
Cyber Liability Insurance
Mobile command centers process confidential information. One data breach can leave you vulnerable to huge liabilities. Cyber liability insurance protects you from data breach clean-up costs, notification fees, legal defense and regulatory penalties. As more command centers connect to public safety answering points, cyber liability insurance isn’t optional.
Key Indemnification Clauses For Every Contract
Insurance is only part of the solution. The other part is ensuring your contracts have solid indemnification provisions that transfer risk.
Here’s why this matters:
Even with adequate insurance, you can still be drawn into litigation to which you were only peripherally related. Solid indemnification provisions help you shift that responsibility back onto the proper party.
Mutual Indemnification Clauses
Mutual indemnification is when each party agrees to indemnify the other party for its own negligence. This is the fairest approach and should be used in most contracts. Basically, you agree to indemnify each other for your respective negligence. Everyone is responsible for their own mistakes.
read more : https://lawsuitio.com/
Hold Harmless Agreements
Hold harmless clause : where one party agrees not to hold the other liable for damages incurred/injuries suffered during the term of the agreement. There are 3 types of :
- Broad form: Covers all liability, even if the other party is at fault
- Intermediate form: Covers liability for joint negligence
- Limited form: Covers liability only for your own negligence
For most operators, intermediate or limited forms are more enforceable and reasonable.
Insurance Requirement Clauses
Always insist on parties with whom you deal purchasing their own insurance. The contract should require minimum levels of coverage, types of policies, additional insured requirement, and evidence of coverage. That way if a claim occurs, there will be multiple policies available rather than just yours.
Limitation of Liability Clauses
Limitation of liability clauses limit how much you can be sued for under a contract. As nuclear verdicts become more common, this type of protection is incredibly important. A well written limitation of liability clause can protect your business from business-ending judgments.
Tips To Maximize Your Protection
Tips to ensure you’re maximizing your protection.
Review Your Policies Annually
Don’t buy insurance and ignore it. Operations evolve, laws change, and your coverage should too. Put a yearly reminder on your calendar to review your policies.
Work With An Industry Specialist
Non-specialized insurance brokers won’t grasp the distinct risks presented by mobile command centers. Collaborate with a specialist who understands your industry. They can help you locate more coverage for less money and identify gaps that other agents would overlook.
Document Everything
Good documentation is your best defense in a lawsuit. Keep detailed records of:
- Maintenance schedules
- Operator training
- Incident reports
- Safety protocols
This paperwork could save your operation if ever a claim arises.
Get Legal Review Of All Contracts
Never sign a contract before having an attorney review the indemnification provisions. A couple hundred dollars today can save you millions.
Final Thoughts
Insurance is only one layer of protection for your mobile command center business. You need both comprehensive insurance coverage AND robust indemnification language.
The great news? Once in place these protections allow you to do what’s most important… Run your operations and grow your business.
Don’t wait for a crisis to happen. Act now and implement proper safeguards.
