Custer Products

CUSTER PRODUCTS COVERS YOUR LIGHTING NEEDS

Custer Products was formed in 1993. Custer’s first products were manufactured on assembly lines in North Canton, Ohio. These products included Magnetic Work Lights, Retractable Battery Jumper Cables, Trouble Lights and Magnetic Tow Lights for RVs. Custer has had many changes since the early days in the 1990s. When we started, we were manufacturing products for large retail stores. Many of the stores we manufactured for were driven out of business or merged with even larger big box stores. Custer adapted by manufacturing and private labelling products for manufacturers that wanted to add to their product line who had presence in the larger stores. In fact, today, Custer still has products that are private labelled in larger retail stores.

Another step of the evolution was to enter the towing market. We became involved in the towing market somewhere around 1995. This was one of the best decisions that we ever made. I’m sure there are some people who remember Al. Al would attend the Tow Shows and would show our latest products and look for distributors or potential distributors to sell the products. As the sales increased, we expanded our product offerings. We went from offering only a few items to offering hundreds of items. The LED Lights and Safety Strobe lights were a great addition to the product line. This allowed us to meet and talk to many towers who were interested in updating their trucks from incandescent lighting to the new LED lighting.

In 2013, we expanded the product line again by acquiring Blades Tow Right, Inc. This allowed us to expand our line of tow lights to include the larger tow bars and wireless tow lights. We spent several years updating the technology for the wireless line and are confident in or high-quality bars. Please consider a Lite-It Wireless when making your decision on a light

bar. In 2018, Custer Products moved from North Canton, OH to Massillon, OH. We still do a lot of manufacturing at the Massillon facility including all of the Lite-It Wireless and magnetic tow lights. Custer Products is most recognized as a lighting company. All of Custer’s lights are quality made to specifications that are higher than similar products. All of our lights are warrantied. Custer Products can be found at many of your favorite towing distributors. If your distributor does not sell the Custer or Lite-It line, contact us and we will help you find the product. Also, if you would like more information on our products, look on www.custerproducts.com or call us at 1-800-490-3158.

BUILDING THE BEST WIRELESS TOW LIGHTS IN THE BUSINESS!

Proudly Made in the USA

Contains Auto-grade circuitry Individually serialized to prevent cross-talk & protect against theft

Toll Free: 800-490-3158 CusterProducts.com

EV’s TROUBLES

COMING!

As we move on with our day-to-day issues, everyone is feeling the anxiety and stress of the Russia–Ukraine War. With that going on, I want to first give a big thank you to all military personal who are currently serving and to all veterans. Your service is important to American society and our way of life. Again, from one combat veteran to another, I salute you and thank you for your service!

With the chaos going on, everyone in the towing industry is dealing with a lot of different issues. We are now getting over the COVID-19 pandemic, dealing with Russia bullying Ukraine, and face an average national diesel fuel cost of $4.16 per gallon. Then, let us not forget staff shortages, supply chain gaps for truck maintenance and parts and the dangers of motorists not paying attention when we are working on the side of the roadway. To remain profitable in the towing industry, we must factor in liability and the headaches that come with the everyday dangers of towing. Sometimes these issues are even more stressful because we worry about

damage claims and getting payment for services from motor club networks. With all this, we ask ourselves a simple question: Is the juice (profitability) worth the squeeze (stress and liability headaches)?

A recent roadside towing insurance article by Insurance Risk Services of Georgia dated Feb. 22, 2022 discusses how Georgia’s roadside assistance towing programs lack responsibility and accountability and expose motorists to great financial risks. That article’s writer states that a tow operator improperly hooked up his winch cable to a 2022 Ford Mach-E’s battery rail, causing $28,000 in vehicle damages. In this incident, there was no insurance coverage for the vehicle repairs. The article pointed out the tow operator arrived to the scene in a Ford F-550 to tow an EV, and the tow operator arrived at the scene with improper towing equipment. It is implied the situation resulted in the vehicle owner being solely responsible for damages to the Mach-E caused by the tow operator. The vehicle owner was told there was no insurance available for this claim on her insurance policy. How does this happen? Why do towing companies have commercial insurance?

Before I get into my discussion, I want to explain my intentions with this article. I am only pointing out a few of the legal issues we deal with daily. Today I am discussing the big liability elephant standing outside next to the wreckers. I want this article to get you thinking about some of the legal issues that tow providers are thinking about. These issues can sneak up unexpectedly on any of us. I suggest you think about these issues, and if you feel there is a need, get legal advice from a licensed attorney in your service area. I am not trying to start a debate or argument about what to do with your business operation or how; I am just trying to point out valuable information on important topics we have in the towing industry. Remember, the laws are different with each city and state.

In my research for this article, I have spoken to multiple government agencies, attorneys, insurance agents and adjustors. I found the most reliable information came from the FMCSA website chat with customer service agents. They can point you in the right direction and tell you where to get supporting documentation. In my research, what I found was surprising. It made me ask the question, “How well do you know the legal requirements of your towing operation?”

In my research, I was told all insurance claims are

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thoroughly investigated, and that a transportation/tow company must be legally compliant in all areas of its operation. This includes all requirements related to the performance of their duties. Towing companies must be up to date with licenses, permits’ DOT filings, safety inspections, DOT medical cards, municipal requirements and logbooks. There is a plethora of issues related to responsibility or liability for the insurance company to accept and defend a claim. Therefore, they want to know what happened before they accept responsibility. On the flip side, they are also investigating the other parties. If an insurance carrier finds a towing company is not operating legally, they will try to find a way to deny the claim under the legal issue of “engaging in illegal activity,” which provides a legal way to get out of liability by denying the claim. That is the nature of the insurance industry.

Not all liability issues are determined by the situation, tow operator and equipment. Sometimes matters can be out of a tow operator’s control. For example, a motor club network could be dealing with a damage claim that the vehicle operator clearly caused, but place liability and responsibility on the tow company because they want to keep their client happy and save face.

With all the various insurance news articles written about the towing industry, the subject of training is often discussed, but what does the word training entail? We know we can go to TRAA or Wreck-Master and get technical training on how to tow a vehicle. What about some type of training to learn the various legal requirements and issues involved with the operation of a towing company? From what I have learned, it does not exist. Even more troubling, most attorneys are not aware of all the legal issues involved. I was told the towing industry is a hybrid of multiple industries

that falls under regulations at all levels of government, and it is not uncommon to have different agencies state different facts about the same incident.

Towing falls under the transportation industry. The first legal issue of this discussion concerns the USDOT classifications of interstate (multistate) and intrastate (in-state only) registration for a transportation company. The USDOT is the agency that grants the authority for a transportation company to cross a state line, taking cargo into another state. Taking cargo over a state line without authority is subject to a $26,000 fine imposed by the DOT. Many people operate under the false belief that if a tow company is registered as an interstate carrier with an MCA number, they can operate (pick up and deliver) anywhere in the United States. This belief is false. In a United States Supreme Court case, Columbus v. Our Garage & Wrecker Service, Inc., 536 U.S. 424 (2002), the Court ruled that municipalities are subdivisions of the state and have a public safety interest in the regulation of the towing industry. With the municipal public safety interest, if they choose, they can enact more stringent regulations and rules in addition to the federal and state law requirements. Various cities across the country impose stiff regulations. The City of Atlanta has an in-depth ordinance requiring background checks that the city does not enforce, but the insurance carriers look for towing companies to be compliant. When they are not, they deny claims.

Two legal questions often debated throughout the towing industry is whether a tow provider

TP Q1

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can legally conduct unattended towing and what exactly is a bill of lading when towing vehicles? We know shipping companies and transport companies use bills of lading. This is a hot issue with insurance adjustors that process claims for transportation insurance carriers. We all know how often roadside assistance networks send out instructions for us tow providers to pick up unattended vehicles. Since they are dispatching us to do this, it has to be legal, right? The vehicle is not running, so it is not going anywhere. Is it legal to pick up and tow an unattended vehicle? We do not have to worry about this.

This answer to these questions is buried deep in multiple locations in the Code of Federal Regulations (U.S. CFR). When looking for an answer to this question, one must remember that towing companies operate under the authority of the United States Department of Transportation (USDOT), the Federal Emergency Management Agency (FEMA), Traffic Incident Management System (TiMs), Federal Highway Administration, Federal Motor Carrier Safety Administration (FMCSA), National Transportation Safety Bureau (NTSB), U.S. Customs and then the state and municipal agencies. With all these federal agencies having authority over us, we must remember that transportation/towing companies are required to follow their rules as a condition to operate with a DOT number. As a tow truck travels, it is subject to inspection or investigation at any time by law enforcement, especially when we are going through weigh stations. At a minimum, the driver is subject to a minimum of five years of incarceration for each violation of the U.S. DOT laws. These issues need to be taken seriously.

The first place we look to find the answer is with

federal law, U.S. 49 USC Ch. 801-816, BILLS OF LADING. This is the federal law that governs bills of lading for all transportation towing companies. This is the document that all transportation companies must fill out prior to providing services. This CFR provides the definitions, application, negotiation, warranties, delivery, responsibility, cost and liability; and U.S. 49 USC Ch. 816 provides the following penalty for violations of this code:

A person shall be fined under title 18, imprisoned for not more than 5 years, or both, if the person— (1) violates this chapter with intent to defraud; or (2 )knowingly or with intent to defraud— • (A) falsely makes, alters, or copies a bill of lading subject to this chapter; • (B) utters, publishes, or issues a falsely made, altered, or copied bill subject to this chapter; or • (C) negotiates or transfers for value a bill containing a false statement.

With the terrorist attacks of 9/11, the United States Homeland Security Act went into law. U.S. 6 CFR part 37 of the United States Homeland Security Identification Act placed minimum standards on identification cards accepted by federal agencies for official purposes. This act was first introduced in March of 2005, then amended in 2007 with “The Real ID ACT,” HR 1268. This act had great effects on business transactions that are conducted in the United States. This act is mandatory with all banking, transportation and travel in the United States. As a reminder, a towing/wrecker company is a transportation company that is moving cargo. If a tow operator is stopped by law enforcement on the side of the road or at a weigh station, law enforcement can inspect our cargo and ask questions like who and where we picked up the cargo, what condition it was in and who exactly authorized the movement of the cargo. We must be able to show this documentation upon request. We are responsible. If the cargo is stolen or contains a dead body or drugs, the driver of the truck is going to jail.

Many companies fail to have any type of terms of service or legal contracts for customers when towing vehicles, not to mention obtaining driver’s license when a tow operator picks up the vehicle or cargo condition report. The bill of lading must be signed prior to any onhook cargo coverage to kick in. Some tow providers say that the signature can be made electronically, without the motorist being present. This is correct; however, according to multiple federal law enforcement agencies that I spoke with, including the USDOT (which keeps law enforcement officers who have powers of arrest at all weigh stations), the only way to verify who turned over a vehicle and signed a bill of lading is face-toface contact. The transportation company is required to document and follow identification procedures with the cargo they are moving. If this cannot be done, the government could make a case of conspiracy and fraud against the transportation company if the circumstances warrant it.

The bottom-line question we must ask ourselves is this: How well do you know the legal requirements of your towing operation? Due to these requirements, we can get jammed up in a criminal case. How do we know a vehicle is not stolen or involved in criminal activity?