CPC Module Theft: Are Your Trucking Clients Covered?

Recently, thieves have been targeting a pricey semi-truck component – the common powertrain controller (CPC) module. According to Daimler Truck North America LLC (DTNA), a leading manufacturer of large commercial trucks, the theft of CPC modules has been on the rise over the past two years, with thieves reprogramming devices and installing them on other vehicles. Last year, DTNA reported an unprecedented instance in Pennsylvania where CPC modules were stolen from 24 parked trucks.?

Here, we’ll take a closer look at this growing issue and how insurance agents and brokers can help their trucking clients be better protected against CPC module theft by understanding specific best practices and having the right insurance to mitigate their risk exposure.

What has created this trend?

The rise in CPC module thefts can be directly attributed to the ongoing supply chain issues and increased costs for used vehicles. Simply put, the microchips that are used in the modules are scarce, making them attractive targets for thieves who can sell them on the black market at a premium. Adding to a loss, the process of extracting the modules from trucks can cause substantial damage to doors, dashboards and windows, costing transportation businesses thousands of dollars in repair costs.

How does insurance cover CPC module losses?

Because comprehensive insurance includes coverage for losses due to theft and vandalism, it will, in most cases, cover the loss of a CPC module and the damage done to the truck to extract it. Therefore, if a vehicle has liability coverage only, the theft of a CPC module and associated damages would not be considered a covered loss.

Depending on the policy and the individual claim situation, some CPC modules may be covered under a motor truck cargo (MTC) insurance policy. However, MTC insurance policies are meant to only provide protection for the equipment and cargo that is located inside a truck and cover losses that occur due to an accident or theft. The theft of a CPC module from a truck typically will not be covered under an MTC insurance policy unless the policy specifically states that a CPC module is considered part of the truck’s cargo. The degree of coverage offered by a MTC policy will differ among carriers, as well as policy exclusions and limitations.

Tips to pass on to your transportation insurance clients to help prevent CPC module thefts:

• - Make sure that all CPC modules are password-protected.
• - Remind all drivers to routinely lock their cab doors. If they must leave the cab for any amount of time, instruct them to turn the engine off, remove the key and take it with them.
• - Ask drivers to try and park their rigs in safe, well-lit areas. When possible, drivers should attempt to locate a fenced or gated location in which to park.
• - Consider installing some type of vehicle alarm system in company trucks.?
• - Have customers and repair facilities cross-reference vehicle identification numbers from CPC modules that are brought in for installation against the company’s CPC module database. This ensures that the module has not been stolen and/or illicitly sold.
• - In the event of a theft, always report a stolen CPC module to local law enforcement and notify DTNA at 1-800-FTL-HELP. DTNA can help track and recover stolen CPCs as it maintains a database of CPC modules that cross-references a vehicle’s identification number to detect any stolen module attempting to be installed on a rig with a different VIN.

To learn about our transportation insurance products and how we can best serve you, our retail broker clients, please email [email protected] or call 760-302-5300.

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