Trucking companies by law are required to purchase Automobile liability insurance. This insurance coverage provides financial protection for a driver who, while operating a vehicle, harms someone else or their property. Automobile liability insurance only covers injuries or damages to third parties and their property, not to the driver or the driver’s property. The two components of automobile liability insurance are bodily injury liability and property damage liability. Automobile liability insurance does not have a deductible.
- -Federal minimum requirement limit is $750,000 CSL
- -Texas minimum requirement limit is 500,000 CSL
We do advise our clients to consider purchasing $1 million CSL in Auto liability coverage as it is a common requirement from freight brokerages and shippers all across the United States. This coverage also provides superior protection to the motor carrier.
Motor Truck Cargo
Motor Truck Cargo insurance is intended to cover the freight the motor carrier is transporting, in the event of destruction, damage, or other loss of the clients property being shipped. It is very important that motor carriers purchase cargo insurance to protect those goods being transported. The typical coverage for a for-hire motor carrier is $100,000, but may increase based on commodities hauled and shipper or broker requirements.
Physical damage insurance provides protection against loss or damage to your covered vehicle resulting from an accident with another vehicle or object. Physical damage insurance is important for motor carriers and owner operators to carry and in many instances required based on if there is a lien holder. There are several distinctions to be aware of when purchasing physical damage insurance coverage. Collision provides physical damage insurance in the event of a collision whereas comprehensive typically provides coverage to repair or replace a vehicle in an incident that is not a collision. Theft and fire coverage is often added or included in comprehensive insurance as well.
A type of coverage available under either the truckers or the motor carrier policy form that covers the insured's legal liability for damage to the trailers of others. Coverage is also available, by endorsement, Motor carriers frequently haul trailers that are owned by other motor carriers. This is often done through a "trade" of trailers that are in different locations to facilitate scheduling. A trailer interchange agreement makes the motor carrier that has possession of the trailer responsible for any damage to the trailer, whether or not the trailer is attached to the tractor.
General liability (GL) is an important coverage that provides protection for your business for any property damage or bodily injury that might occur, not involving a truck. General liability also can provide premises coverage used for business. General liability will also pay for bodily injury, property damages, personal injury/bodily damage, and medical payments with respect to the policy limits and coverages.
Umbrella insurance is extra liability insurance. This type of insurance policy is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. The coverage is often purchased as a result of FMCSA regulations, contractual demands of a shipper, or in order to provide higher limits to more adequately insure a trucking company.