How to Choose the Right Box Truck Business Insurance Limits
- 5 days ago
- 2 min read
Selecting the right box truck business insurance limits is one of the most important financial decisions you’ll make as a trucking or delivery business owner. While meeting minimum legal requirements is essential, choosing limits that truly protect your operation requires careful evaluation of your risks, contracts, and long-term goals.
Here’s how to determine the right commercial truck insurance limits for your business.
Start with Federal and State Requirements
If you operate interstate, the Federal Motor Carrier Safety Administration (FMCSA) requires minimum levels of primary liability insurance, typically starting at $750,000 for general freight. However, many brokers and shippers require $1 million in liability coverage before offering contracts.
Intrastate operators should also confirm state-specific minimums through their local Department of Transportation.
Meeting minimum requirements keeps you legal—but it may not fully protect your business.
Evaluate Your Liability Exposure
Accidents involving commercial vehicles can result in six- or seven-figure claims. Medical expenses, property damage, and legal defense costs add up quickly.
While $750,000 may satisfy federal regulations, serious accidents can exceed that amount. Many box truck operators choose $1 million or more in liability coverage to better protect assets and future earnings.
Consider:
Population density in your operating area
Average claim values in your state
Contractual insurance requirements
Higher limits often provide stronger long-term protection.
Determine Proper Cargo Limits
Choosing the right motor truck cargo insurance limits depends on the maximum value of freight you haul. Many box truck businesses carry $100,000 in cargo coverage, but higher-value shipments may require $250,000 or more.
If your load value exceeds your cargo limit, your business may be responsible for the difference.
Factor in Physical Damage Coverage
Your truck is a major investment. Physical damage coverage (collision and comprehensive) should reflect the true market value of your vehicle. If financed or leased, lenders typically require full coverage based on the truck’s replacement value.
Underinsuring your truck could leave you short in the event of a total loss.
Consider Umbrella Coverage
For added protection, some box truck businesses purchase a commercial umbrella policy, which increases liability limits beyond primary coverage. This is especially beneficial for growing fleets or operators handling high-profile contracts.
Balance Cost and Protection
Higher limits increase premiums—but being underinsured can cost far more in the event of a serious claim. The goal is finding a balance between affordability and adequate protection.
Working with a transportation insurance specialist ensures you select limits that meet legal requirements, satisfy broker contracts, and protect your financial future.
Get Expert Guidance on Your Coverage
At Wexford Insurance, we help box truck and delivery business owners evaluate risk exposure and select the right insurance limits for their specific operation. We compare multiple carriers to secure competitive pricing while ensuring you’re fully protected.
Don’t guess when it comes to your coverage limits.
👉 Request a box truck insurance quote from Wexford Insurance today tailored to your needs.
