Nate Jones, CPCU, ARM, CLCS, AU
What insurance do you need for a new trucking company?
by Nate Jones, CPCU, ARM, CLCS, AU - Wexford Insurance - Trucking Insurance Agency
Looking for insurance for a trucking company can be an annoying task if you aren't working with an experience trucking insurance agent. Hopefully, this blog can help you make sure you have the correct trucking insurance coverage.
The first coverage you will want to make sure you have is liability insurance for trucking. If you are hauling for hire across state lines, you will want to make sure your insurance company can provide the MCS-90 Endorsement. Not all insurance companies will provide the MCS-90 endorsement, so it is important to specify to your insurance agent that you will need that prior to getting quotes.
What is an MCS-90 Endorsement?
The purpose of the MCS-90 Endorsement is to provide the FMCSA with verification that your insurance is active so that your DOT authority will continue to stay activated.
How much liability insurance do I need for trucking?
We would recommend that trucking company have a minimum of $1M in liability insurance. Excess liability limits can be purchased as your trucking company grows.
The second coverage your trucking company will need is physical damage insurance for commercial trucks. Physical Damage coverage will cover your physical truck in the event you get into an accident and also if your truck is stolen, vandalized, and other occurrences. I would recommend that you have a $1,000 deductible for this coverage.
What if I have a loan on my truck?
If you have a loan on your truck then you will be required to insure the physical damage of your truck. A loss payee endorsement can easily be added to your trucking insurance policy.
The third coverage your trucking company will need is motor truck cargo insurance.
Do I need cargo coverage for my trucking company?
If your trucking company is hauling goods for hire then you are responsible for the cargo while it is in your care, custody, and control. You will need cargo insurance to ensure that if the cargo is damaged, stole, or destroyed you will be covered.
Most freight brokers or freight forwarders require trucking companies to show a certificate of insurance showing cargo coverage prior to releasing loads. Since your trucking company may work with multiple freight brokers it is important to make sure you work with a trucking insurance agency that can issue certificates of insurance quickly so you do not miss out on loads.
The standard cargo insurance limit is $100K with a $1K deductible. Pricing for cargo insurance can vary depending on the type of freight you are hauling. If you are hauling general freight, refrigerated freight, flatbed freight, or hazmat freight you will want to make sure you have cargo insurance.
The potential fourth coverage your trucking company may need is insurance for your trailer or insurance for a non-owned trailer. Trucking trailers have been increasing in value so it is important to make sure you are insuring your assets in the event of a loss. If you are using a non-owned trailer, the shipper will require you to have insurance on the non-owned trailer or trailer interchange coverage.
Are you looking for new venture trucking insurance? Reach out to us today!