Whether you are an existing trucking company or thinking about starting one, you should know which coverages you absolutely need. This includes for-hire trucker, motor carriers, and owner-operators. Throughout this trucking blog I am going to explain the 5 trucking insurance coverages that a trucking company should have.
Trucking Auto Liability (Commercial Auto Liability)
This trucking insurance coverage is required for all trucking companies. There is no way around this coverage. Trucking Companies are required to purchase auto liability insurance which is also referred as truck liability insurance because of their use, ownership, and maintenance of any insured truck.
This coverage protects trucking companies for their legal liability of operating a motor carrier. Usually, the minimum trucking liability limit is $750,000 that is mandated by state and federal (BMC-91 or BMC-91X) regulation. Although the state and federal mandate a $750,000 minimum trucking liability limit, most freight brokerages require $1 million in coverage.
General Liability Insurance or also called Commercial General Liability Insurance
General liability insurance policy provides coverage to commercial entities for multiple types of risks with the exception of automobile and professional liabilities. That means the general liability insurance will pay for events you become liable for when you are not driving, such as medical charges or compensation for damaged property.
I know you are thinking, but Nate my truck is parked I don't need this.
This trucking insurance coverage comes into play if your truck causes damage while it is being parked and liability events at your place of business. That could include a pedestrian coming onto your place of business and getting injured from a slip and fall. This also could include an error in delivery of products resulting in damage. Actions of another driver while being on the premises of others.
Cargo Insurance or Motor Truck Cargo Insurance
Trucking companies will more than likely need to purchase cargo insurance or motor truck cargo insurance. This covers the cargo that is in the trailer that your truck is hauling against damage, fire, theft, and much more. Most freight brokers hold the trucking company liable for the cargo after the truck picks the cargo up to the moment that the cargo is dropped off.
The standard motor truck cargo limit is $100,000. Depending on what your trucking company is hauling, you may need to raise your limits to $250,000 or $500,00.
I suggest that a trucking company starts out with a $100,000 motor truck cargo limit and if a freight broker requests that you need a higher limit to contact your agent and raise it.
Trucking Physical Damage Coverage - Comprehensive & Collision Coverage for Truckers
Trucking company's will need to purchase trucking physical damage coverage on their autos if they are financed. The trucking finance company will require the trucks to be insured in case the trucking company gets into an accident physically damaging the insured truck.
If the trucking company's truck is not financed it is still a good idea to insure your motor carrier. Self-insuring the costs of repairing your truck after an accident could be a huge hit to the profitability of your trucking company.
Health Insurance
If you are an owner-operator, trucking company owner, or any living person it is always a good idea to have health insurance. Accidents happen and self-insuring medical costs are never a good idea.
If you want Wexford Insurance to review your trucking insurance reach out to us here.