If you’re operating a trucking company, you’re going to need commercial trucking insurance. This will protect you should a vehicle in your fleet be involved in an accident, or a driver be injured in that accident, or even if one of your trucks is hit in a rest stop’s parking lot.
Federal and state government requires that every motor carrier carry primary liability insurance on every vehicle in your fleet, including those that are leased, as well as tractor trailers. The state and federal agencies require that you send proof of coverage to them. You’re required to carry a minimum of $750,000 in primary liability coverage, although the industry standard is $1 million.
Another type of commercial trucking insurance is cargo insurance, which protects you in case the freight you are hauling is damaged, lost or vandalized.
If you are a common carrier (you hire yourself out to many different companies to haul their goods), you need cargo insurance. If you are a contract carrier (you contract with specific companies only), you’re not required to have cargo insurance. The minimum cargo insurance coverage is $5,000, although the industry standard calls for $100,000.
Non-trucking liability insurance also is a good idea to purchase. Also known as “bobtail insurance“, this covers your vehicles when you’re not your vehicle isn’t running, such as when it’s at your mechanic’s shop, or if it’s in an accident when you’re using a vehicle for personal (non-trucking) purposes.
Another good commercial trucking insurance package to consider is the general liability insurance. This covers accidents that don’t occur on the road, such as when another truck hits your vehicle in a parking lot, or for mishaps that take place during loading and unloading of cargo. This insurance also covers theft and vandalism.
Here at Your Authority Service, we’re knowledgeable in the latest insurance regulations as well as the different commercial trucking insurance packages available. We look forward to helping you choose the type and amount of coverage that’s best for you.