Commercial Trucking Insurance:As a motor carrier for hire you will need to consider the following insurance coverages. Auto liability and cargo Liability are required to activate your operating authority.
Auto Liability:
The Federal Motor Carrier Safety Administration (FMCSA) will require you to carry a minimum of $750,000 of auto liability insurance. However, most brokers and customers you haul for will require a $1,000,000 limit. This coverage will protect you if you cause bodily injury or property damage to others while operating your truck.
Cargo Insurance:
If you are a common carrier the FMCSA will require you to carry a minimum of $5,000 cargo liability insurance. Most brokers will require a $100,000 limit. This coverage protects the load you are hauling against collision, fire and theft.
Physical Damage:
This coverage is not required by the FMCSA. Physical damage coverage protects your vehicles against collision, fire, theft, vandalism, windstorm and other named perils. If you have a loan against your vehicles your financial institution will require that you protect your vehicles with this coverage. A $1,000 deductible usually applies.
General Liability:
This coverage is not required by the FMCSA. Some brokers may require that you carry general liability coverage. This coverage protects your trucking company and operations it performs other than with the vehicles you have. Brokers and other customers you haul for will usually require $1,000,000 limits.
Operating Authority:
If you transport freight involved in interstate commerce for compensation (for-hire) which means the freight has come from another state or country or you will transport freight to another state or country you will be required to obtain a Federal Motor Carrier Operating Authority from the FMCSA and a US DOT Number from the U.S. Department of Transportation (USDOT).
BOC-3 Process Service:
The FMCSA requires all transportation companies (brokers, motor carriers, and freight forwarders) to have a BOC-3 Process Service on file. The BOC-3 filing designates a transportation company’s process service agent on record for every state in which they operate. BOC-3 agents are those who may be serviced with court papers in any proceeding brought against a transportation company.
USDOT Number:
A United States Department of Transportation (USDOT) Number is issued by the Department of Transportation. It tracks all your company’s information with the different Federal and State Agencies. A US DOT Number does not constitute authority to operate in interstate commerce.