Trucking Insurance and the Requirements for Liability Coverage
Interstate transportation companies are required to follow Federal and State governmental laws by carrying specific limits of coverage for bodily injury, property damage, and environmental restoration on their trucking insurance policy. Depending on the type of trucking business you have, the amount of public liability insurance required will vary.
The FMCSA requires trucks that are under 10,000 pounds GVW to carry at least $300,000 of public liability coverage. The most common amount is for trucks weighing more than 10,000 GVW with public liability coverage of $750,000. Hazardous materials being transported cause the liability coverage to increase to $1,000,000.
There is also a requirement for the cargo being transported to be insured for at least $5,000. However, most companies having good being transported require that the cargo is covered with $100,000 of cargo insurance coverage.
Besides the coverage required by the FMCSA, the company’s home state will also have regulations in regards to trucking insurance. It is smart to contact an insurance agent that has experience with the trucking insurance options and requirements.
After they have purchased their insurance policy, the insurance provider and not the agent will file the required forms with the FMCSA. The provider has about 20 days to make the insurance filing after they have received FMCSA authority. Owning or leasing the trucks being insured is required before they can receive this authority.
To avoid any fines or tickets it is important to understand what the insurance requirements are for all parties involved. By doing so it will be a lot easier to purchase a trucking insurance policy that will protect the company and its investments.
If there are questions about the amount and type of coverage that the company is in need of, call an insurance broker. Brokers have experience working with trucking insurance policies, and will be able to ensure that a policy is purchased with all the necessary coverage types and amounts.
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