Commercial Truck Insurance Requirements

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Commercial trucking is an essential aspect of the business world, responsible for the transportation of goods across the country. As a commercial truck driver, it’s important to be aware of the various insurance requirements that come with operating a trucking business. In this article, we’ll explore the different types of commercial truck insurance and the requirements that come with them.

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Primary Liability Insurance

Primary liability insurance is a mandatory coverage that every commercial trucking business must have. This type of insurance protects the trucking company from any damages or injuries caused by the driver while on the job. Without primary liability insurance, commercial trucking companies would be vulnerable to costly lawsuits and legal fees.

The requirements for primary liability insurance can vary between states and the type of cargo being transported. However, the Federal Motor Carrier Safety Administration (FMCSA) requires a minimum of $750,000 in coverage for most types of cargo. Some types of hazardous materials require a minimum of $1 million in coverage.

In addition to the coverage amount, primary liability insurance also requires the trucking company to have a valid Motor Carrier (MC) number and a U.S. Department of Transportation (DOT) number. These numbers are necessary for the FMCSA to keep track of commercial trucking businesses and ensure they meet safety standards.

It’s important to note that primary liability insurance only covers damages or injuries caused by the driver while on the job. Any damages or injuries caused by other drivers are covered by their own insurance policies.

Cargo Insurance

Cargo insurance is another important coverage for commercial trucking businesses. This type of insurance protects the cargo being transported in case of damage, theft, or loss during transit. Cargo insurance is not required by law, but it’s highly recommended as it can save the trucking company from significant financial loss.

The requirements for cargo insurance can vary depending on the type of cargo being transported. However, the FMCSA requires a minimum of $5,000 in coverage per vehicle for non-hazardous freight and a minimum of $10,000 in coverage per vehicle for hazardous materials.

Physical Damage Insurance

Physical damage insurance is a coverage that protects the commercial truck itself from damages such as collisions, theft, fire, and natural disasters. This insurance is not required by law, but it’s recommended for trucking businesses that own their own vehicles.

The requirements for physical damage insurance can vary depending on the value of the truck and the type of cargo being transported. It’s important for trucking businesses to carefully evaluate their vehicles and cargo to determine the appropriate level of coverage needed.

FAQ

Question
Answer
Is commercial truck insurance required by law?
Yes, primary liability insurance is mandatory for all commercial trucking businesses.
Do I need cargo insurance?
Cargo insurance is not required by law, but it’s highly recommended to protect your cargo from financial loss.
What is the minimum coverage required for primary liability insurance?
The FMCSA requires a minimum of $750,000 in coverage for most types of cargo.
What is physical damage insurance?
Physical damage insurance is a coverage that protects the commercial truck itself from damages such as collisions, theft, fire, and natural disasters.

Conclusion

Commercial truck insurance is a necessary aspect of running a successful trucking business. Primary liability insurance is a mandatory coverage that protects the trucking company from damages and injuries caused by the driver. Cargo insurance and physical damage insurance are not required by law, but they’re highly recommended to protect the cargo and the truck itself from financial loss. As a commercial truck driver, it’s important to be aware of the different types of insurance requirements and ensure your trucking business is properly insured.

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