Liability Requirements for Trucking Insurance
Federal and State governments mandate that trucking companies have coverage in their trucking insurance policy for public liability for bodily injury, property damage and environmental restoration. The amount of public liability insurance required will vary from company to company depending on the type of operation.
The amount of public liability insurance coverage that a company must have depends on the truck’s GVW and type of cargo. Trucks weighing less than 10,000 pounds need to have at least $300,000 of coverage, and trucks over 10,000 GVW require $750,000. If the company is transporting a liquid hazardous material, such as gasoline, then the minimal limit is $5,000,000.
The company’s base state may also have specific insurance requirements that need to be followed, even if the company does not do interstate transports. It is a wise idea to contact an insurance agent that knows the laws in regards to trucking insurance coverage before you purchase a policy. Then you can ensure that you have the types and amounts of coverage that are required.
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.
A filing with the FMCSA will be made by the insurance provider, not agent, after the company has purchased an insurance policy. Within 20 days an insurance filing must be made for authority with the FMCSA on trucks that are being leased or owned.
Understanding what is required by the FMCSA, state law, and the company whose goods are being transported, should be a top priority. By doing so getting quotes for coverage and ultimately purchasing a trucking insurance policy can be done with confidence.
Contact an insurance broker with any questions or concerns. Brokers have experience determining the type and amount of trucking insurance coverage that transportation companies need.
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