Trucking Insurance – Required 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.
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.
Even if the transporting company does not carry their merchandise over state borders, their home state will have specific insurance laws that they will need to follow. Companies should contact an insurance agent who has experience with trucking insurance to make sure that they have the appropriate coverage.
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.
Companies should be sure that they are meeting the requirements of the FMCSA, their home state, and the companies they are transporting for. This will help them to not get any fines or tickets or be at unnecessary financial risk.
If there are any concerns or questions about the type and amount of coverage that is needed, contact an insurance broker. Brokers have experience with trucking insurance and since they work with dozens of insurance providers will also be able to find the best purchase price for the insurance policy needed.
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