Insurance is a critical asset that protects the trucker, the small business providing trucking services, and their clients in case of a calamity. The Federal Motor Carrier Safety Administration (FMCSA) mandates commercial truckers to obtain specific insurance before legally operating a truck. They will need primary liability, general liability, and more.
Truckers’ insurance mitigates the risks that truckers and trucking companies face in the different processes involved in safely transporting goods. The type of insurance required will vary depending on the type of truck, cargo, and a few other factors.
Different Types of Truckers’ Insurance Policies
Here is a list of several commercial insurance coverages available for commercial truck drivers:
Primary Liability Coverage
This federally mandated coverage protects the trucker and the public in a truck accident where the trucker is at fault. It covers injury to the driver or any other party. It also covers damages to public property and truck-related expenses.
FMCSA defines coverage limits between $300,000 and $5,000,000 that motor carriers and freight forwarders must carry depending on the type of freight.
This is the most basic coverage required by all states for carriers and fleets operating in the U.S. General liability insurance protects trucking companies from litigation emanating from damages caused to customers and customers’ property while performing day-to-day operations.
This coverage comes into effect when the truck driver travels between assignments or goes home after a drop-off. It does not cover you while hauling a trailer or another load.
This type of insurance covers your truck or trailer if it gets damaged in a natural disaster, fire, theft, accident, or vandalism. It covers repair or replacement costs of the vehicle, but it will not cover damage to the cargo or the driver’s personal items.
Uninsured or Underinsured Motorists
This insurance provides coverage if another uninsured motorist hits you and doesn’t have sufficient insurance to cover your damages.
Motor Truck Cargo
This type of insurance provides coverage for any losses or damage to the goods that the trucker is transporting. From the moment the cargo enters the possession of the trucking company to when it’s safely transported to its destination, the condition of the goods is the company’s responsibility.
If damage does occur during transit, the cargo insurance may cover the loss if the cause of damage is not excluded from the policy.
Trailer Interchange Agreement Liability
This covers physical damages from events, such as theft, vandalism, fire, or explosion, caused to a non-owned trailer that you pull under the interchange agreement.
Reefer Breakdown Coverage
This policy is geared towards refrigerated trucks and covers incidents like lost cargo, refrigerated cargo spoilage, collision, refrigerator breakdown, and more.
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The Benefits of Trucking Insurance
When transporting goods across hundreds and thousands of miles, there is always a risk of accidents damaging the truck, the truck driver, other people, or property. The damages can prove very expensive to a trucking company or a trucker.
Saves You Money in the Long Run
Having sufficient insurance can shield the trucker and the company from the heavy financial burden of resolving claims and lawsuits. While insurance policies are an added expense, the benefits of insurance significantly outweigh the costs in the long run.
Federal and State Regulatory Compliance
Every trucker and trucking company must follow federal and state-specific insurance requirements. Since trucks often carry hazardous materials, heavy loads, and other high-cost products, much more is at stake if things go wrong.
This is why primary liability and general liability coverage and other policies are required from all trucking companies.
It Protects the Trucking Company
If a trucker gets into an accident while en route to deliver goods, the insurance will help pay for medical injuries, income loss, property damage, and other losses of the victim and the company. If the trucking company were to try to foot the bill out of pocket, it might lead to bankruptcy. This is because the expenses from truck accident lawsuits can be exorbitant.
It Protects the Truckers
Having the right coverage will also help you give your employees protection while on the road. After an accident, the coverage can pay for their medical expenses and other damages. This way, the driver sticks with your company and continues to work without feeling suffocated by the financial burden of the accident.
It Protects the Cargo
Trucks may carry goods reaching millions of dollars in value. Having coverage means you will not have to pay out of pocket if the goods are damaged or stolen.
Our Firm Can Help You After a Truck Accident—Pursue Compensation
Trucking companies face many expensive challenges. Proper insurance coverage ensures that mistakes do not become an irreparable liability that could destroy trucking companies, employee morale, and customer relationships.
Our truck accident lawyers can help you secure damages after a truck accident. Perhaps a car sped around you and cut you off on the highway. You could file a claim or sue them for damages. Isaacs and Isaacs Personal Injury Lawyers can take on your case. We will even deal with the insurance company.