Trucking Insurance and the Requirements for Liability Coverage

Interstate trucking companies are mandated to follow Federal and State governmental laws by having certain limits of coverage for bodily injury, property damage, and environmental restoration on their trucking insurance policy. The amounts of coverage that trucking companies are required to carry will depend on the type of operations that they perform.
The FMCSA requires trucks that weigh less than 10,000 pounds GVW have at least $300,000 of public liability coverage. Trucks weighing more than 10,000 GVW, which is the most common, need public liability coverage of $750,000. Liability coverage is increased to $1,000,000 if hazardous materials are being transported.
Additionally, there is a requirement for the cargo being carried to be insured for at least $5,000. But most companies having their merchandise transported require that the cargo is insured with $100,000 of cargo insurance coverage.
Whether or not the trucking company has interstate operations, their home state will have certain insurance laws that they will have to be followed in addition to the FMCSA regulations. Companies should contact an insurance agent who has experience working with trucking insurance to ensure that they have the proper amount of coverage.
The necessary forms will be filed with the FMCSA by the insurance provider, not agent, after the company has purchased an insurance policy. Within 20 days an insurance filing for authority with the FMCSA needs to be made for trucks that are being leased or currently owned.
Meeting what is required by the FMCSA, state law, and the company whose merchandise is being transported, should be a top priority to a trucking company. Doing so will enable the purchase of a trucking insurance policy to be made with confidence.
Any questions or concerns about the type and amount of coverage that is needed for the company's situation should be directed to an insurance broker. Brokers have experience with trucking insurance and because they work with numerous insurance providers they are also able to locate the best purchase price for the insurance policy needed.