Liability Requirements For Trucking Insurance

Specific amounts of public liability limits for bodily injury, property damage, and environmental restorations are required by Federal and State law to be carried on a transportation company’s trucking insurance policy. The amount that they are required to carry will depend on their business operations.

The GVW of the truck is part of what determines the limit of public liability insurance that is required by the FMCSA. Trucks that have a GVW of less than 10,000 pounds must carry $300,000 of coverage, and if they are over 10,000 pounds then they need $750,000. If their trucks transport hazardous materials the requirements are raised to $1,000,000.

$5,000 of cargo insurance is also required. However, many companies that will have you transport their goods have their own requirement of at least $100,000 of cargo insurance.

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.

The insurance provider, not the agent, will file the necessary forms with the FMCSA after a policy has been purchased. The truck must be being leased or purchased to obtain authority from the FMCSA to make an insurance filing.

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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