Variances in Truck Insurance Coverage
The amount of Truck Insurance coverage required will vary from company to company. Federal regulations do require all transport companies to have Public Liability Insurance coverage. Commercial trucks weighing over 10,000 pounds must have bodily injury and property damage coverage.
Public Liability Insurance covers environmental restoration along with bodily injury and property damage costs. Trucking companies that are transporting passengers will carry coverage as high as $5 million depending on the number of passengers being transported. Likewise the type of cargo transported by freight trucks will cause the coverage to vary from $750,000 to $5 million.
Transportation companies should add a number of types of coverage to their standard insurance policy to provide them with extra financial protection. One such example would be cargo insurance. This type of coverage will pay for damages and losses to the cargo up to a specified amount.
If there are hazardous materials being transported then a Hazardous Materials Registration Statement is required. Unified Carrier Registration applications are required for motor carriers and freight brokers.
The FMCSA, or Federal Motor Carrier Safety Association, will audit a couple of things during the transportation company’s first 18 months of operation. This includes driver qualifications and duty status, vehicle maintenance, accident registration, and controlled substances and alcohol use testing.
Compliance with the regulations of the FMCSA is vital. Failure to do so could result in the company losing their registration for trucking authority and make the company be classified as inactive or out of service.
If a business is labeled as out of service by the FMCSA but still continues to transport they are in violation of federal regulations. Doing so will place the business and driver at risk for detention, suspensions, monetary fines, or even civil and criminal charges.
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