For many people, the dream of becoming a long-haul truck driver is one of personal freedom and new adventures. But before you hit the open roads, you’ll need to make sure you have the right insurance policy that fits your needs
After you have gone through the step of creating your company and purchasing your equipment, it’s now time to focus on getting an insurance policy for your equipment and company. You can read more in our article Getting Started in the Trucking Industry to see all the steps you will need to take to properly set up your trucking business.
Minimum insurance requirements
Through their regulation, the FMCSA (Federal Motor Carrier Safety Administration) requires specific insurance coverage. Commercial auto liability insurance is a primary requirement, with coverage amounts varying based on the type of goods transported.
- Non-Hazardous Cargo: $750,000
- Hazardous Cargo: $1,000,000
- Portable Tanks: $5,000,000
Cargo insurance is mandatory for working with brokers and shippers.
You will need to submit various forms to the FMCSA through your insurance company to obtain an MC number, such as:
- BMC-91 - public liability insurance.
- BOC-3 - processing agents.
- MCS-90 - endorsement that creates an obligation to pay any judgment resulting from negligence of operations.
Understanding and complying with FMCSA truck insurance requirements is important for legal and safe operation in the trucking industry.
Additional insurances
Here is a list of various types of insurance that you will likely also be interested in having.
Motor Truck Cargo Insurance: Covers non-hazardous freight or commodity and liability for cargo carried by the insured truck.
Motor Truck General Liability Insurance: Protects motor carriers or for-hire truckers in claims for bodily injury, personal injury, property damage liability, advertising injury liability, medical payments, product & completed operations, and seven days or less coverage for damage to rented properties.
Non-Trucking Liability Insurance: Provides coverage for the use of a truck for non-business purposes when using your truck on days off.
Mechanical Breakdown Insurance: Offers coverage for out-of-pocket expenses related to repairs of the insured vehicle.
On-Hook Coverage: Provides coverage for vehicles that are not owned by your business during towing or hauling.
Optional Downtime Coverage: Takes effect when your commercial truck undergoes downtime, such as during repairs or maintenance.
Passenger Accident Insurance: Provides coverage for the driver if a truck accident occurs while an uninsured passenger is in the vehicle.
Physical Damage Coverage: Protects your commercial vehicle when physical damage occurs, including damage from accidents, vandalism, and other perils.
Bobtail Insurance: Provides protection for a tractor when it is operated without a trailer, whether under dispatch or not. This can often be confused with Non-Trucking Liability Insurance, which covers your vehicle when you are using it for personal use.
Limited Depreciation Coverage: This policy helps cover the gap between the fair market value that the insurance will likely pay out and what you owe on the vehicle or the cost to replace the vehicle.
Trailer Interchange Agreement Insurance: Provides coverage for damage to non-owned trailers when they receive physical damage while under a trailer interchange agreement.
When entering the trucking industry, it is a requirement to purchase insurance to work with brokers and to protect you from unexpected factors. While the minimums have been set by FMCSA and brokerage companies, you will likely want to purchase more coverage depending on your operations. Having only the minimums in place may not be enough to fully protect you, so discuss this with your insurance company.
Investing in an appropriate policy can save you money in the long run and provide peace of mind while on the road.