Things to Know About Commercial Trucking Insurance
Commercial trucking insurance is essential for anyone operating trucks for business purposes, whether as an owner-operator or a large fleet manager. It protects against financial loss from accidents, cargo damage, and liability claims, while also ensuring compliance with federal and state regulations. All About Insurance provides commercial auto insurance and commercial trucking insurance in Spring, TX and surrounding areas.
These are key points to understand:
Types of Coverage
The most common is primary liability insurance, which covers bodily injury and property damage if your truck is at fault in an accident. Beyond that, physical damage coverage protects your truck against collision, theft, or vandalism. Cargo insurance safeguards the goods you haul, while bobtail and non-trucking liability cover trucks when not under dispatch.
Federal and State Requirements
The Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability coverage for interstate trucking, often starting at $750,000, but shippers and brokers may require higher limits. States may also impose additional requirements for intrastate operations.
Cost Factors
Premiums vary widely and depend on factors such as the type of cargo, driving history, routes traveled, vehicle type, and even the company’s safety record. New ventures and drivers with violations often face higher rates.
Certificates of Insurance
Most brokers and shippers require a certificate of insurance (COI) as proof of coverage before assigning loads. Having updated and accessible COIs is crucial for maintaining business relationships.
Risk Management
Insurers reward safe operations. Implementing safety programs, using GPS tracking, maintaining vehicles regularly, and hiring experienced drivers can lower premiums over time.
Working with Specialists
Commercial trucking insurance is complex. Working with an agent or broker who specializes in trucking ensures you understand exclusions, avoid gaps in coverage, and stay compliant.
In short, commercial trucking insurance is not one-size-fits-all. Understanding the types of coverage, compliance requirements, and cost drivers helps trucking businesses protect assets and operate responsibly. If you need assistance, we’re just a phone call away.