Types of commercial truck insurance coverage provided by Truck Insurance DOT
Primary liability typically is the most expensive portion of any trucking company's insurance package. This coverage protects truckers from damage or injuries to other people as a result of truck accidents. Primary liability coverage is mandated by the State and Federal agencies, which require proof of insurance documents to be sent to them. Interstate truckers will need the MCS 90, the BMC 91x and the appropriate state form endorsements, which extend coverage to the regulatory agencies.
Policy limits for trucks over 10,000 pounds gross vehicle weight will generally have a required limit of $750,000. This limit is set by the FMCSA on interstate travel and is usually matched by the various states.
Physical damage policies provide actual cash value protection to an insured's equipment in the event of an accident. This coverage applies to cases of fire, theft and vandalism of the insured equipment. The total coverage is based on the type of equipment and the year of its purchase. Equipment valuation is usually based on the commercial blue book equipment value guides.
Cargo insurance is designed to protect the cargo owner's financial interests while the cargo is exposed to potential damage while in transit. The type and value of the cargo affects the insurance premiums paid, in addition to a number of other factors such as the time sensitivity of the load, the potential for theft and the impact of changes in temperature. Some commodities are more susceptible to certain perils than others. The underwriter when determining a rate for cargo insurance considers all of these factors. Many times insurance companies place exclusions in cargo policies because of the loss record of certain commodities. Be sure to ask about exclusions.
The policy is purchased with a maximum load limit per vehicle. This insurance policy, without question, requires careful thought and evaluation prior to purchasing. In addition, you need to be constantly evaluating your loads to make sure the coverage meets your needs. The state and federal regulations only require a minimum amount of cargo coverage; however, most brokers and shippers will generally require a much higher amount. This amount is usually $100,000 or greater.
Trip transit cargo coverage is used when the motor carrier's cargo insurance does not have sufficient limits to cover a load for transport. It is generally purchased by the carrier or shipper for a single load and the deductible amount is equal to the amount of coverage of carrier's existing cargo policy. The price of spot cargo insurance is generally based on the type of commodity being hauled.
Non-Trucking Liability provides limited liability insurance for owner-operators who are permanently leased to a federally regulated carrier. It provides limited liability protection when the owner-operator is not on dispatch or pulling a loaded trailer. When the owner-operator is under dispatch they are covered under the Primary Liability insurance policy of the company that they are leased to.
General Liability policies pertain to very broad coverage other than automobile. This coverage provides protection for injuries or property damage sustained while on your premises, using your products or services, or because of a breach of contract.
Policy limits usually start at $100,000, with the usual policy limits of $1,000,000 per occurrence and a policy aggregate of $2,000,000. Higher limits are available as needed.
Workman's' compensation insurance covers injuries and occupational diseases picked up at work. Fault doesn't matter; employers are liable even if the employee may have contributed to the injury or illness. It is required in every state except Texas, and specifics vary from state to state.
Occupational Accident insurance coverage provides the owner-operator with medical benefits and disability coverage due to a work-related accident, injury, or death. It is not purchased in lieu of Workman's Compensation, but only when Workman's Compensation is not available in the specific state or not required by law.
