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If I Lease My Commercial Truck Out, What Are My Insurance Requirements?

If I Lease My Commercial Truck Out, What Are My Insurance Requirements?

Do you plan on leasing out your truck to operators and motor carriers? Keep in mind that you cannot require lessees to shoulder the insurance requirements. In most cases, commercial truck lessors are responsible for providing most of their lessee’s insurance needs. Truckers typically carry leased operator semi-insurance.

The Federal Motor Carrier Safety Administration (FMCSA) requires lessors to provide at least $750,000 to $1,000,000 of general liability insurance coverage. This amount should cover standard bodily and property damage. However, lessees have to shoulder the cargo insurance premiums — which would depend on the cargo hauled.

Insurance Requirements for Commercial Truck Lessors

Truck lessors can build a more reputable reputation and attract more clients by providing comprehensive coverages, including:

  • General Liability: General liability covers third-party property damage and bodily injuries stemming from accidents unrelated to truck driving. Some truckers don’t need general liability. However, it would be in your best interest as a truck lessor to cover a broad range of risks.
  • Primary Liability: Primary liability covers third-party property damage and bodily injuries caused while driving the leased truck.
  • Non-Trucking Liability Insurance: Non-trucking liability insurance covers third-party damage stemming from non-work-related accidents. Although most clients carry their own non-trucking liability policy, you should still familiarize yourself with this coverage.

Ensure that your lessor-lessee contract explicitly states the risks your policy does and doesn’t cover. Vague, ambiguous terms leave you prone to subjective contract interpretations. To ensure the safety of your lessees, guide them through the insurance requirements necessary on their part.

Also, keep in mind that insurance needs vary on a case-by-case basis. Some commercial truck lessors even go over the state-mandated coverages. Overall, strive for a comprehensive insurance policy that protects your business, leased trucks, and lessees from the specific risks they face daily.

Frequently Asked Questions:

What are the insurance requirements for leasing out a commercial truck?

The lessor is typically required to provide at least $750,000 to $1,000,000 in general liability coverage. The lessee is responsible for cargo insurance premiums.

What types of insurance should a lessor consider providing?

Lessor's insurance should include General Liability, Primary Liability, and Non-Trucking Liability to cover a wide range of risks.

Are there any additional insurance needs when leasing out a commercial truck?

The specific insurance needs can vary on a case-by-case basis. Some lessors may go above state-mandated coverages for comprehensive protection of their business, trucks, and lessees.

Are you planning on leasing from a motor carrier instead of building a private fleet? Assured Standard can guide you through the process! Check out our piece permanently leasing trucks from a motor carrier to learn more!

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Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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