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.
Truck lessors can build a more reputable reputation and attract more clients by providing comprehensive coverages, including:
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.
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!
Arthur started Assured Standard after seeing his sister struggle with finding insurance policies for her business. Thanks to his background in business administration, he knows exactly what small and big businesses need to keep operations running.