The Federal Motor Carrier Safety Administration (FMCSA) requires all motor carriers to have primary liability and cargo insurance in order for their drivers to operate under them. The purpose of the policy is to ensure other drivers on the road are not harmed by a truck driver's actions.
The following are some of the common commercial truck insurance policies:
In the trucking industry, general liability insurance covers third-party bodily injuries and property damage resulting from business activities unrelated to driving. General liability insurance is required by law for operators with authority, freight forwarders, and motor carriers. Moreover, certain types of truck drivers do not need to carry general liability insurance, including those who work under a lease.
Compared to general liability insurance, primary liability insurance covers third-party bodily injury and property damage caused by the truck of the company. This is essential coverage is something that all business owners should have in order to ensure they avoid costly lawsuits in case of an accident.
Non-trucking liability coverage offers you protection in case of property damage and bodily injury to a third party when using your truck for non-business purposes. In addition, it provides coverage to drivers who are under lease with a motor carrier.
Cargo insurance protects shippers from financial loss in case of damage or theft. In addition, with cargo insurance, goods are protected against potential losses during air, sea, and land transportation.
Wondering what insurance you need for a commercial truck? Check out Assured Standard’s article covering what kind of insurance is needed for commercial trucks.
Ora Price is a licensed insurance producer. Since she majored in Finance at the University of San Diego, she knows how to deal with both clients and insurance providers alike.