What Insurance Is Needed To Lease A Commercial Truck Onto A Carrier?

What Insurance Is Needed To Lease A Commercial Truck Onto A Carrier?
Written by: Amanda Johnson

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.

Commercial Truck Insurance

The following are some of the common commercial truck insurance policies:

General Liability Insurance

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.

Primary Liability Insurance

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 Insurance

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

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.

Frequently Asked Questions:

What is General Liability Insurance in the context of trucking?

General Liability Insurance covers third-party bodily injuries and property damage resulting from business activities unrelated to driving.

What is Primary Liability Insurance?

Primary Liability Insurance covers third-party bodily injury and property damage caused by the company's truck.

What is Non-Trucking Liability Insurance?

Non-Trucking Liability Insurance provides protection in case of property damage and bodily injury to a third party when using your truck for non-business purposes.

Who needs Non-Trucking Liability Insurance?

This type of insurance provides coverage to drivers who are under lease with a motor carrier.

What does Cargo Insurance cover?

Cargo Insurance protects shippers from financial loss in case of damage or theft 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.

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About the Author
Amanda Johnson
Amanda Johnson is a seasoned insurance and risk management expert with over a decade of experience in the industry. At Assured Standard, she specializes in providing insightful analyses and practical advice on commercial insurance solutions, helping businesses navigate the complexities of risk assessment and policy selection.
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