Insurance
A carrier is required to obtain Liability and Cargo insurance. The FMCSA requires a carrier to have $750,000 primary liability and $100,000 in Cargo It is recommended that you obtain a $1,000,000-liability policy. Additional coverage is needed if you are hauling Hazardous Materials. Your Insurance provider must report your coverages to the FMCSA in order for your authority to go active. As with the BOC-3 filing, if you make any changes to your MC# information, you must also report that to your insurance company and have them re-submit the information to the FMCSA or you risk having your authority go inactive.
Liability insurance is a mandatory motor carrier insurance coverage that pays for damages you cause to other people and their property. Liability insurance coverages for motor carriers includes Bodily Injury insurance and Property Damage coverage.
Cargo insurance gives you the certainty that, if something should go wrong in transit, you will receive compensation of the value based on the commercial invoice. If there is no commercial invoice, the market value will be used to determine the amount. Transport costs will also be reimbursed.
Vicarious liability insurance protects you and your business from lawsuits resulting from mistakes caused by your employees, the independent contractors you’ve hired or agents that act on behalf of your small business.
Vicarious auto liability and umbrella: Brokers need vicarious auto liability insurance. If you are named in a lawsuit, your insurer will be in a position to defend you. If you are found liable, vicarious auto liability will cover you.
Truck drivers must obtain Liability and Cargo insurance to provide them with protection when a third-party becomes injured from an accident.
A shipper is not required to have an insurance policy. It is legal for a company to ship goods or commodities without a policy. A freighter is required to have carrier liability coverage—which is not to be confused with freight insurance.
First of all obtaining insurance makes a trucking company safer in terms of mitigating risks. Any subject will get compensation when the situation is concerned with the insurance case. Drivers and employees represent a company, general liability coverage also protects a business from any actions drivers might perform while at truck stops, leading docks, other people’s premises, and more.
We would like to offer you options where you are able to get Insurance for your trucking business.
Insurance broker. Ask them to help you to understand coverage needs and policy options.
Online insurance marketplace. Use an opportunity to search for insurance on your time — even outside of normal business hours.
Contact individual providers. You are able to avoid the intermediary and purchase your policy directly from an insurance provider. A provider may decide the way of getting a quote online or by phone.
Liability and cargo insurance forms must be submitted directly (online) by the home office of the insurance company furnishing the coverage. The FMCSA does not furnish copies of insurance forms. When you send an application form to the FMCSA you have to put the following information:
- Letter on the insurance company’s letterhead requesting a filer account
- Whether you will be filing BIPD, Cargo, Surety Bond or Trust Fund coverage
- Home office address of the insurance company
- Billing address, if that address is different from the home office address
- Name of a contact person with that insurance company
- Contact person’s telephone and fax numbers
- Billing contact person’s telephone and fax number if it is different than the home office contact person
- E-mail address of the contact person if available
- Preferred user name for the account (if any)
- Copy of the insurance company’s state license
- Subject line: “Insurance Filer Account Request”
REFFERRAL LINKS
Watch video below to get more info on Insurance
We suggest you watch the video. Where you will be told in more detail about Insurance. The video will help you understand how it works and why you need it.
