December 16, 2017

Commercial Truck Insurance FAQ’s

Trucking Insurance Frequently Asked Questions

Primary Liability
Primary Liability Insurance coverage protects you form damage or injuries to others as a result of a truck collision.  This coverage is mandated by state and federal agencies and proof of coverage is required to be sent to them. We provide coverage limits ranging from $30,000 to $1,000,000. Pricing is dependent on region, driving records, and history of the trucking operation. For a more detailed description of this coverage please contact us.

 

Physical Damage
Physical Damage Insurance is coverage for your truck and trailer. This coverage is for repair or replacement for damage resulting from incidents such as a collision, fire, theft, hail, windstorm, earthquake, flood, mischief, or vandalism to your owned vehicles. Pricing is based on the value of your equipment and usually pays a percentage of that value. This coverage may be required by the lien holder of your vehicle.

 

Motor Truck Cargo
Motor Truck Cargo Insurance protects the transporter for his responsibility in the event of damage or lost freight.  The policy is purchase with a maximum load limit per vehicle. Coverage limits can range from $10,000 to $100,000 with excess policies available upon request. Pricing for this insurance is mainly dependent on the type of cargo being hauled.

 

Trailer Interchange
Trailer Interchange Insurance is coverage for the legal liability of trucks for loss or damage to non-owned trailers and equipment which are in the insureds possession under written Trailer interchange agreement.

 

Non-Trucking Liability
Non-Trucking Liability (Bobtail Coverage) provides limited liability insurance for owner-operators who are permanently leased to an ICC regulated carrier. It provides limited liability protection when the owner-operator ins not on dispatch, nor pulling a loaded trailer. For example, this coverage would apply when the owner-operator gets their truck washed or brings their trucks into a shop for repairs. Once the owner-operator is under dispatch, they are covered under the Primary Liability insurance policy of the company that they are leased to.

 

ICC Authority                                                                               <a
Interstate Operating Authority is permission granted by the federal government to transport regulated freight across state lines. Interstate Operating Authority is now granted by the Office of Motor Carrier Safety Administration under the auspices of the Federal Highway Authority. Unlike many of the other regulations governing interstate operation, there is no minimum weight threshold that requires compliance. Any vehicle operating for hire in interstate transportation of regulated freight or passengers must have operation authority.