Auto Liability ( Primary Liability)
The Most Prominent Fleet Coverage:
Liability. Two types of liability insurance exist: trucking liability and general liability. The trucking liability insurance provides protection when one of your commercial trucks is in an accident and others are hurt. This insurance will cover any type of reimbursement claims – whether physically injured individuals or a third-party property damage. General liability applies when there is an allegation against your company which is not related to the trucking process and activity of the enterprise. A familiar example for a case covered by the general liability is – someone walks into your office and slips on the wet floor, when there was no “wet floor” sign.
Good to know: The trucking liability insurance is commonly referred to as an “auto liability.”
What Is Commercial Auto Truck Insurance?
One shouldn’t be deceived by the word “auto” in this context. This insurance is a must for anyone who owns a commercial transportation company or is an independent contractor operating in the cargo transportation industry. In the event of damage to one of your trucks – whether due to bad weather or an accident – you can request coverage and will receive an appropriate reimbursement.
This specifically applies if one of your drivers is the cause of an accident and another person is hurt. When this person files a claim with the insurance company, the incident will be covered up to the limit of your insurance policy.
Once you receive your financial estimate, buy the insurance and your insurance agent will take care of the rest – mail the insurance files to the FMCSA, in order to prove your acquired vehicle liability insurance.
Note: Numerous industrial trucking companies and owner-operators prefer to purchase a commercial umbrella policy to ensure coverage of any wide-ranging liability claims which exceed the limits of the auto liability insurance. These plans offer much higher coverage limits – in $1 million increments, and provide reimbursement of the liability claims costs, as well as any lawsuit coverage, and secure your company from major financial disruptions.
Filing to Federal Motor Carrier Safety Administration (FMCSA)
Important: You are not legally allowed to run your trucking business nor to transport any goods until the filings are arranged.
How Much Coverage Can You Expect And What Is the Price of It?
This will be left for you to decide as there are generally no strict guidelines or requirements regarding your auto liability insurance. Many insurance companies offer just the minimum required amount by FMCSA – $750k, but most companies choose to have a $1million, for just a little extra cost. Nowadays most of the shipper and freight brokers do require at least a $1 million of trucking liability.
Costs will vary depending on the reimbursement amounts, as well as the deductible. Here applies the well-known proportional scheme – the lower the cost, the higher the deductible.
Our recommendation: Call or meet with a professional trucking insurance agent, who will know exactly which auto liability policy would be best-suited for your needs and have one specially tailored for you and your business. This way you will save tons of money and time!
Foresight Insurance can offer you the best commercial auto liability insurance at competitive prices. Our experts and professionals will guide you through your options and help you pick the best insurance policy. Give us a call today or fill out a form online.