Trucks are an essential part of most businesses. In fact, according to American Trucking Association, in 2016, 3.4 million heavy duty trucks carried more than 70% of the entire United States’ freight. This means that trucks not only help transport tones of goods every year but also help employ millions of people. Because, so much is dependent on trucks, they have to be insured. The Motor Carrier Insurance covers all the liabilities to goods inside the trucks, as well as any damage or loss of property.
Even though truck insurance can be quite expensive, it is necessary. When a customer gives you a load to haul, they are trusting your company. The customer needs that load to reach its final destination in the best possible condition because it typically represents their profits. Damaged goods could lead to one less customer for you as well. To avoid that, a trucking company needs to fulfill several motor carrier insurance requirements and only then it will be completely ready for a trucking job. Let’s take a look at these.
Public Liability Insurance
The public liability insurance is perhaps the most common type of insurance that your truck needs. This insurance covers accidents when you or your driver is responsible for an accident, resulting in damage to some else’s life or property. However, not one size fits all. As trucks get bigger, they need a greater insurance coverage. For instance:
- An Interstate General Freight carrier requires a minimum of $750,000 worth of Public Liability Insurance
- A private carrier of oil requires a minimum of $1000, 000 worth of Public Liability Insurance.
- A private carrier for other hazardous material require a minimum of $5000, 000 worth of Public Liability Insurance.
Since liability insurance covers both property and bodily damage, if another driver or pedestrian has hospital bills as a result of an accident caused by a trucker, the liability policy addresses their bills.
If your company delivers goods, you must get the Cargo Insurance for your trucks. This insurance covers the property in transit and reimburses the customers in case of any damage. While Cargo Insurance may be an option for some, if you are transporting household good across states, it becomes a requirement by the federal law.
Occupational Accident Insurance- OAI
Occupational Accident Insurance or OAI is designed to deal with unplanned or accidental occurrences arising out of or in connection of work and resulting in one or more than one person’s injury, illness or even death. This is similar to the workers compensation claims, however the major difference is that it is much more affordable as employers can choose the coverage amounts and deductibles of the plan.
Non- Trucking liability Insurance – NTL
The NTL provides coverage when a truck is used for non-business related purposes. In this case, NTL ensures liability coverage for third party property damage and bodily injuries. This insurance fills out the gap left by public liability insurance as it protects the owner in almost all cases. All things considered, it is absolutely necessary for a trucking company to insure its vehicles to protect themselves from any future risks. Don’t know where to start from? Let Stuttgart Insurance Solutions assist you. Our experts have knowledge and experience with trucking insurance coverages in California and will help you through the process. Contact us today to get started.