Truck Liability Insurance
Coverage Defined in Easy Terms
This insurance is
the most expensive part of a truck company’s coverage. It is intended
to protect your against damages or injuries that are caused
to others from a truck accident. It is a mandatory insurance
coverage and a trucking
company is required to provide a proof to the State and Federal
agencies.
The truckers insurance is largely rated and is supplied to your company
based on a scheduled vehicle perspective and the drivers driving records
and nature of haul. During those times when a vehicle is not on the schedule,
there is no coverage given and therefore if you have few vehicles, this
coverage is not a problem. However, when you have a large fleet of trucks
and also there are many changes of the trucks, it may turn to be costly.
Some of the insurance coverage policies are written on gross returns
or mileage premium methods and therefore it is imperative that you choose
the best method that best suits your insurance needs. You need to know
the implications of each method and discuss any underlying issues with
your broker.
Your insurance broker should also be able to explain to you in depth,
what each policy method implies. This can help you reduce the overall
cost of truck liability insurance coverage. An increase in your shipment
prices increases the insurance premiums although the mileage may not change.
Therefore, you need to ascertain, which method can give your low premiums
while enhancing your transportation operations and revenues. There are
also various endorsements, which are provided as alternative insurance
coverage to the auto liability. Another liability policy which should
be considered is the pollution liability.
The Interstate truckers require the MCS90 and BMC91x and also the proper
State form endorsements that extend the insurance coverage to the regulatory
bodies and agencies. You can find more information and discussions on
State and Federal law requirements elsewhere in this page on the LICENSING
section.
Last but not least, the policy limit for operations with trucks totaling
to over 10,000 in gross vehicle weight is placed at a minimum limit of
$750,000 in auto liability coverage. This limit figure is set by the FHWA
on interstate travel and then it is matched by the various States to suit
their insurance policy frameworks.
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