Truck Insurance Requirements

The truck insurance requirements for trucking businesses will vary depending on the type of work that they do. Such transportation businesses are required to file for Public Liability Insurance coverage. For commercial vehicles or trucks weighing over 10,000 pounds bodily injury and property damage insurance must be kept current.

Public Liability Insurance covers environmental restoration along with bodily injury and property damage costs. Trucking companies that are transporting passengers will carry coverage as high as $5 million depending on the number of passengers being transported. Likewise the type of cargo transported by freight trucks will cause the coverage to vary from $750,000 to $5 million.

Transportation companies should add a number of types of coverage to their standard insurance policy to provide them with extra financial protection. One such example would be cargo insurance. This type of coverage will pay for damages and losses to the cargo up to a specified amount.

If there are hazardous materials being transported then a Hazardous Materials Registration Statement is required. Unified Carrier Registration applications are required for motor carriers and freight brokers.

The FMCSA, or Federal Motor Carrier Safety Association, will audit a couple of things during the transportation company’s first 18 months of operation. This includes driver qualifications and duty status, vehicle maintenance, accident registration, and controlled substances and alcohol use testing.

Compliance with the regulations of the FMCSA is vital. Failure to do so could result in the company losing their registration for trucking authority and make the company be classified as inactive or out of service.

Companies that are labeled as out of service or inactive but still continue to transport goods are in violation of federal law. Consequences of such behavior place the company and driver liable for suspensions, detention, fines, and even civil or criminal charges.