When running a trucking company, there are certain steps you need to take to mitigate risks. Even when you carefully train and vet the drivers for your fleet, accidents can still happen. Trucking insurance provides the coverage you need, allowing you greater peace of mind down the road.
What to Know About Commercial Trucking Insurance
Commercial trucking insurance is a type of coverage that protects your trucking company and your drivers against potential financial losses. It’s much like auto insurance policies for passenger vehicles with a premium that is paid on the policy while the insurance provider covers expenses that arise from damage or loss. However, the stakes are higher, which means these policies cover much higher amounts.
The level of this coverage will depend on the particular policy. At the very minimum, all truck drivers must get the basic coverage required to protect them in the event of an accident. With so much at stake, there are additional policies you can add depending on your needs that can cover even more.
It’s a smart idea to review the different types of coverage you can get beyond the required minimums. You need to shield yourself as truck accidents can cause extensive and expensive damages.
What Are the Trucking Company Insurance Requirements?
The Federal Motor Carrier Safety Administration (FMCSA) requires all trucking companies to have valid insurance coverage in place for their vehicles before any trucks from that fleet hit the road. There are specific requirements for insurance for those with a CDL, and complying with them is the best way to avoid penalties and fines.
One of the most important requirements is that each truck driver must have an active CDL to operate the vehicle. Purchasing insurance coverage is the next step as you will not be granted operating authority without it. This coverage must meet the minimum limits set by the FMCSA, which has specifications on minimums based on the type of freight hauled.
While the federal regulations are something you must obey, don’t forget to check your local state laws to see if there are any additional requirements. The requirements for commercial truck insurance are fairly consistent nationwide, but you do not want to miss a requirement from your state, which could wind up being costly.
Why Trucking Insurance Is Considered a Business Essential
If you look at any kind of insurance, it is meant to shield you from unexpected financial losses. In other words, it’s like an umbrella on a rainy day, keeping you protected and reducing your stress. Trucking insurance is the same, though on a grander scale. You could have massive financial losses without this coverage.
Not only will the FMCSA not permit you to operate without it, but you also won’t have the coverage you need in the event of an accident. There is nothing that fully eliminates risk, but resources like insurance are the closest you can get to reducing it.
Liability insurance is legally required on the federal level, but there are other insurance options you can add on for a more comprehensive policy to have better peace of mind while growing your business.
