Auto Liability

Auto Liability

Auto liability insurance, or truck liability insurance, is mandated by law for trucking companies. It serves as a shield, protecting motor carriers from legal liabilities stemming from the ownership, maintenance, and use of insured vehicles. While the minimum coverage limit set by state and federal regulations (BMC-91 or BMC-91X) is $750,000, many freight brokerages and shippers often require a higher coverage of $1 million. This higher limit not only meets these requirements but also offers enhanced protection, especially since a single accident can result in claims surpassing these amounts.

Benefits of Auto Liability Insurance

The primary advantage of this insurance is the financial safeguard it offers against potential claims and lawsuits. It covers both property damage and bodily injuries, ensuring peace of mind for trucking business owners.

Features of Auto Liability Insurance

Beyond the basic coverage for owned vehicles, this insurance extends to employees’ personal vehicles used for company purposes. Additionally, Trailer Interchange Liability Insurance and Non-Owned Trailer Coverage are vital if your operations involve pulling trailers not owned by your company.

Additional Considerations for Trucking Insurance

For those transporting specific hazardous cargo, the FMCSA BMC-91/91X mandates a whopping $5 million in auto liability coverage. It’s also a wise move for all motor carriers to think about purchasing excess or umbrella policies for comprehensive risk management. Depending on your business model, you might also need HNO (Hired & Non-Owned) coverage, especially if you don’t own or have the vehicles titled to your company.

Importance of Risk Management in the Trucking Industry

Risk management goes beyond just purchasing insurance. It’s about strategically planning to mitigate potential threats to your business. Incorporating trucking insurance into your risk management strategy is a step in the right direction.
Auto liability insurance is more than just a legal obligation; it’s a strategic investment in the safety and financial health of your trucking business. For a deeper understanding and tailored advice, reach out to Reliance Partners today.

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