March 20, 2023
Trucking companies are required by law to purchase Auto Liability or Truck Liability Insurance. This insurance provides protection for the motor carrier for legal liability arising out of the ownership, maintenance, and use of any insured automobile. The minimum limit that can be purchased is $750,000 combined single limit per state and federal regulations (BMC-91 or BMC-91X). We encourage all clients to strongly consider purchasing $1 million in coverage as it is a common requirement from freight brokerages and shippers. It also affords better protection to the motor carrier as a single accident can produce claims well exceeding either of these totals.
The FMCSA BMC-91/91X requires that motors carriers who transport certain hazardous cargo maintain a total of $5 million in auto liability coverages in those instances. It is also common and good practice for all motor carriers to consider purchasing excess or umbrella policies to properly address their risk.
In addition there are numerous other lines to consider based on how you run your operation. It may be necessary to purchase HNO (Hired & Non-Owned) in the event that you do not actually own the vehicles or have them titled to your company. Non-Owned coverage can also provide protection for employee utilization of personal vehicles while for purposes of the company.
Trailer Interchange Liability Insurance and Non-Owned Trailer Coverage is another important coverage option to consider if you are pulling trailers that are not owned by your company.