Automobile Liability
Navigating through the various insurance coverage options for trucking companies can be overwhelming, especially when it comes to understanding the terminology. It’s crucial to recognize that your existing insurance policy may not fully cover all parties involved in an accident. Additional coverage, such as automobile or truck liability insurance, is legally required, particularly for for-hire truckers or motor carriers. This specific coverage protects the driver responsible for causing injury or property damage to a third party. However, it’s important to note that it only covers the third-party group and not the driver. It is essential for the insured to also maintain primary liability coverage.
With this policy in place, the following coverages are provided:
- Medical payments
- Personal and advertising injury
- Products / completed operations
- Damage to premises rented by the policyholder
State and federal regulations mandate a minimum of $750,000.00 in automobile or truck liability coverage, but higher amounts may be necessary to meet the requirements of shippers and brokers and adequately protect against cargo damage. Opting for higher coverage ensures that all claim costs can be covered without unexpected expenses. Additional coverage scenarios encompass third-party injuries on your property, damage to rental property, incorrect product delivery, libel and slander, and injuries or damages caused by driver conduct during service. If your company transports hazardous materials, additional coverage is typically required, and excess or umbrella policies may be necessary for sufficient protection. Specific restrictions and exceptions vary by state and should be clarified with your broker.