Types of Commercial Coverage

Primary Liability

Primary liability is usually the most expensive portion of any trucking company's insurance package. This protects you from damage or injuries to other people as a result of truck accidents. Primary liability coverage is mandated by the State and Federal agencies, which require proof of insurance documents to be sent to them.

Interstate truckers will need the MCS 90, the BMC 91x and the appropriate state form endorsements, which extend coverage to the regulatory agencies.

Policy limits for trucks over 10,000 pounds gross vehicle weight will generally have a required limit of $750,000. This limit is set by the FMCSA on interstate travel and is usually matched by the various states.

Physical Damage

Physical damage policies provide actual cash value protection to an insured's equipment in the event of an accident. This coverage applies to cases of fire, theft and vandalism of the insured equipment. The total coverage is based on the type of equipment and the year of its purchase. Equipment valuation is usually based on the commercial blue book equipment value guides.

Cargo Insurance

Cargo insurance is designed to protect the cargo owner's financial interests while the cargo is exposed to potential damage while in transit. The type and value of the cargo affects the insurance premiums paid, in addition to a number of other factors such as the time sensitivity of the load, the potential for theft and the impact of changes in temperature. Some commodities are more susceptible to certain perils than others. The underwriter when determining a rate for cargo insurance considers all of these factors. Many times insurance companies place exclusions in cargo policies because of the loss record of certain commodities. Be sure to ask about exclusions.

The policy is purchased with a maximum load limit per vehicle. This insurance policy, without question, requires careful thought and evaluation prior to purchasing. In addition, you need to be constantly evaluating your loads to make sure the coverage meets your needs. The state and federal regulations only require a minimum amount of cargo coverage; however, most brokers and shippers will generally require a much higher amount. This amount is usually $100,000 or greater.

FreightGuard Spot Cargo Insurance Program

Shippers, freight brokers and freight forwarders use FreightGuard to provide insurance protection on cargo in transit. For high value freight, they cannot rely on traditional cargo policies that contain numerous exclusions and claim conditions. Often times, settlement is based on weight. Pennies on the pound.

FreightGuard's Insurance Policy is a significantly broader form of coverage, which is in the name of the party who actually owns the cargo. When a claim occurs, you don't have to prove who was responsible for the damage or theft - only that it took place during the insured transit.

General Liability

General Liability policies pertain to very broad coverage other than automobile. This coverage provides protection for injuries or property damage sustained while on your premises, using your products or services, or because of a breach of contract.

Policy limits usually start at $100,000, with the usual policy limits of $1,000,000 per occurrence and a policy aggregate of $2,000,000. Higher limits are available as needed.

Non-Trucking Liability Insurance

Non-Trucking Liability provides limited liability insurance for owner-operators who are permanently leased to a federally regulated carrier. It provides limited liability protection when the owner-operator is not on dispatch or pulling a loaded trailer. When the owner-operator is under dispatch they are covered under the Primary Liability insurance policy of the company that they are leased to.

Occupational Accident Insurance

Occupational Accident insurance coverage provides the owner-operator with medical benefits and disability coverage due to a work-related accident, injury, or death. It is not purchased in lieu of Workman's Compensation, but only when Workman's Compensation is not available in the specific state or not required by law.