Insurance is a crucial part of any trucking operation. As a truck driver or trucking business owner, it’s important to have the right type of insurance to protect yourself and your cargo. At Dispatch Union, we recommend working closely with your insurance broker to make sure you have the right coverage for your needs.
Federal law requires truckers and trucking businesses to have auto liability insurance. This type of insurance provides protection if a third party is injured in an accident. But liability insurance isn’t the only type of insurance you need to operate legally and protect your business.
Required Trucking Insurance:
- Public liability insurance: This covers physical injury or property damage caused by your truck, including third parties who may have been injured. It’s required by law and typically covers between $750,000 and $5,000,000.
- Cargo insurance: This covers damage to the freight itself, including theft, customs problems, and employee mistakes. The FMCSA requires cargo coverage of $5,000 per vehicle and $10,000 per occurrence.
- Surety Bond/Trust Fund Agreement: This is required for drivers, with coverage of $75,000.
- Service of Process Agents: This is a representative who can be designated to be responsible for court papers that may be served in a proceeding against an entity.
- Endorsement for Motor Carrier Policies of Insurance for Public Liability.
Having the right insurance not only protects your business, but also provides peace of mind to shippers who want to trust you with their freight. With liability and cargo insurance, you won’t have to pay for damages out of pocket. And if an accident does occur, your liability insurance protects shippers from financial losses.
Additional Trucking Insurance Considerations:
While not required, additional insurance can protect you from unexpected events. Consider adding these policies to your coverage:
- Health insurance
- Disability insurance
Don’t let the hassle of obtaining insurance deter you from protecting your business. At Dispatch Union, we can help you navigate the complexities of trucking insurance. Contact us at +224 635 0725 If you have any questions.