WHAT IS LIABILITY COVERAGE?

It is insurance coverage that trucking companies must purchase, as required by state and federal agencies. Its purpose is to protect the carrier in the event that a traffic accident causes property damage or injury to other people.

AUTO LIABILITY

HOW MUCH ARE IT’S LIMITS?

The policy limit required by the FMSCA (Federal Motor Carrier Safety
Administration) is $ 750,000 USD, however, we suggest you purchase
coverage for $ 1,000,000 USD since this amount is often required by
providers and freight forwarders.

COVERAGE PROVIDED BY THE AUTO LIABILITY POLICY

Personal injury coverage
In the event that a truck is involved in an accident, this policy covers the
following aspects:

– Hospitalization expenses.
– Physical therapies.
– Long-term medical care.
– Funeral expenses.
– Loss of profits.
– Pain and suffering.

AUTO LIABILITY
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PROPERTY DAMAGE COVERAGE

This coverage protects the trucking company by paying repair costs in
the event that one of its vehicles causes an accident that results in
damage to the property of a third party. Additionally, it covers legal
defense expenses if the affected party files a lawsuit against th e
company.

IN ADDITION TO BEING REQUIRED BY LAW, WHY SHOULD YOU PURCHASE CIVIL LIABILITY COVERAGE?

It is certainly an expensive coverage, however, it provides ben efits to
transport companies by protecting themselves from significant lo sses,
taking into account that an accident can cause a claim that exceeds the
actual amount of the policy, and having this coverage can absorb part of
loss and minimize total costs when an accident occurs.

WHAT IF HAZARDOUS MATERIALS ARE BEING TRANSPORTED? (HAZMAT)

The FMCSA requires that transportation companies that handle
dangerous cargo purchase Auto Liability coverage for $ 5,000,000.
Remember that, to operate in the industry, you must comply with
federal permits BMC91 / 91X.

IT ALSO CONSIDERS THAT:

Depending on your operation, you must estimate additional aspects of
the policy, for example, in the event that a vehicle is not owned by your
company (provided that you are using a trailer that is not your own or
that is not titled to your company) , you must obtain HNO coverage
(Hired & Non-Owned – Contracted not own).

Are you looking for the best way to protect your company from any of the above risks? We can advise you. Send a
message to the email truckingsales@skholl.com or request a quote here

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