What Kind of Insurance Do Truck Drivers Need

What Insurance Do Truck Drivers Need

Insurance is necessary for truckers and trucking businesses. The specific type of insurance will depend on the type of vehicle or cargo. We suggest staying in touch with your insurance broker so you can get the best benefits from each policy.

In order to operate legally, these entities need insurance. It is a federal requirement to have auto liability. This provides protection if a 3rd party is injured. 

Required insurance For Truck Drivers: 

  • Proof of liability insurance

This insurance is necessary for the Operating Authority/MC number application for the DOT and FMCSA. Under any safety inspection, you will be asked for proof of insurance.

Safety Assurance for Customers

Shippers want to trust you with freight, proof of liability insurance provides peace of mind. They don’t want damaged cargo or late deliveries to affect their business negatively. If an accident does occur, the shippers are protected by your liability insurance.

Safety Assurance for Yourself

Not only does insurance provide peace of mind for shippers, it protects you. If there is damage to your freight, vehicle, or driver, you won’t have to pay for it out of pocket. Insurance will cover the cost, and you can continue running your business. These insurances protect you from the high costs of potential lawsuits. Also, you will qualify for leases and contracts as long as you have insurance and shippers will want to work with you. 

What Insurance Do Truck Drivers Need to Operate?

Required:

  • Public liability insurance 
  • Cargo insurance 
  • Surety Bond/Trust Fund Agreement 
  • Service of Process Agents 
  • Endorsement for Motor Carrier Policies of Insurance for Public Liability 

 

Overview: 

    • Public liability insurance

You need this for physical injury or property damage that was caused by your truck. Not only does it cover the driver, it covers third parties who may have been injured. Also, if you damage public property, it will cover that as well. Normally this insurance covers between $750,000 and $5,000,000. 

    • Cargo insurance 

This is for damage to the freight itself, including employee mistakes, Customs problems, theft, etc… You are required by FMCSA to get cargo coverage of $5,000/vehicle and $10,000/occurrence.  

    • Surety Bond/Trust Fund Agreement. 

This is needed for drivers. Coverage of $75,000.

    • Service of Process Agents

This is a representative who you can designate/may have to pay for who will be responsible for court papers that may be served in a proceeding against an entity. 

 

Additional insurance considerations for yourself

These may not be required but they are there to protect you when things inevitably go wrong.

  • Health insurance 
  • Disability insurance 

Insurance may seem like a hassle to obtain, however, insurance protects you. If you have any questions, feel free to contact Truck Dispatch 360  at (404)-987-6225.

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