The commercial trucking industry has seen a lot of change lately, especially when it comes to innovation and tech in the actual trucks being used. Companies like Tesla are producing electric, self-driving semi-trucks that are partnering with the likes of UPS and FedEx, and the industry as a whole is looking for ways to attract younger truck drivers.
With all this change, there’s a lot to keep up with like shifts in what’s being hauled, who’s behind the wheel, and the tech driving the trucks. But before change can be made, it’s essential to make sure everything is lined up in the way of insurance coverage. There may be some confusion when it comes to truck insurance, but the FAQ’s below can help clear things up.
What is the difference between primary liability and secondary liability?
Primary liability coverage acts as protection for the general public while truck drivers are on the road. This coverage is required by FMCSA (Federal Motor Carrier Safety Administration) to obtain one’s own authority. Secondary liability coverage is required by a motor carrier and only covers drivers while under a permanent signed lease.
What kind of coverage is needed for tags?
Coverage for tags would be primary liability coverage, just as above. If a truck driver is running under his or her own authority, they should have this kind of coverage in their own name. Primary liability coverage can also be given through a motor carrier if the truck is being leased.
Can a truck driving operator have their own primary liability coverage?
If a truck driver wants to have their own coverage while leasing under a motor carrier, the FMSCA requires the motor carrier to obtain coverage. In this case, individual truck drivers can be charged by the motor carrier for this policy. It’s a good rule of thumb to review any lease agreements carefully.
How much does minimum coverage cost?
FMSCA requires $750,000 primary liability coverage. Sometimes shippers and brokers require $1,000,000 minimum coverage to load. All this depends on what is being hauled, and in an age where electronics are becoming more popular, this kind of coverage could go up.
Is physical damage coverage really needed?
Absolutely. This kind of coverage is an essential investment as it covers a variety of exposures to the physical truck itself. Everything from collision to fire, theft, and vandalism are covered.
What are the necessary filings?
In commercial auto insurance, filings are a form of evidence that the operation has enough liability insurance to meet state and federal requirements. They can also be referred to as “financial proof of responsibility”.
Federal filings are typically required for trucking operations that travel across state lines, do long haul or regional trucking, engage in intrastate trucking, or are transporting nonexempt commodities across state lines. State filings, on the other hand, are for trucks transporting exempt commodities within the state. The requirements vary depending on the state, so trucking operations should make sure that they know their state’s regulations.
About Genesee General
At Genesee General, we strive to provide quality insurance solutions for the transportation sector. Our longstanding expertise and aggressive claims management have allowed us to successfully serve your clients for over three decades. Our specialized package includes Trucker General Liability, Cargo, fleet and non-fleet, physical damage, Bobtail Liability, excess coverage, and many more. For more information about our products, we invite you to contact us today at (800) 282- 8755.