It is a legal requirement for trucking companies to purchase Liability Coverage. It covers damages done to another party due to an accident you’re responsible for. It also covers an injured person’s medical bills or repairs to someone’s vehicle. The minimum limit that can be purchased is $750,000 combined single limit per state and federal regulations. Freight brokers and shippers usually require $1 million in coverage. It also offers better protection to the motor carrier as a single accident can produce claims well exceeding either of these totals. For motor carriers who transport hazardous cargo, the FMCSA requires a total of $5 million in Auto Liability.
Why do you need it?
First of all, it is required by Law!
You might be the best driver on the road, but you still have to contend with other drivers you’re sharing the road with. This coverage helps pay for the cost of lawsuits, property damage, medical bills, and other expenses arising from an accident.