Primary Liability Coverage

Legally required while on the road, this coverage must be carried at a minimum set by FMSCA. Primary liability covers injuries and losses to the third party such as other drivers, property of others and environmental damages. The minimum is $750,000 combined single limit. However the most common coverage that freight brokers require to carry is $1,000,000 combined single limit. Risky material Haulers such as gas and chemical haulers are required to carry $5,000,000 in primary liability coverage. Primary liability is the most important segment of any trucking insurance policy.

General Liability Coverage

Covers injuries and property damages as a result of business activity not related to truck operations. This coverage is usually suitable for truck for hire operations. This coverage can provide coverage for liable and slander, errors and omissions, loading and unloading using mechanical device such as forklift, negligent hiring and when the insured gets sued as a result of business activities not directly related to trucking operations. Here are the main components of General Liability coverage:

Bodily injury and property damage not resulted from trucking operation
Personal and advertising injury (Liable and slander)
Medical Payments
Damages to rented premises

Motor Truck Cargo (MTC) Coverage

Covers against damages and losses to customer’s property while in insured’s care, custody and control. MTC coverage can also cover customer’s property when store in insured warehouse. MTC coverage is not required by law however most freight broker require minimum $25,000 coverage.

Physical Damage Coverage

Covers the insureds own truck against damages. It provides collision coverage which covers the cost of repair or replace insureds vehicle when involved in a collision. It also covers Comprehensive Coverage which covers damages other than Collison such as fire, theft and vandalism. When the vehicle is leased or financed, this coverage is mandatory by the owner (usually the bank) to protect against physical damages to the collateral (the truck). To obtain physical damage coverage, insured must choose a deductible which vary from $1000 and up. Insured is also required to select stated value which is the current value of truck minus depreciation.

Bobtail Insurance Coverage

Covers the semi-truck and the insured when is not attached to a trailer and not hauling a load. Bobtail insurance covers when the Tractor (truck head) that’s in move without its tail (trailer).

Trailer Interchange Coverage

Covers physical damage to trailers attached to insureds truck and its transported under a trailer interchange agreement. It provides coverage against trailer damage such as Collison, fire, explosion, theft and vandalism. Trailer interchange coverage is required when insured is hauling a third party trailer.

Medical Payments Coverage

covers medical payments such as ambulance transportation to the hospital for insured, employee drivers and its passengers.

Uninsured/underinsured Coverage

Covers the insured for injuries that caused by a third party at fault who is uninsured or underinsured.

Trucking Workers Compensation Insurance

Workers compensation insurance is a mandatory coverage and is required by law in the United States. Every trucking company must obtain Worker compensation insurance before operating any truck. This coverage protects truckers against occupational diseases, medical payments, rehabilitation costs, lost wages, death, and more. At American Fleet Trucking insurance, we customize each workers comp insurance to budget, size of the fleet, number of drivers and payroll.