Trucking is a tough job and truckers are often driving long distances for long hours to deliver cargo on time. These long hours coupled with the complexity of handling heavy cargo, can sometimes get to even the best of truckers. Unfortunately, accidents happen even with proper planning and execution in place.
In the unfortunate case of an accident, truckers can be held liable for damages toward third parties for Bodily Injury or Property Damage, and this is where Auto Liability Coverage will play a vital role in claims against you.
What Is Truckers Auto Liability Coverage?
Auto liability is the base coverage in your trucker’s policy package and is also the most costly, since most of the risk is associated with this coverage. It responds to Bodily Injury and Property Damage Liability claims by injured or affected third parties if you are “at fault” for the operation of a commercial motor vehicle.
Truckers Auto liability payouts are always made to third parties and all trucking companies are required to have this coverage to operate. The Federal minimum liability limit requirement is $750,000, however almost all trucker policies today come with $1,000,000 in Auto Liability Coverage as most shippers require this level of coverage.
Federal Filings
Truckers Auto Liability coverage is needed in order for an insurance carrier to provide an MCS-90 “filing” with the Federal Motor Carrier Service Association (FMCSA). The “filing” is the insurance carrier’s guarantee to the Federal government that this particular coverage is in full force and effect, and the public is therefore protected.
Insurance carriers also guarantee to the FMCSA that they will be notified if this coverage is cancelled for any reason. These filings allow you to operate with an 'Active' status from the FMCSA.
All your “owned” or “operated” trucks will require a payment for this coverage on the policy regardless of whether or not a truck is plated and operating. Normally the only way to have an owned power unit deleted from the policy and filings, is through a Bill of Sale. All trucks taken out of storage, and on the road, will be automatically covered by the insurance carrier for any liability losses that may occur due to the filings that are in place. This is the reason that a premium is charged for any and all “owned” power units.
You can however remove Comprehensive, Collision, and Cargo coverage from any vehicle that you still own, but is not currently being used, without the need for a Bill of Sale.
Uninsured and Underinsured Coverage
Uninsured and Underinsured coverage provides coverage to you personally in the event of an accident where you suffer loss beyond your medical bills, and wish to sue for recovery due to loss of life, a dismemberment, or a disability, against the driver that was negligent in your accident, but was either uninsured or underinsured with no Auto Liability in place. An alarming percentage of drivers in Private Passenger Automobiles, in all states, are currently driving with no insurance at all in place.
Conclusion
Auto liability is a necessary coverage requirement for any trucking company that protects both the trucker and the general public.
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