TRUCK Auto Liability Coverage Is Required By Law! Are You Covered?
Don't get confused by the word "auto" in this type of policy. If you own a trucking company, or are an independent truck driver, you must have a commercial auto liability policy.
Auto Liability Insurance 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 will cover Bodily Injury and Property Damage Liability claims by an injured third party as a result of the operation of a motor vehicle.
Liability payouts are always to a third party
Most all Truckers policies today are written with $1,000,000 in Auto Liability coverage. The Federal minimum requirement is $750,000.
This Liability coverage can be extended to “Hired” or rented power units by adding the endorsement “Hired and Non-Owned”.
This is the coverage needed in order for the insurance carrier to provide an MCS-90 “filing” with the Federal Motor Carrier Service Association (FMCSA) on their website. “Filings” guarantee to the Federal government that your Auto Liability coverage is in fact in full force and effect, so that the public is protected. When filings are in place on your behalf, the insurance carrier guarantees to the FMCSA that they will be notified if the Auto Liability coverages are cancelled for any reason. These filings allow you to operate in an “Active” status with the FMCSA.
Also a part of this area of coverage is Uninsured and Underinsured coverage. This 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.