Trucking and Commercial Insurance

Trucking Insurance: Large trucks have their own insurance requirements. If the truck is engaged in interstate commerce, then federal law dictates the coverage minimums. At present, the minimum limit is $750,000.00 although most trucking policies have at least one million in limits. If the truck is not involved in interstate commerce, then state law imposes similar insurance requirements. Also, the trucking company cannot escape liability by claiming their drivers are independent contractors.

Federal law also requires an MCS-90 endorsement on the policy that affords coverage even if the insurance company has a valid policy defense. A judgment is required to trigger this endorsement. In some trucking policies there are variations in the coverage depending on how the truck is being used. Sometimes there is separate coverage that attaches to the trailer the truck is towing.

Commercial Auto Policies: Commercial vehicles other than large trucks are often covered under a commercial auto policy. These policies come in a variety of packages with a variety of coverages. The vehicles and drivers covered differ from policy to policy. The good news is most of these policies have at least a million dollar liability limit. The bad news is this limit is often per year, rather than per person or per collision.

The state proscribes minimum limits for some commercial vehicles, depending on their weight and use. If the vehicle falls under the state rules, then the minimum limits must be per person injured or per occurrence, not per policy period.