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Auto Liability
Auto liability insurance for truckers is a crucial coverage that protects drivers and trucking companies from financial losses due to accidents where they are found legally responsible. Here are the key aspects:
1. What Auto Liability Covers:
• Bodily Injury Liability – Covers medical expenses, lost wages, and legal costs if the trucker is at fault in an accident that injures others.
• Property Damage Liability – Pays for damage to other people’s property (vehicles, buildings, infrastructure) caused by the trucker.
• Legal Defense – Covers attorney fees and court costs in case of a lawsuit.
2. Minimum Coverage Requirements:
The Federal Motor Carrier Safety Administration (FMCSA) sets minimum liability limits for commercial trucks based on the type of cargo transported:
• $750,000 – For general freight (minimum required by FMCSA)
• $1,000,000 – For oil transport
• $5,000,000 – For hazardous materials (HAZMAT)
3. Who Needs It?
• Owner-operators with their own authority
• Motor carriers
• Leased operators (depending on lease agreement)
4. Factors Affecting Cost:
• Driving record
• Type of cargo
• Number of trucks in the fleet
• Operating states
• Coverage limits
For more information, feel free to reach out to us.
Cargo Insurance
Cargo insurance for truckers protects the value of the freight being transported in case of loss, damage, or theft. Here’s what it typically covers:
1. What Cargo Insurance Covers:
• Theft – If cargo is stolen during transit or while parked.
• Damage – Covers damage from accidents, fire, collisions, or overturns.
• Weather-related losses – Protection against natural disasters like floods, storms, or lightning.
• Loading & Unloading Incidents – Covers cargo that gets damaged during loading or unloading.
• Refrigeration Breakdown (Reefer Coverage) – Covers losses due to refrigeration unit failure, which is critical for perishable goods.
• Acts of God – Some policies may cover losses from unexpected events like earthquakes or tornadoes.
2. What Cargo Insurance Does NOT Cover:
• Improper packaging – If the shipper didn’t package the goods correctly.
• Cargo abandonment – If the driver leaves the load unattended for too long.
• Inherent vice – Damage due to the natural decay of perishable goods.
• Contraband or illegal goods – No coverage for unauthorized shipments.
• Employee dishonesty – Theft by the driver or trucking company employees may not be covered unless specifically added.
3. Who Needs Cargo Insurance?
• Owner-operators – Especially those under their own authority.
• Motor carriers – Required by many shippers and brokers.
• Freight brokers – May require coverage depending on contracts.
4. Coverage Limits & Costs:
• Coverage typically ranges from $50,000 to $500,000, with some specialized freight requiring higher limits.
• Cost depends on cargo type, coverage limits, deductible, and risk factors.
Do you need guidance on choosing the right policy for your freight type?
Contact us.
Physical Damage
hysical Damage Coverage for Truckers
Physical Damage insurance helps truckers cover repair or replacement costs for their truck and trailer if they’re damaged in an accident or other covered event. Unlike auto liability (which covers damages to others), this coverage protects the trucker’s own equipment.
1. What It Covers:
Physical Damage insurance is typically divided into two main types:
• Collision Coverage – Pays for repairs or replacement if your truck is damaged in an accident, regardless of fault.
• Comprehensive Coverage (Other-than-Collision) – Covers damage from theft, fire, vandalism, storms, falling objects, animal strikes, and other non-collision events.
2. Additional Coverages (Optional Enhancements):
• Gap Coverage – Covers the difference between the truck’s loan balance and its market value if totaled.
• Towing & Storage – Pays for towing and storage after an accident.
• Fire & Theft with CAC (Combined Additional Coverage) – A more limited option that covers fire, theft, and certain other risks but not collision.
• Downtime or Rental Reimbursement – Helps cover lost income or temporary truck rentals while your truck is being repaired.
• Equipment Coverage – Protects installed equipment like electronic logging devices (ELDs), headache racks, and other accessories.
3. Who Needs Physical Damage Coverage?
• Owner-operators with financed or leased trucks – Lenders often require this coverage.
• Truck owners wanting to protect their investment – Even if the truck is paid off, repairs can be costly.
• Leased owner-operators – Depending on the lease agreement, you may need to carry your own coverage.
4. Cost Factors:
Premiums are based on:
• Truck’s value – Higher-value trucks cost more to insure.
• Deductibles – Higher deductibles lower the premium but increase out-of-pocket costs.
• Driving record – A clean record can mean lower rates.
• Operating radius – Long-haul trucking may have higher premiums than local routes.
Would you like help comparing coverage options for your specific trucking operation?
give us a call: (908)845-7722
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