Flatbed insurance needs must be carefully evaluated based on an assessment of all risks associated with a particular trucking operation. Flatbed trailers are open deck and the cargo can be completely exposed to the elements unless a tarp is required. Drivers may sometimes participate in the loading, unloading, chaining, strapping, and/or tarping. It is important to understand the risk associated with this and evaluate what worker’s compensation coverage might be necessary. Additionally, it is also essential to understand the risk environment for third-party personnel who may assist in these activities. Many flatbed trucking companies will also purchase general liability insurance.
Trucker’s liability insurance also referred to as auto liability coverage is typically the most costly portion of insurance for a commercial trucking company. This coverage helps to protect the motor carrier from liability arising from property damage or injuries caused by a driver to a third-party. This type of policy can be issued on a scheduled or blanket basis. It is most common for smaller trucking companies to be scheduled with larger fleets using a blanket or any auto coverage.
Truck insurance is designed for motor carriers and can be designed with multiple coverages in mind including: truck liability insurance, cargo, general liability, and worker’s compensation. There is also specialty coverage options that can include things like bobtail insurance, non-trucking liability (NTL), and breakdown coverage.
Motor carrier insurance applies to varying types of coverage for trucking companies. The most common type of insurance coverages include: auto liability, general liability, motor truck cargo insurance, and physical damage. Auto liability is a mandatory coverage.
The Federal Motor Carrier Safety Administration (FMCSA) is an agency within the US Department of Transportation that regulates the trucking industry in the United States. The mission of the FMCSA is to reduce crashes, injuries, and fatalities. The FMCSA regulates motor carriers (common and contract), freight forwarder and freight brokers from a compliance and insurance standpoint.
MCS 90 insurance is typically used to reference motor carrier insurance required under Sections 29 and 30 of the Motor Carrier Act of 1980. MCA 90 is an endorsement on a commercial automobile policy or an umbrella policy issued to a trucking company. This endorsement establishes proof of compliance with federal trucking regulations from FMCSA.
Motor truck cargo insurance typically referred to just as ‘Cargo’ provides insurance on freight transported by a for-hire motor carrier. It covers the trucker’s liability for cargo. The coverage is not federally mandated, but is almost universally required by shippers in order to transact business. The coverage will pay when the trucking company is responsible for damage or loss of the cargo due to a covered peril such as fire or collision. The coverage offers protection to the trucking company.
Physical damage coverage is insurance for a commercial truck and trailer. It provides coverage for physical damage to a truck that resulted from things like collision, fire or explosion, windstorm, hail, flooding, theft, vandalism, etc. Physical damage can include either comprehensive or specific coverage so it’s important to understand the differences and choose an appropriate coverage. You have multiple options on your physical damage deductible such as $1000, $2500, and $5000 deductible levels for commercial trucking. This coverage is a must for motor carriers.
General liability or motor truck general liability insurance pays for property damage or injuries caused as a result of activities that are non-truck related activities. This is not always required by law, but is an extremely common coverage purchased to protect trucking companies beyond the course of operating a motor vehicle.
Auto or commercial liability insurance helps protect companies from property damage or injuries suffered by a third-party that were caused by an employee in an insured vehicle. This type of insurance is mandatory for all for-hire trucking companies or motor carriers. This is also required for freight forwarders as well.
