Auto Liability and Cargo insurance are the most important coverages required to run under your own authority. However, many brokers and shippers may have other requirements in their contracts.

You need primary liability coverage. If you are running under your own authority, you should have this coverage in your name. If you are leased to a Motor carrier, then you should have this coverage through them.

Auto Liability and Cargo insurance are the most important coverages required to run under your own authority. Other coverage’s may be required in your contract(s) with your brokers and shippers

On one side, the FMCSA only requires $750K primary liability coverage, but most shippers/brokers will require 1,000,000 to assign a load to you. The most common request for Cargo is $100,000 yet the amount may vary based on depend on the cargo that has to be hauled and the shipper you are hauling for

The best savings are achieved by only paying for what you need. Two key factors: work with a trusted agent. They can guide you and help you get what you need and not pay for extras you don’t. Then, it’s a matter of doing your due diligence, to operate your business in the best way possible to remain loss free. When talking to your agent, be transparent about your operation and your records. Agents are expert and they can make sure that your premium is adjusted so you pay less, but you still have the coverage you need. Also, consider the service you want to receive. Lower rates provided by big companies might mean your only option is online service and you never talk to an agent. If a company can’t provide good timely service, you may be in trouble when you need help. Also, a lower premium may not be helpful to get loads with good shippers.

What is Bobtail Liability/ Unladen Liability— these terms to apply to liability coverage for an owner/operator while the truck is not being used for the purpose of transporting cargo ( eg: after a load has been delivered and the owner/operator is driving back home). This may happen to owners operating under the authority of a carrier and whose liability policy is effective only while they are engaged in transporting goods for the carrier. Bobtail liability is a business auto policy (BAP). The difference between Primary Liability and secondary is that Primary liability coverage is protection for the public, required by FMCSA to obtain your own authority. Secondary liability coverage is required by motor carriers and only covers the driver and rig while under a permanent signed lease with them. Bobtail applies, as describe before, when driving an empty truck. For more details, talk to an agent.

If the primary auto liability is in your name or that of your corporation and you are the owner of the truck, you would not be required to carry bobtail liability.

Admitted carriers are licensed and operate in particular states. Each state Division of Insurance regulates the activities of these carriers in their jurisdiction. Each DOI monitors the finances and market conduct of the admitted carrier companies, and more importantly, all admitted carriers contribute to a state fund – or guaranty fund – which is used to pay claims if any of these licensed insurers were to go insolvent, which is a safety net to make sure that that, ultimately, the insured will get their fair claims paid.

Haz Mat Insurance is a special kind that pays for site clean-up, in-transit accidents, contamination, loading, and unloading incidents, pollution clean-up, personal injury claims, medical payments, personal injury claims, and lost income or downtime should you have an incident when transporting Hazardous Materials. This is optional and it is only required when you engage in the transport of the kind of materials that is considered “hazardous” under state of federal laws. Consult with your insurance agent to verify when is this type of insurance needed.

General liability insurance mainly covers third-party claims for bodily injury, goods damage, and personal injury. It pays for medical expenses, settlements, and judgments arising from accidents, injuries, or alleged negligence to your business.

Any trucking business responsible for transporting goods should consider motor truck cargo insurance. It ensures financial recovery from potential cargo incidents, maintains client trust, and meets contractual obligations, all while complying with industry regulations.

Southwestern Insurance offers a range of insurance, including Commercial Trucking Insurance, cargo insurance, liability coverage, and more. Our policies can be tailored to your specific needs.