The volume and nature of the freight that commercial trucks haul require protection on the part of the trucking provider. Because road accidents and other unfortunate transport incidents are possible, having insurance safeguards truck owners from damages and gives customers peace of mind in knowing that their cargo will be delivered in pristine condition.
When a client hires your trucking company to move their items, they are trusting you with their source of income. Freight that is compromised while in transit could damage their business. Having owner-operator insurance guarantees that their profit-makers are safe in case of an accident, while also protecting you from paying for the damage from your reserves.
But what are the basic commercial truck insurance requirements? This article discusses the standard owner operator insurance requirements in the US. Let’s begin.
Common Commercial Truck Insurance Requirements
Having commercial trucking insurance is required by law, regardless if you are a private carrier or an owner-operator. The list of insurance requirements is not that long, but you do have to fulfill each one to continue running your business. Here are the most essential requirements.
Commercial Driver’s License (CDL)
Truck drivers are required to have an active CDL to operate commercial trucks. This license is awarded only to professional drivers who pass a series of exams administered by the state in relation to the type of vehicle they are operating. When you apply for commercial truck insurance, you need to submit a list that details your truck drivers’ names, licenses, types of vehicles driven, and other relevant information for the insurance provider to customize a truck insurance policy that works best for your business.
This means your MC and DOT numbers are updated and active. If you are hauling items interstate or are working for-hire to move someone else’s property, you need an MC number. However, if your trucking company also operates intrastate and hauls owned construction equipment and property, you need a DOT number. Both numbers are regulated by the Federal Motor Carrier Safety Administration (FMCSA).
Commercial trucking insurance companies may require you to submit your IFTA report for the past years, if applicable. IFTA, or the International Fuel Tax Agreement, is the joint agreement between US states and 10 Canadian provinces that enables the use of a single fuel tax license for inter-jurisdictional carriers.
Other owner-operator insurance requirements are sought on a conditional basis, depending on the size of your trucking company, the number of commercial truck drivers on your staff, your location coverage, type of cargo, and other factors.
Now that you know the basic commercial truck insurance requirements, the next step is to find the right insurance partner to rely on when challenges arise.
Protect You and Your Customers’ Assets With a Commercial Truck Insurance from Insura
There are three major types of coverage for commercial trucks in Ohio: Motor Truck Cargo Insurance, Motor Truck General Liability Coverage, and Non-Trucking Liability Coverage. Comprehensive truck insurance is not cheap, and for good reason. It covers the damage to your vehicle, the cost of the goods that were compromised, medical bills for bodily injury, property damage costs, and more. The rates for these plans vary depending on the provider and type of insurance that you acquire.
The ideal commercial truck insurance program has you and your customers’ best interests in mind when it comes to safety, protection, and finances. Insura’s team of commercial insurance specialists is committed to customizing a comprehensive plan that meets your goals and needs. Contact us today to learn more about protecting your trucking business.