Variances in Truck Insurance Requirements

There is a great variety of services offered by transportation companies, and these variances will affect the amount of Truck Insurance coverage that is required. However federal law requires that all transportation companies carry appropriate levels of Public Liability Insurance coverage. This will provide public bodily injury and property damage protection in the event of an accident.
What is being transported by the commercial vehicle will be a big component when determining the amount of Public Liability Insurance coverage that is needed. Passenger vehicles will need to have as much as $5 million of coverage based upon the number of people that are being transported. Likewise freight trucks need anywhere from $750,000 to $5 million depending on the cargo that is being hauled.
For added financial security, transportation companies should increase the type of insurance coverage that they have on their basic insurance policy. One beneficial addition would be cargo coverage. This will pay for damages and losses of the cargo being transported up to the specified amount in the truck insurance policy.
If the transportation company is hauling any hazardous materials then they will need to file a Hazardous Materials Registration Statement. To continue to transport such goods this statement must be maintained and kept current.
The first 18 months that a transportation company is in business, the Federal Motor Carrier Safety Association or FMCSA will audit a couple of their business aspects. This will include the evaluation of driver qualifications, driver duty status, testing for alcohol and controlled substance use, accident registration, and vehicle maintenance.
For transportation companies that choose to not comply with the requirements of the FMCSA there are dire consequences. The FMCSA has the right to take away the company's trucking authority and in some situations may deem the company as out of service or inactive.
Transportation companies will be in violation of federal regulations if they continue to do business after they have been categorized as out of service or inactive by the FMCSA. Consequences of such behavior place the company and driver at risk of fines, suspensions, detention, and civil or criminal charges.