Semi trucks, also known as tractor trailers or 18-wheelers, carry a considerable amount of weight when loaded. Not surprisingly, the more weight a vehicle carries, the more damage can result should an accident occur. As most semi trucks perform commercial activities, certain insurance requirements exist for businesses and individuals who operate semi trucks on a regular basis.
Commercial Truck Insurance
The design of a semi truck makes it ideal for carrying large quantities of freight across long distances. Semi trucks come in a range of sizes for different purposes, but typically fall within one of three categories or classes. Depending on the actual weight of the truck, a semi will fall within either Class A, B or C, where Class A trucks carry the most weight. Commercial truck insurance requirements exist on both federal and state levels, with federal requirements governing trucks that travel cross-country on a regular basis. Commercial truck insurance can provide different types of protection, some of which include bodily injury, property damage and freight damage. Truck insurance also helps protect businesses from potential lawsuits.
Primary Liability Insurance
State and federal regulations require drivers and/or businesses to carry primary liability insurance coverage for semi trucks. Primary insurance covers any injuries or damages caused by an accident. By law, semi trucks have minimum coverage requirements based on weight and type of freight hauled, according to the Truckers Insurance Group website (See link in the Reference section). This form of coverage also provides protection across state lines. The cost for primary liability insurance protection will vary depending on the type of freight hauled, the driver's driving record and the condition and age of the truck.
Motor Truck Cargo Insurance
Motor truck cargo insurance specifically covers any damages or losses involving freight or cargo contained inside a semi truck. Requirements for motor truck cargo insurance can vary depending on whether a business requires it for their trucks. Business owners also determine whatever coverage limits seem necessary for the type of freight involved. Another type of insurance known as non-trucking liability provides cargo and overall liability protection for off-duty trucks, such as when a driver takes a truck home. Owner-operators may want to consider non-trucking liability coverage, depending on whether the businesses they work with provide it or not.
ICC/MC Authority Requirements
Two federal agencies -- known as the Interstate Commerce Commission and the Motor Carrier Authority -- require anyone operating a commercial semi truck to obtain an ICC/MC authority, or licensing. ICC and MC authority requirements apply for drivers who carry regulated freight across state lines. In order to obtain these licenses, drivers must carry minimum amounts of liability coverage based on the type of cargo hauled and the weight of the truck, according to the Truckers Insurance Group. For semi trucks weighing 10,000 pounds or more, trucks carrying hazardous materials must have a minimum of $1 million in liability insurance, while trucks carrying explosives must have a minimum of $5 million in coverage. Trucks carrying general commodities follow the $750,000 coverage requirement for primary liability insurance. Semi trucks weighing less than 10,000 pounds have a $300,000 minimum coverage requirement for general commodities and a $5 million coverage requirement for explosives and hazardous materials.
