Large Truck FMCSA Insurance Requirements

The Federal Motor Carrier Safety Administration (FMCSA) of the United States Department of Transportation (DOT) exists to make the roads as safe as possible for everyone, including the general public. Working with federal and state enforcement, the FMCSA sets forth regulations to ensure commercial motor vehicle safety compliance. 

Standard auto insurance does not provide coverage for commercial motor vehicles. Filing specific legal and insurance documents are prerequisite to obtaining Operating Authority, which is to legally operate a commercial trucking company in the United States. 

Financial Responsibility for Commercial Trucking

Commercial trucking owners and operators must understand that while insurance is indeed a cost, it is also a financial responsibility and investment.

FMCSA insurance requirements incentivize the trucking industry as a whole to maximize safety. These requirements have been set forth not only to protect commercial trucking businesses, but also to protect the general public in the event of an accident. The FMCSA is concerned with both accident prevention and compensation; its legal and insurance regulations are designed to prevent accidents as well as prepare adequate compensation in the event that accidents do occur. 

Compliance to FMCSA insurance requirements proactively ensures there to be sufficient financial resources to provide compensation in the event of loss, damage, or injuries. This is considered the financial responsibility of operating commercial motor vehicles.

Large Truck Insurance Requirements

The FMCSA classifies a large truck as a commercial motor vehicle that has a gross vehicle weight rating of over 10,000 pounds, such as semi-trucks and interstate vehicles. The gross vehicle weight rating (GVWR) is the maximum weight limit of a vehicle including the vehicle itself and everything and everyone in it, as recommended by the manufacturer

The FMCSA requirement for liability insurance for large trucks ranges between $750,000 and $5,000,000. Cargo insurance of $5000 per vehicle is required for motor carriers or freight forwarders of household goods.

It is important to understand that FMCSA insurance requirements are minimums to comply with; many businesses carry coverage beyond FMCSA insurance requirements to comply with laws that differ among individual states and to address and mitigate risks that are specific to their business. Large trucks carry different risk profiles than other types of commercial vehicles given their weight and size, as well as the nature of the cargo being shipped. Even if a certain type of coverage is not legally required, it is beneficial to carry coverage that has been uniquely optimized for your business to lower your financial burden in the event of loss or damage. 

Commercial Trucking Insurance Advisor 

Insurance is an investment that financially protects your business from losses that could otherwise destroy the viability. Furthermore, a dedicated insurance provider will efficiently handle your claims so that you can keep your fleet on the roads with little to no downtime. 

Speak to a SWAN Insurance specialist to discover the best commercial trucking insurance coverage for your business. We help fleets of all sizes. Give us a call to get your questions answered today.

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