When Do You Need Different Levels of Liability Coverage?

Liability insurance, which covers damages done to other’s property and third-party injuries that you and your drivers are liable for, is required across the country. Different amounts exist not only for different circumstances, such as bobtailing or cargo damage but also for different types of cargo and different sizes of vehicles.

As a general rule, you need at least $300,000 trucking liability insurance for bodily injuries and property damage is required. But this is the amount of smaller trucks and general, nonreactive goods. Once you have a truck with a gross (or total) weight of at least 10,000 pounds, you’ll need a coverage limit of at least $750,000 and that increase as your loads shift from general commodities to hazardous materials, and then again for explosives and particularly hazardous materials.

The limit is the total amount per year your insurance company can help cover under specific incidents. For example, that total amount might go to one major claim or it might be split amongst several smaller claims and suits reach an aggregate amount equal to or less than your limit.

When should you increase your insurance of your own volition?

The government mandates certain levels of coverage so third-parties aren’t left without recourse in the event of an incident and having at least those minimums is required. But sometimes it’s profitable to have even more. This includes when you have invested significant amounts of capital into new trucks, such as new electric or automated trucks, or if you want to be a trusted contractor for government and corporate organizations that set higher limits in their contracts: having more than the minimum not only gives you access to clients who don’t negotiate, it makes you look more reliable. Go to J.E.B. Insurance Services, LLC to find more insurance strategies. We provide commercial truck insurance in the states of Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Illinois, Iowa & Nebraska.

David Ott

David Ott