Commercial Insurance Requirements
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Commercial Insurance
All commercial motor vehicle transportation companies are required to get a commercial auto insurance policy, which is a business insurance policy that applies to the motor vehicles owned and operated by the company. Therefore, the policy provides your company coverage from liability for damages or injuries involving company owned autos and provides compensation to occupants when found applicable and necessary.
An ideal commercial auto insurance policy that you would want for your trucking company should provide coverages from liability for at fault accidents, physical damage for any comprehensive or collision incidents, medical payments and compensation for injuries, cargo insurance, and UM/UIM coverage which is underinsured motorist or uninsured motorist; that is going to provide coverage for your company from liability when the expenses of damages exceeds the insurance coverage limits of the occupant that struck your vehicle. Although, commercial auto insurance is required by law for all motor vehicle transportation companies, obtaining an insurance policy with these coverages is essential to protecting your company from auto loss liability.
While the Federal standard for commercial insurance compliance requires a minimum of $750,000 in liability coverage, the industry standard for commercial insurance compliance requires $1,000,000 in liability coverage with an active cargo insurance policy in the amount of $100,000. Without $1,000,000 in liability coverage and an active cargo insurance policy at a minimum of $100,000, YOU WILL NOT BE ABLE TO HAUL FREIGHT, as no one passes out loads without these industry standards being in place on your commercial insurance policy.
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