Insurance Coverage for New Authorities
Starting your own trucking business and obtaining your own operating authority from the Federal Motor Carrier Safety Administration (FMCSA) can be an exciting venture. However, one of the most significant expenses that trucking business owners face is insurance. Adequate insurance coverage is essential for protecting your business, your assets, and your employees in the event of an accident or injury. In this blog post, we'll discuss the types of insurance coverage new authority owners need and how to find the best coverage and rates for your business.
Types of Insurance Coverage for New Authorities
The most common types of insurance coverage for trucking businesses include primary liability insurance, physical damage insurance, cargo insurance, and bobtail insurance.
Primary Liability Insurance Primary liability insurance covers damage to other people's property or bodily injury caused by you or your driver while operating the truck. This coverage is mandatory and required by law for all motor carriers. The cost of primary liability insurance can range from $3,000 to $5,000 per year, depending on your driving record, the type of cargo you're hauling, and the value of your equipment.
Physical Damage Insurance
Physical damage insurance covers damage to your own truck in the event of an accident, theft, or vandalism. This coverage is optional but highly recommended for all new authority owners. The cost of physical damage insurance can range from $1,500 to $3,000 per year, depending on the age and value of your equipment.
Cargo insurance protects against damage or theft of the cargo you're hauling. This coverage is mandatory for motor carriers and can vary in cost depending on the type of cargo and coverage limits. The cost of cargo insurance can range from $1,500 to $3,000 per year.
Bobtail insurance covers you when you're driving your truck without a trailer attached. This coverage is optional but may be required by some motor carriers. The cost of bobtail insurance can range from $1,000 to $2,000 per year, depending on your driving record and the type of truck you're driving.
Finding the Best Coverage and Rates for Your Business
Aside from the types of coverage you need, other factors that can affect the cost of insurance for your new authority in trucking include the type of trucking you do, your driving record, the value of your equipment, the amount of coverage you need, and your location. To find the best coverage and rates for your business, it's important to do your research and work with a knowledgeable insurance agent.
When shopping for insurance, consider getting quotes from multiple insurance companies. This can help you compare coverage options and rates to find the best fit for your business. Working with a knowledgeable insurance agent who understands the trucking industry can also be helpful in navigating the complex world of trucking insurance and finding the best options for your specific needs.
Obtaining your own operating authority for your trucking business is an exciting venture, but it comes with significant responsibilities, including obtaining adequate insurance coverage. The types of insurance coverage you need as a new authority owner include primary liability insurance, physical damage insurance, cargo insurance, and bobtail insurance. To find the best coverage and rates for your business, it's important to shop around, compare quotes, and work with a knowledgeable insurance agent who can help you navigate the complex world of trucking insurance. With adequate insurance coverage, you can protect your business, your assets, and your employees and operate your trucking business with peace of mind.
Insurance for New Authorities with CarrierHQ
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