This section talks about carriers and the required coverage that a carrier needs to have. Here we'll also talk about some additional coverage options that carriers have to further protect themselves and their company.
1. Do you need authority? If yes, talk to our Authority Sales team www.dat.com/owner-operators/get-authority. These industry experts will teach you all you need to know about insurance providers and requirements.
2. If you have authority and are just looking for insurance, check ou Epic Insurance (epicbrokers.com) or Loadsure (loadsure.net). These are both trusted partners of DAT.
Below is some general information.
Carrier/Surface freight forwarder Policies
In recent history the FMCSA stopped requiring carriers to list their cargo insurance on the FMCSA website, however, carriers are still required to report their current Auto policy information commonly known as BIPD insurance.
If the Auto policy on record is set to cancel within 30 days, the carrier will be placed on a 30 Notice of Revocation. If the carrier fails to renew the policy before the cancellation date their authority will become inactive on the cancellation date specified.
All carriers are required to have commercial auto policy with a minimum limit of $750,000 on file with the FMCSA. Coverages available include auto liability, trailer interchange, and auto physical damage; other coverages are available by endorsement. This type of is appropriate for all types of motor carriers—for-hire, private, or a combination of both types of operations.
This type of coverage covers the legal liability of the carrier. This will only pay out if the carrier is liable for the damage, destruction, or other loss of the customer’s property being shipped. This includes lost packages, broken contents, and stolen articles.
While the FMCSA requires Household Goods Carriers and Freight Forwarders to carry cargo insurance, For-Hire carriers do not have to meet this requirement. However, most carriers will continue to carry cargo insurance because their customers (shippers) will require it.
What should Brokers/Shippers be aware of?
- General Liability - This type of trucking insurance covers the truck when it’s not on the road. General trucking liability insurance covers accidents in parking lots, rest stops, and while loading or unloading. It can also cover risks like theft, injury, slander and vandalism. These policies typically include coverage for the following:
- Bodily Injury and Property Damage Liability
- Personal Injury and Advertising Injury Liability
- Medical Payments
- Products/Completed Operations
- Damage to Property Rented to You
- Trailer Interchange - A type of coverage available under either the truckers or the motor carrier policy form that covers the insured's legal liability for damage to the trailers of others. Truckers frequently haul trailers that are owned by other truckers. This is often done through a "trade" of trailers that are in different locations to facilitate scheduling. A trailer interchange agreement makes the trucker who has possession of the trailer responsible for any damage to the trailer.
- Physical Damage - Automobile insurance coverage that insures against damage to the insured's own vehicle. Coverage is provided for perils such as collision, vandalism, fire, and theft.