Commercial trucking and transportation operations are among the most heavily regulated and highest-risk businesses to insure. Federal and state regulations, high-value cargo, and the catastrophic potential of large vehicle accidents make proper insurance program design critical for every fleet owner.
Federal and State Filing Requirements
The Federal Motor Carrier Safety Administration (FMCSA) requires interstate carriers to maintain minimum levels of liability insurance and file proof of that insurance with the FMCSA before receiving operating authority. California adds additional state-level requirements through the CPUC for intrastate carriers.
Minimum federal filing requirements vary by cargo type:
- General freight: $750,000 minimum
- Household goods: $300,000 minimum
- Hazardous materials: $1,000,000 to $5,000,000 depending on the specific commodity
Most carriers and shippers require well above federal minimums — $1M to $2M is typical for general freight.
Core Coverages for Trucking Operations
Truckers Auto Liability: Covers bodily injury and property damage claims arising from accidents involving your vehicles. This is the primary liability coverage required by the FMCSA and is filed with your MCS-90 endorsement.
Motor Truck Cargo: Covers the freight you are hauling against loss or damage from fire, theft, collision, and other covered perils. Cargo coverage is distinct from liability — without it, you bear the full cost of damaged or lost freight.
Physical Damage: Covers your trucks and trailers against collision, fire, theft, and other perils. With tractors valued at $100,000 to $200,000 or more, this is a significant exposure for most fleets.
Non-Trucking Liability: Covers liability exposure when your truck is being used for personal, non-business use — outside the scope of your primary commercial auto policy.
Workers Compensation for Drivers
Owner-operators and company drivers are subject to significant occupational injury risk. Workers Compensation is required for all employees in California. Owner-operators working as independent contractors may use Occupational Accident insurance as an alternative, though the two are not equivalent in terms of coverage and benefits.
Work With Capital & Co
Capital & Co has experience working with trucking and transportation companies of all sizes — from single owner-operators to multi-truck fleets. We can help you structure a compliant and comprehensive insurance program.
Questions About Your Coverage?
Speak with Capital & Co about a strategy built for your business.
