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Auto Liability Insurance

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Auto Liability Insurance

Auto liability insurance, also known as truck liability insurance, is a legal requirement for trucking companies. It provides crucial protection for motor carriers against legal liabilities arising from the ownership, maintenance, and use of insured vehicles. While state and federal regulations (BMC-91 or BMC-91X) mandate a minimum coverage limit of $750,000, many freight brokerages and shippers often require a higher coverage limit of $1 million. This higher limit not only fulfills these requirements but also offers enhanced protection, as a single accident can result in claims exceeding these amounts.

Benefits of Auto Liability Insurance

The primary benefit of auto liability insurance is the financial protection it provides against potential claims and lawsuits. It covers both property damage and bodily injuries, ensuring peace of mind for trucking business owners.

Benefits of Auto Liability Insurance
The primary benefit of auto liability insurance is the financial protection it provides against potential claims and lawsuits. It covers both property damage and bodily injuries, ensuring peace of mind for trucking business owners.

Features of Auto Liability Insurance
In addition to basic coverage for owned vehicles, auto liability insurance extends to employees' personal vehicles used for company purposes. It also includes Trailer Interchange Liability Insurance and Non-Owned Trailer Coverage, which are essential if your operations involve pulling trailers not owned by your company.

Additional Considerations for Trucking Insurance
For those transporting specific hazardous cargo, the FMCSA BMC-91/91X mandates up to $5 million in auto liability coverage. It is also advisable for all motor carriers to consider purchasing excess or umbrella policies for comprehensive risk management. Depending on your business model, you might also need HNO (Hired & Non-Owned) coverage, especially if you do not own or have vehicles titled to your company.

Importance of Risk Management in the Trucking Industry
Effective risk management goes beyond just purchasing insurance; it involves strategically planning to mitigate potential threats to your business. Incorporating trucking insurance into your risk management strategy is a crucial step in safeguarding your operations.

Auto liability insurance is more than just a legal obligation; it is a strategic investment in the safety and financial health of your trucking business. For a deeper understanding and tailored advice, reach out to Reliance Partners today.

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