Commercial Truck Insurance
It Typically Provides Coverage For Parties Listed On The Policy Are Insured Against Damages Or Losses Caused By Hazards Such As Fires, Storms, Hail, Lightning, High Winds, Vandalism, Contamination, Explosions And Collisions.
Commercial Truck insurance is tailored To specifically cover Many different kinds of trucks. Truckers often require specialized insurance coverage due to the unique risks associated with their profession. Here are some common types of trucker insurance:
Primary Liability
This is mandatory and covers damages or injuries to others in case the trucker is at fault in an accident.
Physical Damage
This covers damages to the truck itself, whether due to collision, theft, fire, or vandalism.
Cargo
Protects the goods being transported in case of damage or theft during transit.
General Liability
Provides coverage for third-party bodily injury and property damage claims.
Non-Trucking Liability Insurance
Covers the truck when it’s being used for non-business purposes, like personal use.
Trailer Interchange Insurance
Provides coverage for trailers being exchanged between different trucking companies.
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Truckers are the third largest motorist group using Nevada’s highways, after commuters and tourists. Trucking is different than driving around the city in a work van. Drivers often haul a large amount of merchandise or materials, across state lines, for long hours. The Federal Motor Carrier Safety Administration (FMCSA) — the governing body over trucking — requires certain insurance minimums needed by owners before their trucks can even hit the road.
Each applicant must file an application for operating authority for motor carrier, freight forwarder, and broker authorities. Each must have specific insurance and legal process agent documents on file before the FMCSA will issue the authorities. The required filings vary, based on the types of registrations involved. Below is a list of pre-registration forms, followed by an explanation of which types of registrants are subject to filing those forms.
Liability and cargo insurance forms must be submitted directly (online) by the home office of the insurance company furnishing the coverage. You will need provide the insurance agency which authority you will need.
Motor Carrier of Property (except Household Goods)
An authorized for-hire Motor Carrier that transports regulated commodities (except household goods) for the general public in exchange for payment. Motor Carriers of Property (except Household Goods) must file proof of public liability (bodily injury and property damage — BI & PD) with FMCSA in order to obtain interstate Operating Authority. Cargo insurance is not required.
Motor Carrier of Household Goods (Moving Companies)
An authorized for-hire Motor Carrier that transports only household goods for the general public in exchange for payment. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation charges. Motor Carriers of Household Goods must file proof of both public liability (BI & PD) and cargo insurance with FMCSA in order to obtain interstate Operating Authority.
Broker of Property (except Household Goods)
An individual, partnership, or corporation that receives payment for arranging the transportation of property (excluding household goods) belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the property and never takes possession of it.
Broker of Household Goods
An individual, partnership, or corporation that receives payment for arranging the transportation of household goods belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the household goods and never takes possession of the goods. Household goods are personal items and property that will be used in a home. An individual, partnership or corporation requires registration as a household goods broker if the motor carrier providing transportation will also provide some or all of the following additional services, binding and nonbinding estimates, inventorying, protective packing and unpacking of individual items at personal residences and loading and unloading at personal residences.
Freight Forwarder
A freight forwarder is a company that arranges the shipping and storage of stock on behalf of its clients. Freight forwarders provide a comprehensive range of services, including tracking onshore transport, warehousing, arranging cargo insurance, securing cargo space, working out freight charges, filling out shipping and export documentation and freight consolidation.
oTHER AUTHORITIES
- Motor Passenger Carrier Authority– commercial van operations and for-hire operators of small passenger-carrying vehicles that engage in interstate commerce.
- Non-North America-Domiciled Motor Carriers
- Mexico-based Carriers for Motor Carrier Authority to Operate Beyond U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border (Includes instructions and application in Spanish)
- Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers Under 49 U.S.C. 13902
What does the FMCSA do?
The FMCSA monitors and ensures compliance with regulations governing both safety (all carriers) and commerce (for-hire carriers). Companies may find they are subject to both registration requirements (USDOT Number and MC Number) or either one separately.
Applicants should be prepared to contact their agents to request filing of the required forms immediately after obtaining their designated docket number. Applicants are cautioned to ensure that the name and address of the business as set out in all pre-registration filings match exactly the name and address provided in their application for operating authority filings. Any deviation will result in rejection of the supplemental pre-registration filings.
The home office of the insurance company will file the Liability and cargo insurance forms to the FMCSA.
The type(s) of Operating Authority requested will impact the type and level of insurance that is required by FMCSA. Therefore, carefully select only the type(s) of Operating Authority relevant to the business and read the instructions before filing. Here are a few of the authority types for truckers:
About FMCSA
The FMCSA Safety and Fitness Electronic Records (SAFER) System offers company safety data and related services to industry and the public over the Internet.
Users can search FMCSA databases, register for a USDOT number, pay fines online, order company safety profiles, challenge FMCSA data using the DataQs system, access the Hazardous Material Route registry, obtain National Crash and Out of Service rates for Hazmat Permit Registration, get printable registration forms and find information about other FMCSA Information Systems.
commercial trucking coverages
Bodily injury liability coverage
pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
Property damage liability coverage
provides you with protection if your car accidentally damages another persons property. It also provides you with a legal defense.
Combined single limit (CSL)
Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
Medical payments, no-fault or Personal Injury Coverage
usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault.
Uninsured motorist coverage
pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
Comprehensive physical damage coverage
pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
Collision coverage
pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
Motor Truck Cargo Coverage
Keeps clients’ goods protected while your business transports and delivers them and provides insurance on the freight or commodity hauled by a For-hire trucker. It covers your liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load.
Bailee’s Customer Coverage
Protects clients’ property that is left in the care of your business; e.g., if you operate a warehouse or repair shop.
Builder’s Risk
Protects structures and materials during new construction projects or renovations.
Exhibition and Fine Art Coverage
Keeps valuable items protected while on exhibit, in transit or on loan.
Installation Floater
Covers materials from the moment they are loaded onto a truck until they are put to use or installed.
Cargo
Cargo – This type of coverage is especially important if you ship high-value products or materials, which are often excluded from basic property coverage. Inland marine insurance can cover a wide range of specialty equipment and products, including:
- Computers, everything from servers to laptops.
- Communications and networking equipment.
- Construction and contracting equipment.
- Medical and scientific equipment.
- Photography equipment.
ARE THERE WAYS TO LOWER YOUR TRUCKING PREMIUM?
Protecting your trucking business or yourself as a for-hire trucker means insuring yourself properly. Whether you need primary truck insurance or need to add general liability, insurance doesn’t have to be an extraordinary expenditure — and adding it to your business costs could help you survive the financial burden of an accident or disaster.
In any profession, here are some ways to get your commercial auto or trucking policy premium lower:
- Hire drivers with flawless driving records. Verify at https://www.dmvnv.com
- Always keep your payments current. Most carriers add late fees to late payments.
- Think safe driving first – a speeding ticket can be expensive for several years
- Implement and require safe driving classes for yourself and employees
- Once you have had you CDL for a certain period of time, you may be able to get a discount
how to Get your Trucking Authority
Running your own truck and being in charge can be exciting and downright hard. With so much competing information available on the internet, it is hard to keep track of all the steps you need to follow. Getting your own motor carrier authority also requires some start-up cash, a lot of digging for information, and a real hard-core Type A Mentality.
I have talked to a lot of truckers and they all sound winded trying to figure out how to get this dream started. I put this together after a little research. I have been told that the entire process can take anywhere from 3 weeks to 3 months.
Have at least 60 days of extra cash set aside to cover operating costs (fuel, repairs, etc.). If you’ve been an owner-operator for a while, you know it can take 30-45 days for an invoice to get paid. Be prepared by having operating cash on hand while you build up your business.
Set up your Business name, structure and get an ein
- What is your business name. See what is available by going to this website in the state of Nevada: https://www.nvsilverflume.gov/startBusiness
- Talk to an accountant to determine how you are going to organize your business to maximize your financial and operational success. I suggest calling Michele Eoff-Gomez of Nevada Financial Concepts. Telephone Michele at –702-292-1491.
- Research Limited Liability Companies, (LLC), C Corporations, S –Corporations, Partnerships, and Sole Proprietorships to make the right decision for your business.
- Michele can get you an EIN. If you want to do it yourself click here Get an EIN by visiting the Internal Revenue Website Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service (irs.gov). You will need an EIN for tax purposes related to your business.
What is a Filing?
When commercial drivers carry certain materials, the federal government requires them to show proof of financial responsibility. The document certifies the driver has liability and cargo insurance and carries the minimum coverage limits in their state. Federal and state agencies require filings to protect the public any damages from a motor vehicle used in a business.
The federal and state agencies make you aware of when you need the filings.
Your insurance agent will need to know whether you are required by the DOT to carry any state or federal filings to operate their business.
Authority is based on the cargo being carried, and some carriers need multiple authorities to cover multiple types of cargo.
https://www.fmcsa.dot.gov/registration/insurance-filing-requirements
- Do you need to carry a MC, ICC, or Form E?
- Do you drive within one state to do business then you may need an intrastate or state filing. If you travel.
- Do you travel among multiple states to do your job then you will need a federal or interstate filing.
- Keep in mind it is not uncommon for a business to have to carry both a federal and a state filing.
federal forms
The following federal filings are required for businesses engaging in interstate trucking or transportation of specific cargo:
- BMC-91 Filing: States there is enough Liability coverage to cover the increased risk of transporting goods or people across state lines.
- MCS-90 Form: An endorsement that must be attached to Liability insurance and Cargo Liability insurance policies if a federal filing is required. It guarantees the minimum required protection for the public if the customer is deemed legally responsible for an accident.
- BMC-34 Filing: Guarantees the required amount of Cargo Liability insurance is being carried.
nevada state forms
- Here is a list of common state forms:
- Form E Filing: Certifies that a customer’s Liability insurance complies with the state’s financial responsibility laws. This form requlates intrastate trucking in the customer’s home state.
- Form H Filing: Guarantees there is sufficient Cargo Liability insurance.
Carriers Types
Here is a list of carrier types and definitions:
- Common carrier: Someone who offers his or her services to the general public. This driver likely hauls cargo on highways across multiple states.
- Contract carrier: Someone who has a contract with a specific shipper, such as Roadway.
- Private carrier: Someone who works for a manufacturing company that hauls its own goods. This includes contractors who haul heavy equipment to perform jobs for their business.
- Exempt carrier: This carrier type is not subject to the rules that apply to common carriers. Examples include businesses that haul household goods or agriculture products.
WHAT ARE THE STEPS TO GET A TRUCKING AUTHORITY?
Complete the following applications and pay the application fees:
OP-1 or OP-1(P) form, the BOC-3 form
Make sure you have everything about the truck including the VIN, year, make, model, weight, etc.), your EIN, your business name details and license plate.
Once you complete the Motor Carrier Identification Report (MCS-150) and Safety Certification Application, you’ll receive your USDOT Number which you need to have a vehicle used in interstate commerce to move freight. This is when you will need to contact your insurance agent to update your policy.
There is a mandatory 10-business day dispute period that occurs after your application is posted to the Federal Register in which anyone can protest your authority. Once it ends, you’ll need to post proof of insurance and your BOC-3 form which assigns an agent or business in all 50 states to receive and forward legal documents on your behalf.
Your authority will be reviewed by the FMCSA. You’ll receive a letter from them when it’s approved, at which point you’ll start working on the rest of this list.
Secure Your UCR permit
Use the USDOT and MC Number to apply for the Unified Carrier Registration (UCR) system. UCR verifies active insurance coverage in the states you operate in. Appl for your permit and learn more about the UCR system.
Pay your HVUT
The Heavy Vehicle Use Tax is an annual tax assessed on all heavy vehicles operating on public highways. Research Form 2290, and when you’re ready, download the OOIDA worksheet. This must be completed before you agree to the IRP (International Registration Plan.
Register for the IRP
The International Registration Plan (IRP) is an agreement between the 48 contiguous states (and Canada) which provides the payment of licensing fees dependent upon the distance operated across all jurisdictions. It means you are licensed to participate in interstate transportation. The IRP website can help you complete this process. You must have an IRP account before you can set up an IFTA account.
Set up your iFTA account
The International Fuel Tax Agreement (IFTA) is an agreement between the 48 contiguous states (and Canada) that simplifies fuel tax collection. It means you can travel between jurisdictions and ensures each state has a share of revenue to support roads and transportation. With an IFTA license, you just have to submit one fuel tax return every quarter to your base jurisdiction. Learn about IFTA, including how to contract your base jurisdiction to set up your account.
There are some circumstances that will require extra permits. There are some circumstances that will require extra permits. Kentucky, New Mexico, and New York require weight distance permits to operate, and Oregon requires a permit and a bond. You’ll need the Standard Carrier Alpha Code (SCAC) if you’re moving military, government, international, or intermodal loads.
Enroll in a Drug and Alcohol Testing Program
All motor carriers are required by the FMCSA and the DOT to have a negative drug test prior to hiring drivers or driving themselves. Learn more about the rules and regulations related to drug and alcohol testing on the FMCSA website. All supervisors of commercial drivers are required to complete two hours of controlled-substance training, and a Designated Employee Representative (DER) must be named who is authorized to immediately remove employees from duty in the event they cannot pass a drug or alcohol test. Get full details!
After the above is complete, you'll be enrolled in the New Entrant Safety Assurance Program
Within your first 18 months of doing business, you will have a mandatory “New Entrant” audit to ensure you’re compliant with federal regulations. To make sure you are, start keeping good records now.
- Make sure you maintain:
- Driver qualification files/employee records
- Driver logs
- Safety records
- Hours of Service (HOS) records
- Accident Reporting
- Maintenance Records
- All Drug and Alcohol Testing Program records and reports
Learn about the New Entrant Safety Assurance Program on the FMCSA website.
Although there are a lot of steps involved, just take them one at a time. Truckers and drivers make the switch to owner-operator every day.
If you need help reach out to these companies
Nevada Transportation Authority https://nta.nv.gov
Truckstop.com/product
Transportation Complinace Service
Trucking Office Trucking Management Solutions
Electronic Logging Devices
The electronic logging device (ELD) rule- Electronic Logging Devices replace paper logs for truckers. The FMCSA dictates which truckers need to maintain electronic logs, as well as which truckers can continue to use paper logs.
Congressionally mandated as a part of MAP-21 – is intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share records of duty status (RODS) data. An ELD synchronizes with a vehicle engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording.
Find relevant information on how the ELD Rule impacts you and your organization.
My goal in putting this on my website is to help you get started. Use the sources I listed to get help. There are many more on the internet.
Your last step is to get your insurance. To save on your insurance, call us early in the process. We can save you time and money. Plus it will give me time to shop your insurance by the time your authority becomes active.
Get your insurance from us by calling (702) 541-0882.
This is intended as a general description of certain types of insurance and services available to qualified customers. Any description of policy provisions is meant to give a broad overview of coverages and does not revise or amend a policy. Refer to the policy coverage form for a complete representation of the scope of coverage, terms, conditions, exclusions and more. The policy is the contract that specifically and fully describes your coverage. Some products may not be available in all states and may only be offered on a non admitted basis. Product availability is subject to change.
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