The trucking and freight industry is crucial to the economy, transporting goods from coast to coast. However, a lot of liability is riding on your trucking insurance and freight management systems.
Thieves stole over $31.1 million in shipments in the last quarter of 2023, according to CargoNet’s Q3 2023 Supply Chain Risk Trends. Here are some of the top freight theft schemes that you should be aware of:
- Straight theft: Criminals steal directly from the truck while it’s on the route or at a stop.
- Strategic theft: Scammers fake legitimate freight bookings or transfer loads between brokers without proper authorization. Strategic cargo theft groups focus on stealing high-value goods during transportation. Some fraudsters even pretend to be brokers, booking freight with one carrier, switching to another at a cheaper rate, and pocketing the difference. These types of fraudsters have a deep understanding of the supply chain and know how to exploit it.
- Cyber theft: Cybercriminals capture driver, broker, or warehouse employee credentials and account information. They use these credentials to fake identities, access warehouses and truck routes, or impersonate a freight broker using stolen account logins to intercept loads.
Solutions for Federal and State Requirements
Motor carriers, freight forwarders, and brokers need permission from the Federal Motor Carrier Safety Administration (FMCSA) to operate across state lines or international borders. To obtain permission, they must carry insurance that complies with FMCSA standards.
Public liability insurance covers bodily injuries, property damage, and environmental restoration due to motor carrier negligence. The FMCSA requires specific amounts of insurance, such as:
- $750,000 to $5 million in public liability coverage (depending on what’s being transported) for trucks weighing 10,001 pounds or more.
- $300,000 in public liability for trucks carrying nonhazardous materials weighing 10,000 pounds or less.
Even if you don’t operate across state lines, you still need insurance that complies with your state laws. We work with insurance carriers that understand the proof of insurance required for federal and state authorities. However, we also recommend protection that goes beyond compliance.
Get Complete Protection For Trucking Insurance
In addition to meeting regulatory requirements, you should protect your trucking insurance from liabilities threatening your revenue. These include vehicle accidents, cyberattacks, cargo theft, and damaged and lost freight. Here are some common risk areas that we cover:
- Bobtail insurance/nontrucking liability: Covers your rig when you’re not under dispatch or pulling a loaded trailer.
- Commercial umbrella insurance: Extends liability limits across multiple lines of insurance once the limit on a named policy is exhausted. It can extend to several policies.
- Completed operations coverage: Helps if a client claims your delivery services damaged their freight and sues you for losses.
- Cyber liability insurance: Covers data theft and losses if a cyberattack compromises your telematics, broker, routing, or client management software. It covers restoring software, fines, legal fees, and free credit monitoring services.
- Excess insurance: Increases the liability limits on an insurance policy of your choosing. Excess coverage is limited to one policy.
- General liability insurance: Covers bodily injuries and property damage sustained while on your premises, from using your products or services, or because of a breach of contract. It applies to anyone who isn’t an employee.
- Motor truck cargo insurance: Protects your freight against damage and loss. Cargo insurance can cover various catastrophes, from theft to refrigeration failures.
- Physical damage insurance: Covers truck and trailer repairs after an accident. Add uninsured/underinsured motorist coverage to your auto policy to protect against underinsured drivers.
- Workers’ compensation insurance: Covers employees injured on the job.
Cost of Trucking Insurance: What You Can Expect
Trucking insurance premiums can vary based on multiple factors, making it essential to understand what influences pricing.
Key factors impacting cost:
- Type of Freight: High-risk or valuable cargo leads to higher premiums.
- Operating Territory: Urban, congested areas can increase costs due to higher accident risk.
- Truck Type and Age: Newer, well-maintained vehicles often reduce premium costs.
- Driver Records: Clean driving histories help in keeping insurance affordable.
- Coverage Levels: The broader the coverage and higher the limits, the more you’ll pay.
Estimated pricing:
- For local freight trucking, insurance typically ranges between $12,000 to $16,000 per truck annually, depending on factors like the type of truck, driving record, and coverage needs.
- Specialized coverage or higher liability limits can increase this figure, but they offer valuable protection against costly liabilities.
Working with an experienced agent can help you compare plans and choose coverage that offers both protection and affordability.
Call Us for a Coverage Review
We’re an independent agency, meaning we work for you, not the insurance company. We’ll shop multiple insurance carriers and advise you on trucking insurance policies for your business. Call us for a review of your freight insurance. We’ll help you save money or find better coverage, or both!
