How Much Truck Liability Insurance Do I Need?

How Much Liability Insurance Do I Need?

This is a common question we get asked regularly here at BulkLoads Insurance. Here are some things to think about when deciding on the right amount of coverage.

1. The Legal Minimum: $750,000

Let’s start with the basics. To legally operate, you need at least $750,000 in liability insurance. This has been the law since 1980, and all states require it. So, as long as you’ve got that, you’re legally covered.

But keep in mind, that’s just the minimum. It’ll keep you legal, but in many cases, it might not be enough for everything you’ll face. Let’s dive into why you might want to carry more insurance.

2. Shippers and Brokers Expect More

These days, many shippers and brokers are requiring at least $1 million in insurance before they’ll work with you. They want to make sure you’re well covered in case of an accident, and that their load is protected.

If you only stick to the $750,000 minimum, you might find it harder to get the best jobs. By increasing your coverage to $1 million or more, you’ll not only meet their expectations but also open up more opportunities for better-paying loads.

3. Protecting Your Assets

One of the biggest reasons to consider more insurance is to protect what’s yours. If you’re ever involved in a serious accident and the damages are more than your insurance covers, the person suing you might come after your personal assets. That could include your trucks, property, or savings.

Here’s a simple way to look at it: if you have $2 million worth of assets, you should carry $2 million in liability coverage. That way, if something goes wrong, you’re covered, and your assets stay safe. It’s better to have enough insurance to match the value of what you own.

Final Thoughts

So, how much truck insurance do you need? Legally, $750,000 is the minimum. But if you want to protect your business and personal assets, and get more work from shippers and brokers, aiming for $1 million or more is a smart move. It’s better to have more coverage and not need it than to be underinsured when you need it most. If you have specific quesitons, please email me directly [email protected]!