Transportation Insurance

Transportation insurance covers the general risk of running a transportation business, protecting against financial losses from vehicle accidents. While transportation insurance is common in the trucking industry, all businesses with any type of transportation fleet must have transportation insurance, even when transportation is not the organization’s primary business. 

Each industry, including construction, retail, energy, medical, agribusiness and others, has its own coverage requirements, but transportation is heavily regulated by both state and federal regulations.

For any type of commercial fleet, coverage for commercial auto liability and physical damage is generally required. The motor carrier coverage form is used for any for-hire trucking company; the business auto form is for other businesses that may have its own vehicles. The motor carrier form includes endorsements or amendments, such as Trailer Interchange coverage.

For-hire commercial truckers will need a stand-alone Motor Truck Cargo policy. This insures the trucker for any legal liability for damage done to cargo.

The following factors affect the cost of transportation coverage: previous losses (i.e., claims history); U.S. Department of Transportation (DOT) and Occupational Safety and Health Administration (OSHA) compliance; Compliance, Safety, Accountability (CSA) scores; vehicle maintenance and driver training programs; and driver retention, as well as the location of the operation and hauling destinations. Underwriters will also look closely at your driver roster and take driver health and motor vehicle report (MVR) record into consideration.

Yes. When transporting people versus property, organizations need commercial auto liability and physical damage policy. Medical transportation vehicles such as ambulances, paratransit and other emergency and non-emergency vehicles have additional, specific requirements and unique endorsements to meet.