Motor Carrier Insurance

Your personal auto policy only covers accidents that take place while you're driving for personal reasons. It won't cover accidents that occur while driving for business purposes beyond a commute.

Here are a few reasons why motor carriers might need additional insurance:

• Your state mandates insurance. The laws in almost every state require a commercial auto insurance policy for vehicles owned by a business. Sometimes they include requirements for other types of coverage, such as uninsured motorist coverage or personal injury protection (PIP).
• The FMCSA mandates insurance. Motor carrier businesses may need public liability insurance and cargo insurance to comply with FMCSA insurance requirements.
• You need coverage to sign a contract. Your clients might require you to carry insurance coverage as part of a contract. It can also give you an edge over competitors, as clients prefer bonded and insured companies that can withstand disruptions.
• Insurance protects against catastrophic losses. Car insurance is a crucial part of risk management. It helps your business recover quickly from accidents that might otherwise result in a devastating financial loss.

If you drive a personal, rented, or leased vehicle for work, you can look to hired and non-owned auto insurance (HNOA) for coverage. Certain professions may require additional coverage, such as commercial trucking insurance for towing, trailer interchange, and other specialized risks.

These insurance products cover other risks faced by businesses in your industry:

• Business interruption insurance: Also called business income insurance, this coverage pays for financial losses when your business halts operations due to a fire, storm, or other covered property loss. It's often included with commercial property insurance or a business owner's policy.
• Employment practices liability insurance (EPLI): When workers accuse your business of wrongful termination or other violations of employee rights, this policy helps pay for your legal costs.
• Inland marine insurance: Commercial property insurance only covers property at your main business location. You may need motor truck cargo insurance or other types of inland marine insurance for items in transit or awaiting distribution.
• Mobile equipment endorsement: This auto insurance endorsement covers specialized business vehicles, such as forklifts, tractors, and other machinery driven on public roads.
• Occupational accident insurance (OAI): Similar to workers' comp, this voluntary policy protects independent contractors and owner-operators from work-related medical bills.