All commercial trucks are subject to federal and state laws to minimize the potential risks of causing an accident. A few truck companies and drivers ignore essential safety regulations and rules to meet their deadlines and boost their profits. When traffic officers find a truck company violating the safety regulations and result in an accident, they can be held responsible for the damages and losses suffered in the accident.

Many truck accidents result from reckless truck drivers. The law in California requires truck companies to be well-insured. The company must know the insurance requirements, the interstate insurance details, the insurance policies, the amount covered in different types of truck insurance, and the process of insuring their trucks.

Insurance Coverage

Opening a truck company is difficult because you require many details and paperwork. You must lease or buy trucks, employ drivers and register your business as required by the state. Purchasing commercial truck insurance is essential to start your operations and activate your motor carrier authority legally.

You want to seek legal help from your attorney to ensure you can open a trucking company in California. The transportation department has outlined the insurance requirements for the trucks crossing the state. A commercial truck driver will require more insurance than a regular driver.

Liability insurance will cover medical expenses for any victim injured because of the fault of your truck driver. Also, the insurance covers your truck if it is damaged in an accident. Many truck accidents lead to rollovers. When a driver commits an accident while uninsured, they may face significant fines from the FMCSA.

Insurance Requirements

The US transportation department requires all commercial vehicles transporting products across different states to obtain a US department of transportation number. Each vehicle must carry a specific insurance amount depending on the cargo they haul. A truck transporting hazardous chemicals must register to obtain the USDOT number.

Before you obtain the DOT number, you must obtain truck insurance. You should also pay a liability ranging from $750,000 and $1,000,000. Also, your truck company must have cargo insurance of around $5,000 for every vehicle and $10,000 to cover theft and accident. There are different kinds of truck insurance provided by the truck insurance companies as follows:

  • General liability
  • Cargo
  • Liability
  • Physical damages
  • Non-truck liability
  • Uninsured and underinsured motorists
  • Personal injury protection

Liability insurance is one of the essential types of commercial truck insurance policies your company may purchase. When one of your drivers is at fault in an accident, liability insurance covers the medical bills for any person injured in the truck accident. Also, the insurance will cover ongoing medical expenses like physical therapy.

Again, liability insurance covers extensive care, rental reimbursement, and repair for the vehicle. Apart from paying the medical costs for the injured victims, the insurance company may provide a policy to cover pollution coverage and environmental cleanup. A truck accident may mean a financial crisis for small truck companies.

However, when you insure your trucking company with a large insurance company, you can remain financially secure in case of an accident. Sometimes, you might owe money to the society where the truck accident occurred. A rollover might block the way for several minutes, if not hours.

You must work with a truck insurance company which, in addition to complying with the laws, ensures the safety of the driver and the accident victims. With proper financial insurance, you are in a good position to become DOT-compliant. A good truck insurance company offers new truck companies affordable insurance to promote the company's growth.

Various Kinds of Truck Insurance

Truck insurance in California is complex. It only takes an expert to know what to include in the insurance policy. You want to work with an attorney familiar with the trucking company's insurance.

Long and Local Haul

Your trucking company must be fully insured whether you wish to travel around the country or within the state. Every state has unique insurance requirements. Many insurance providers focus on long hauls, intermediate and local.

You want to seek a truck insurance company that covers your company regardless of how long or short your haul is. It would be best to focus on the insurance company which creates policies based on your requirements. A truck that stays within 250 miles radius is considered a short-haul, while a driver who covers more than 250 miles is considered a long-haul.

Auto Haulers

You know how tiring it is to operate a commercial truck. It might be challenging to balance the cargo, and you may transport dangerous and expensive goods. According to the law, auto haulers must have at least $1,000,000 as insurance. The law recommends you even carry more than this amount. If you are a new trucking insurance company, you want to work with a truck insurance company that understands small businesses.

Intermodal Drivers

You must have intermodal insurance when your driver picks up cargo at the docket. The insurance costs around $80,000 annually. Intermodal transportation means the driver takes more than one mode of transport before arriving at their destination. Many drivers prefer this mode since it allows more home time.

The intermodal truckers often carry containers. Carrying a container might be challenging, but you might also encounter potential risks. Pins fix many containers in their positions, and when they are not properly secured, the container might slip and cause a catastrophic accident. Therefore the law requires your trucking company to have a sturdy chassis to ensure your load is well-fixed.

Insurance companies consider container transportation as an additional risk. So, you require additional insurance, which might cost you around $8,000. Work with an experienced insurance company to deal with truck compliance. The company will write an insurance policy to protect your assets and drivers.

Mixed Radius

You must work with the perfect insurance company when your truck company mixes short and long-haul trucks. You will require several types of coverage to cover your small business. The more states you cross with the commercial trucks, the more fees and taxes the law requires you to pay. A truck insurance company with a good reputation will work hard to save you money and ensure you obtain the best available deal.

Coverage for One Commercial Truck

If you work as an owner-operator from your own house, you also require an insurance plan to cover your vehicle. When traffic officers arrest you without truck insurance in California, it means a failed audit or inspection. Also, this can mean a shutdown or a fee. Therefore before you can operate your truck, you want to seek legal advice. Ensure you understand the law about trucking insurance and how the insurance policy works in California.

UIIA and Trailer Interchange

The truck companies share equipment and borrow and lease equipment from the railway and airline businesses. When your commercial truck causes an accident, your company will be held accountable for the equipment they are currently using. So, you must work with an insurance company that covers all the equipment necessary to run your business.

Straight Trucks

When you seek a truck insurance company, you want to go to an insurance company that covers semi-truck and straight trucks. When you operate a garbage truck, moving truck, or any other straight truck, you must pay special taxes to operate your vehicle legally and safely.

Go for the insurance company which covers all sizes and shapes. Remember, small truck insurance companies are vulnerable to significant issues and fines. Your attorney can help you develop an insurance policy targeted at protecting you. California is the second state with the most truck companies in the US. So, the state has strict rules and requirements for truck insurance.

New Ventures

In California, many insurance companies will be reluctant to insure you when you are a new client. They might think your inexperience will make your driver a high risk. You want to go for the truck insurance company, which specializes in helping new trucking companies with their compliance, finding loads, and insurance. Also, the company will assist you if you are an experienced truck company owner starting a new business.

Physical Damages

Commercial trucks are expensive vehicles. Although they are strong, they might be damaged during an accident. When the truck driver is responsible for the accident, the liability insurance does not cover physical damage. When another driver is responsible for a truck accident, the law requires the drivers to carry an insurance amount recommended by their state of residence. The standard driver can't have sufficient liability insurance to cover a truck's potential cost.

Physical damage insurance covers the damages to the truck from the accident. The law also allows you to obtain comprehensive insurance to cover damages caused by weather conditions. Again, you must have an approved repair shop to provide your truck company with the spare parts.

Personal Protection

In the United States, two main types of insurance exist no-fault and fault. Where a no-fault law applies, the insurance company must cover the injuries sustained by the victims regardless of who was responsible for the accident. Alternatively, in a fault rule, the law requires the party responsible for the accident to compensate the victims.

When it comes to trucking companies, things tend to be different. When the commercial truck driver causes an accident to face an accident in a faulty state caused by another party, the law requires the liable party to compensate the victim. The injuries suffered in a truck accident tend to be severe. Sometimes the involved driver does not have insurance. That’s why it is recommended you carry personal protection, referred to as uninsured insurance.

General Liability

A truck company is a business. Like the other companies, it requires insurance to cover injuries. Again, the truck companies receive meals and delivery of supplies. Job applicants and clients will visit the trucking company.

Therefore when you have numerous people visiting your business, you must ensure the walkways remain clear and the floor is not slippery. When a person falls on your premise, the law requires you to cover their medical bills.

Nowadays, cyber liability has become a significant concern. The information might be compromised when you store sensitive information on your trucks and clients. So, your truck business might face a lawsuit. That’s why you must have general liability insurance. Ensure you work with an experienced insurance company to have a general insurance policy under your cover.

Cargo Insurance

When clients trust you with their precious cargo, they want you to deliver it to its destination on time. You must note clients build their businesses as you work hard to make your trucking company. However, an accident may occur along the way and damage motor truck cargo.

At other times, the cargo may not be damaged, but the driver might delay and arrive later. All trucks want to obtain commercial auto insurance for the cargo. For example, when a truck has 16000 GVW or more, you want to buy $100000 cargo insurance coverage. Again, trucks carrying hazardous and flammable materials want a minimum cargo coverage of $1000000.

Straight truck insurance depends on what they haul. Most of the straight trucks have a $50000 cargo limit. You must note motor truck cargo insurance covers you in case of an accident and when goods are stolen. Theft has become an ongoing problem for truck drivers, where drivers are held at gunpoint. And that's why motor truck cargo covers theft to ensure your clients trust you. A good insurance company wants to ensure you receive the best insurance at a low price.

Reefer Insurance

The main purpose of a truck insurance policy is to protect your goods against any threat. To avoid spillage or damage, a reefer truck transports perishable goods, and items must remain at a specific temperature. The truck contains many moving parts. Several things, including the refrigerator, may go wrong as the truck travels down the highway.

The truck's parts have a closed refrigeration system and depend on the compressor to function appropriately. When the refrigerator stops working, it may mess with spoiled goods. Therefore, you want to pay for insurance to cover product loss.

When transporting high-risk foods, including fish, meat, and milk, which are not adequately refrigerated, someone may become sick and sue your company. Most importantly, reefer trucks are a significant investment for trucking companies. Being a profitable business, you want to protect yourself from risks coming with transporting perishable products. To protect yourself, You want to seek insurance coverage that insures you from product loss and other potential problems.

General Truck Insurance

When you seek to insure your truck, do you want to consider insurance covering general cargo? General cargo includes office supplies, furniture, and mechanical equipment.

Dry Good

Dry goods insurance policies require special attention and customized plans due to the risk involved in transporting and delivering fry goods. Dry goods include products that cannot get wet, like canned goods, auto parts, and paper products. To properly cover your truck, you want the help of a knowledgeable trucking insurance specialist to protect your insurance company.

Flatbed Truck Insurance

Flatbed trucks are a kind of trucks that are wide open and normally used to carry loads. Common loads include machinery, bikes, heavy metal sheets, and vehicles. Goods carried on flatbed trucks are more vulnerable than goods on other kinds of trucks. When there are potholes and the load shifts or rolls over, the truck, the driver, and the cargo are at risk.

 Flatbeds are the best when it comes to loading and unloading. But when an accident occurs, the cargo may be damaged completely. If you seek insurance coverage, you want a good insurance policy for products you want to transport on a flatbed.

Deadline for Filing a Claim in a Truck Accident

Under California code of civil procedure section 335.1, you have 24 months from the date of the accident to file a lawsuit. You might not need to file a lawsuit in many cases since the liable party's insurance company will try to settle the case outside the court.

They obtain your claim and offer a compensation amount they think is fair. In many cases, the amount does not reflect the value of the compensation you require. To obtain the compensation you require, you must seek legal help from a California truck accident attorney immediately after the accident.

Contact A Truck Accident Attorney Near Me

When your truck commits an accident, you want to fix things immediately and resume your business. To battle the challenges, you must have enough insurance coverage in California. An insurance policy to cover your liabilities is ideal whether you are operating a small or massive fleet of trucks. But you need legal help from a well-experienced insurance company.

At The Personal Injury Attorney Law Firm, we are here to help you learn truck insurance requirements, among other information. Therefore if you seek to insure your truck company across California, reach us as soon as possible. Contact us at 800-492-6718, and we will schedule an initial consultation at no cost.