Raising Trucking Insurance: Necessity or Additional Headache?

A proposal has been made to raise the minimum of trucking insurance from $750,000 to $1 million. For members of the trucking industry, a comprehensive insurance is required to cover the possible liabilities truckers may face while out on the road. Whether it's protection from damage, loss or injury, having insurance can help both drivers and owners from facing financial losses, as well as protect the general public from reckless truck drivers. While the Trucking Alliance believes that the minimum must be raised to help with settlements for uninsured liabilities, both the OOIDA and ATA believe that it's an unnecessary expense and could make truckers bigger targets for personal injury law firms. With the Federal Motor Carrier Safety Administration (FMSCA) still analyzing the proposal as well as the studies made by the 3 groups, all truckers are advised to maintain their current policies and drive safely.

http://c2cservices.com/blog/industry-news/fmcsa-analyzes-possibility-of-raising-trucking-insurance-minimum-ooid-and-ata-think-otherwise/

The Importance of MC Authority and Other Permits to a Trucking Business

Trucking is a lucrative business that can generate a lot of profit for everyone involved, making many people interested in joining the industry. However, not anyone can just start a trucking business without getting the necessary permits for it. The most important permit needed for a trucking business is a motor carrier or MC authority. It's a designated number issued by the US Department of Transportation which acts as a license as well as a carrier insurance for the protection not just for the business owner, but also the public. Depending on the type of materials a truck carries, other permits may also be required before a trucking business can head out on the road. Apart from legal matters and the ability to cross state and country lines, carrier permits can also help people in the trucking industry to gain the trust of existing clients and attract potential new ones.

http://c2cservices.com/blog/industry-news/get-an-mc-authority-for-your-planned-trucking-business-less-the-hassle/

Why You'll Need Commercial Truck Insurance

If you have recently started a logistics and transportation company, you are going to need a truck insurance before you can begin accepting customers. A truck insurance functions like a car insurance; even the steps to obtain either one are remarkably similar. However, unlike car insurance premiums, truck insurance policies have much higher premiums.

Trucks are much larger than cars, after all, and are much heavier since they are designed to tow loads and trailers. If a Lincoln car rear-ends an Escalade SUV, for instance, the damage is more likely to result in minor injury or auto repair. The same can't be said if a commercial truck rear-ends a Lincoln or an Escalade, as you certainly wouldn't want to pay for the ensuing expenses out of your own pocket.

Commercial truck insurance terms vary from state to state, so it is therefore ideal to get help from reputable consultants who can tell you which one best fits your business requirements. Among other things, you need to look into liability coverage. If your driver happens to have caused an accident, you wouldn't need to worry as your insurance company will pay for the injured party's medical expenses as well as the cost of damage to property.

Official Terms in the Trucking Industry

What most people call a “trucking company” or a “trucker” is a “motor carrier” or simply, “carrier” in official language. The carrier industry is regulated by the Federal Motor Carrier Safety Administration (FMCSA) division of the U.S. Department of Transportation. Those who wish to learn about the various licensing requirements for a trucking operation may benefit from knowing some of the official industry terms.

• Motor carrier (carrier) – a company (individual, partnership, or corporation) that provides transportation using trucks
• Private carrier – a carrier that transports cargo that has been produced, sold, or purchased by the same company which owns the carrier
• For-hire carrier – an independent company that provides transportation for others at a fee
• Freight Forwarder – a company that provides cargo transportation services using for-hire carriers. They are responsible for the cargo from origin to destination.
• Broker – similar to a Freight Forwarder, they also provide transportation for other companies using for-hire carriers. However, they do not assume responsibility for the cargo.

The term “common carrier” used to refer to for-hire carriers who provided trucking transportation for anyone using publicly published rates. Meanwhile, the term “contract carrier” previously referred to for-hire carriers who provided transportation to specific clients under rates agreed by both parties. After January 1, 1996, however, the distinction between a common and a contract carrier has been nullified. The difference now is that common carriers are required to carry proof of cargo insurance, while contract carriers are not.