Introduction
Hauling hazardous material is risky! Not having the right insurance can ruin your business. To protect your trucking business from significant financial loss, this article is going to discuss how hazmat trucking insurance will safeguard your business from financial loss. Furthermore, this article is going to provide an in-depth overview of the coverages hazmat trucking insurance provides.
Overview of Hazmat Trucking Insurance
Federal and state laws require truckers hauling hazmat materials to carry commercial auto insurance (at higher limits). Depending on the state, truckers are required to carrier coverages from one million to five million. Additional restrictions are imposed depending on the materials hauled.
What does Hazmat Trucking Insurance Cover?
- Pollution Liability: This provides coverage for cleanup expenses due to an accident, including damages arising out of the discharge of pollutants which are in, upon, owned, being transported by, loaded or unloaded from a covered auto.
- Collision & Comprehensive: This protects your tractor and trailer against collision or from upset, overturn, fire, theft, vandalism, and other causes of loss.
- Physical Damage: It consists of collision and comprehensive coverage. Collision coverage protects your truck and trailer if you’re in an accident or collide with something. Comprehensive can help you cover losses not caused by a collision, such as fire, vandalism, theft, and other damages.
- Hazmat Hauler’s General Liability: It provides liability coverage for nontrucking related claims, such as wrongful delivery of liquids.
- Combined Deductibles: It allows you to pay only one deductible in the event a loss occurs involving both physical damage and cargo.
- Medical Payments or Personal Injury Protection: This pays medical and other expenses to driver and the passengers in your vehicle who are injured during an accident, regardless of fault.
- Loading & Unloading: It provides cargo coverage for the commodity while it is being loaded or unloaded.
- Downtime: Downtime coverage can help you keep your truck payment and other bills current if a covered loss renders your vehicle inoperable for an extended period of time.
How much does Hazmat Trucking Insurance cost?
On average, commercial auto insurance for hazmat truckers costs between $12000 to $18000 annually.
The Information You Will Need to Obtain a Quote
You need the following information to obtain a quote and these factors impact the cost of your insurance:
– Fleet Size
– Radius of Operating Area
– Equipment value (trucks and trailers)
– Commodities hauled
– Years in business
– Number of claims in the past (if applicable)
FMCSA Insurance Filings
A filing is a document that shows proof of financial responsibility. It certifies to the government that you have Liability insurance or a cargo insurance policy with at least the minimum required limits. Hazmat haulers are required to have both filings and Hazmat Safety Permit. Give us a call and we will help you secure both.
