Posted on 16 Dec, 2014
Categories: Trucking News
Liability insurance for carriers was back in the news this month. The FMCSA finally published an Advance Notice of Proposed Rulemaking (ANPR), and it recommends raising the minimum amount of liability insurance for carriers. The ANPR doesn’t say how much the new minimum will be, though. Before the FMCSA makes that decision, you can give feedback during the public comment period, which ends Feb. 26.
The notice includes 26 questions, asking everything from how much you’re currently paying in insurance premiums, how much an increase would affect your business, and how an increase might affect small carriers versus big carriers. Read the full ANPR here.
Many large carriers meet the minimum requirements of financial responsibility by posting bonds, letters of credit, or some other type of self-insurance. For small carriers and owner-operators, an increase could mean higher insurance premiums. The current minimum of $750,000 for general freight, $1 million for oil and some hazmat, and $5 million for certain hazmat classifications has been in place since 1985, and the FMCSA has said that the minimum would be $1.6 million for general freight today if it had kept up with inflation. Carriers who commented on our last story about carrier insurance said they pay between $7,500 and $9,000 a year per truck for insurance covering $1 million in liability. Submit your comment and answer the FMCSA questions here.
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