More Information about Commercial Motor Vehicle (CMV) Insurance
Learn how CMV insurance helps commercial trucking companies mitigate risk, as well as three relevant policy types and what they cover.
Why Is Commercial Motor Vehicle (CMV) Insurance Important?
Commercial trucking is an industry with inherent risks. For carriers, some of those risks can be mitigated by using best practices for things such as inspections, compliance, safety and driver training. These things can help reduce risk, but can never eliminate risk completely. While on the road, there are number of risk factors the driver is NOT able to control. These include things such as behaviors and actions of other motorists, weather and criminal activity. This is why it is important to have proper insurance in place for commercial motor vehicle (CMV) operations.
Types of Coverage
CMV Auto Liability: All freight motor carriers are required to maintain minimum levels of auto liability insurance coverage. Most of the time auto liability insurance covers the following:
- Bodily injury and property damage as the result of an accident
- Bodily injury and property damage as the result of delivering someone else's goods
- Personal injury (negligence)
- Medical payments
Cargo Liability: The requirement to carry cargo liability insurance will vary from company to company. There is no USDOT requirement for maintaining cargo insurance for freight motor carriers, only carriers who transport household goods. Cargo liability insurance will cover damage or loss of the freight you are carrying. Certain types of freight may require special coverage not typically included in a cargo insurance policy. Examples include hazardous materials and pharmaceuticals.
Trailer Interchange: Trailer interchange insurance may be required if you are pulling trailers not owned by your company. This type of policy covers physical damage or loss of the non-owned trailer. Requirements for trailer interchange insurance vary by company and there is no USDOT requirement for carriers to maintain this type of coverage.