Trucking Insurance 101: What Coverage Do You Really Need?

Here’s a breakdown of the essential trucking insurance policies you’ll need in 2025.

Primary Liability Insurance

• What it covers: Damage or injury you cause to others in an accident.

• FMCSA requirement: Minimum $750,000 (most brokers and shippers want $1,000,000).

• Why it matters: Without it, you can’t get operating authority.

Cargo Insurance

• What it covers: Damage or loss of the freight you haul.

• Standard limit: $100,000 per load (some shippers require higher).

• Key tip: Always confirm commodity exclusions before you accept a load.

Physical Damage Insurance

• What it covers: Repairs or replacement for your own truck and trailer.

• Why you need it: Protects your equipment investment in case of accident, fire, theft, or natural disaster.

General Liability Insurance

• What it covers: Claims not directly related to driving — for example, if someone is injured at your office or during loading.

• Recommended limit: $1,000,000.

Bobtail/Non-Trucking Liability

• What it covers: Liability when you’re driving your truck for non-business purposes (not under dispatch).

• When it applies: Required by many leasing companies and brokers.

Optional but Useful Coverages

• Occupational Accident (OCC/ACC): Coverage for owner-operators who don’t carry workers’ comp.

• Workers’ Compensation: Required if you hire drivers or staff.

• Trailer Interchange Insurance: Needed if you pull trailers you don’t own.

How to Lower Insurance Costs

• Maintain a clean driving record.

• Use ELDs and GPS to show safety compliance.

• Shop around with trucking-specialized brokers.

• Consider higher deductibles to lower monthly premiums.

Final Thoughts

Insurance is unavoidable, but the right coverage keeps you compliant, protects your business, and gives brokers and shippers confidence to work with you.

👉 Want a full startup checklist that includes all compliance and insurance steps? Download the CDL2CEO Trucking Authority Toolkit today.