Every motor carrier operating under its own authority needs a minimum set of insurance coverages to stay compliant and protected. The problem is that most fleet owners buy what they're told to buy without understanding what each policy actually does — or where the gaps are. Primary Liability (Auto Liability) Primary liability is the coverage the FMCSA requires before you can operate. It pays for bodily injury and property damage you cause to others in an accident. The federal minimum is $750,000 for general freight and $1,000,000 for hazmat — but minimums are rarely enough. Most carriers we work with carry $1,000,000 in primary liability regardless of commodity. Shippers increasingly require it, and the difference in premium between $750K and $1M is often less than fleet owners expect. What it covers: - Bodily injury to third parties - Property damage to other vehicles, structures, cargo - Legal defense costs (in most policies) What it does not cover: - Damage to your own truck or trailer - Your own cargo - Injuries to your own drivers (that's workers' comp) Physical Damage Physical damage coverage protects your own equipment — the trucks and trailers you own or lease. It has two components: comprehensive (theft, fire, weather, vandalism) and collision (damage from an accident regardless of fault). If you're financing or leasing equipment, your lender requires physical damage coverage. If you own your trucks outright, it's technically optional — but one total loss on an uninsured $180,000 truck can end a small fleet. Key considerations: - Actual cash value vs. stated amount vs. replacement cost - Deductible selection ($1,000–$5,000 is typical) - Whether your trailer is scheduled separately Motor Truck Cargo Cargo insurance covers the freight you're hauling if it's damaged, destroyed, or stolen while in your care, custody, and control. The standard limit is $100,000, but many shippers and brokers require $250,000 or more. Common exclusions to watch: - Refrigeration breakdown (requires a reefer endorsement) - Unattended vehicle theft (some policies exclude or sublimit) - Commodities not listed on your policy - Loading and unloading damage (varies by policy) General Liability General liability covers your business operations off the road — slip-and-fall at your yard, damage to a shipper's dock during loading, advertising injury claims. It's separate from auto liability and often overlooked until a broker or shipper asks for it. How These Policies Work Together Think of your insurance program as layers. Primary liability protects others from you. Physical damage protects your equipment. Cargo protects the freight. General liability protects your business premises and operations. Workers' compensation protects your people. No single policy covers everything. The carriers who get burned are usually the ones who assumed one policy covered a loss that actually fell in a gap between two policies. What Trux Recommends We review your operation, your contracts, and your risk profile before recommending limits or coverages. Every fleet is different — a local hotshot carrier hauling auto parts has a completely different risk profile than a long-haul reefer fleet moving produce cross-country. If you're unsure whether your current program has gaps, send us your current dec pages. We'll review them at no cost and tell you exactly where you're exposed.