750k vs 1 mil liability

Discussion in 'Experienced Truckers' Advice' started by wedge542, Sep 15, 2014.

  1. wedge542

    wedge542 Light Load Member

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    Why would a broker of com goods or a shipper require 1 mil, not hauling cars just reg comm goods, i know thers reasons but i cant see it.
     
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  3. 112racing

    112racing Road Train Member

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    a million is not that much more and looks better on paper

    many shippers require a million

    i always carried a million + a million umbrella on top of that
     
  4. wedge542

    wedge542 Light Load Member

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    but why, i know it looks and sounds important but whats the reason any shipper would care at all.
     
  5. StrongArm

    StrongArm Light Load Member

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    $750k is the min. required by FMCSA. Most shippers want to be covered for at least $1mil in order to protect there property, it does not necessarily correlate to the commodity hauled, unless you are transporting hazmat. Then limits required may be higher.
     
  6. Marlin46

    Marlin46 Medium Load Member

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    Most insurance companies will only write policies at $1,000,000 in Auto Liability coverage - there are a few that do 750k but I would say 90% of them only do $1,000,000.
    To a company / broker that ships a product if you carry $750,000 it appears you are only carrying the minimum that is required and not any extra. In this business it is worth it to carry the full 1MM or like 112racing above carries 2MM.
     
  7. fortycalglock

    fortycalglock Road Train Member

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    Because they don't want to be sued when you kill someone. What I'm really surprised about is that 100k in cargo insurance is still the standard.
     
  8. wedge542

    wedge542 Light Load Member

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    IM not sure any of you as yet realize caro is what protects the shippers items, not auto lib, im sure someone will read this that can give a solid reason why any shipper cares what we have for auto liability again nothing to do with cargo cargo is not involved in this question lets leave cargo out no cargo lol.
     
  9. fortycalglock

    fortycalglock Road Train Member

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    When a PI attorney starts naming responsible parties, you better believe the broker and/or shipper are named as well. 99% of suits don't go over a million. It's also why some brokers/3pl's require a GL policy as well.
     
    Marlin46 Thanks this.
  10. SHO-TYME

    SHO-TYME Road Train Member

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    Go buy that $750K policy then if you don't think it's important, just don't come on here crying when no one will book a load with you because you don't carry enough insurance.

    If you haul anything with a fuel tank on it, you WILL need that $1 million policy.
     
  11. wedge542

    wedge542 Light Load Member

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    i know its important but im trying to find out why its important besides the norm, its what they require responce, must be a reason like just said law suites can drag the broker/shipper in it so they need the coverage besides the cargo coverage, out of 5 larger brokers so far only 2 dont require the mil but im going to raise mine soon as i get my authority approved so if i want to haul there stuff ill have the 1 mil, i just wanted to know if there was a law of sorts saying this besides the norm fmcsa 750k.
     
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