Commercial Truck Insurance Coverage Types Explained

Trucking insurance is not one product. It is a stack of coverages, each protecting against a different risk. Some are required by federal law. Some are required by the market — brokers will not touch you without them. Some are optional until the day they save your business.

This page is the map. For detailed breakdowns on individual coverage types, follow the links to each dedicated page.

The full coverage stack at a glance

Auto liability is your biggest line item and the only one the feds require

Pays for bodily injury and property damage you cause to others in an at-fault accident. Their medical bills, lost wages, vehicle repair, legal costs.

Does not cover: your truck (physical damage), your freight (cargo), your injuries (occupational accident), non-driving incidents (general liability).

Federal minimum: $750,000 combined single limit per 49 CFR 387. Hazmat: $1,000,000-$5,000,000 depending on cargo class.

Practical minimum: $1,000,000. Most brokers will not book you at $750,000. The cost difference between $750K and $1M is a few hundred dollars per year. The access difference is your entire load board.

Annual premium (new authority): $6,000-$12,000+.

Nuclear verdicts exceeding $10 million in trucking cases have increased 235% since 2012. The gap between $750,000 and $1,000,000 costs relatively little in additional premium but provides a meaningful buffer.

For a detailed breakdown: Auto Liability Insurance

Physical damage covers YOUR truck — not theirs

Two coverages bundled together:

• Collision: Damage from hitting another vehicle or object, rollovers, jackknifes
• Comprehensive: Everything else — fire, theft, vandalism, weather, hail, flood, animal strikes, glass

Annual premium: 1.7-4% of your truck’s stated value. A $100,000 truck: $1,700-$4,000/year. Deductibles: $1,000-$2,500.

Not federally required. But if you are financing, the lender requires it — it is their collateral. If you own the truck outright and a deer totals it, you are out the full replacement cost with no insurance payout.

The math: physical damage on a $100,000 truck costs $1,700-$4,000 per year. A total loss without coverage costs $100,000. The average commercial truck is involved in a reportable accident every 5-7 years.

Trucks older than 8-10 years may be declined for physical damage entirely by some carriers.

For a detailed breakdown: Physical Damage Insurance

Cargo insurance covers THEIR freight in your care

Covers loss, damage, or theft of freight during transit, loading, and unloading. Completely separate from physical damage. Physical damage = your truck. Cargo = their stuff.

Standard limit: $100,000 per occurrence (broker minimum). Higher-value freight: $250,000+.

Annual premium: $400-$2,500 depending on limits and cargo type.

Not federally mandated for general freight. But you will not get loads without it. Every broker and shipper requires cargo insurance as a condition of doing business.

Common exclusions that kill claims:

• Unattended vehicle theft without following security protocols
• Voluntary parting — handing cargo to a thief posing as a legitimate receiver
• Improper load securement
• Refrigeration breakdown unless specifically endorsed
• Inherent vice — produce that ripens in transit
• Delay damages

The commodity trap applies here. A general freight cargo policy may exclude certain commodities. Haul electronics under a “general freight, dry goods” policy and the claim gets denied.

For a detailed breakdown: Cargo Insurance

General liability covers the non-driving incidents that still get you sued

Bodily injury or property damage during business operations but not while driving. Loading dock accidents, slip-and-falls at facilities, property damage during loading/unloading.

Typical limits: $1,000,000 per occurrence / $2,000,000 aggregate.

Annual premium: $450-$1,500 (Insureon average: $606/year).

For what it costs relative to the risk, general liability is one of the best values in your package. A single loading dock incident without GL can bankrupt a one-truck operation. Many broker and shipper contracts require it.

For a detailed breakdown: General Liability Insurance

Bobtail and non-trucking liability fill different gaps — do not confuse them

This is one of the most commonly confused distinctions in trucking insurance.

Bobtail: Covers work-related driving without a trailer. Deadheading to pick up a load, driving back to the terminal after dropping a trailer.

Non-trucking liability (NTL): Covers personal use only. Driving to the grocery store on your day off. The moment your use is work-related in any way, NTL does not cover you.

The gray areas are where claims get denied. If your operation involves any mix of work and personal driving without a trailer, get clarity from your agent in writing.

Annual premium: Bobtail $300-$800. NTL $300-$600.

Typically required for owner-operators leased to a motor carrier. Your lease agreement specifies which you need.

For a detailed breakdown: Bobtail Insurance

Occupational accident is your safety net when there is no workers’ comp

If you are an independent contractor, you have no workers’ compensation. Occupational accident insurance is the alternative.

Covers medical expenses, lost wages (temporary and permanent disability), and death or dismemberment benefits for on-the-job injuries.

Monthly premium: $129-$152. Annual: $1,548-$1,824.

A back injury that keeps you off the road for 6 months with $80,000 in medical bills and zero income will end most one-truck operations. This coverage prevents that.

For a detailed breakdown: Occupational Accident Insurance

Umbrella liability extends your ceiling for nuclear verdicts

Sits on top of your primary auto liability and general liability. Provides extra coverage once underlying limits are exhausted.

A jury awards $8 million. Your auto liability covers the first $1 million. Without umbrella, the other $7 million comes from you.

Typical limits: $1 million to $5 million above primary.

Cost: $1,500-$5,000+ annually for a new authority with $1M primary liability.

Most new single-truck carriers do not need umbrella on day one. As your operation grows and assets accumulate, it becomes increasingly important.

What you actually need depends on how you operate

Solo owner-operator, own authority, general freight

Estimated annual cost: $12,000-$20,000

Leased owner-operator, under a motor carrier

Estimated annual cost: $3,500-$7,000 (carrier covers the big-ticket items)

Small fleet, 2-5 trucks, general freight

Estimated annual cost: $25,000-$60,000+

Hazmat carriers

Everything above, plus:

• $1,000,000-$5,000,000 auto liability per 49 CFR 387
• Pollution liability for environmental cleanup
• Higher umbrella limits
• Premiums 30-50% above equivalent general freight operations

The minimum viable package versus the responsible package

Minimum viable for a new authority: auto liability at $1M, physical damage if financed, cargo at $100K. That is the floor.

Everything above that is risk management — deciding how much financial exposure you can absorb when something goes wrong.

A specialist trucking insurance agent builds this stack for your specific operation. They know which coverages your target brokers require, which carriers offer the best rates for your profile, and where the gaps are that can deny a claim. That is the value of expertise applied to your situation.