General Liability and Commercial Auto Insurance Explained
Commercial Truck Insurance can feel like a headache with all the jargon—General, Primary, Non-Contributory—what does it all mean?
Here’s a quick and easy CIS cheat sheet to help make sense of this annoying truck insurance lingo:)
What is Commercial Auto Liability Insurance?
Auto Liability insurance has your back when you’re out driving your truck and accidentally someone or something.
It helps cover repair costs, medical bills, and even legal fees.
Commercial Auto Liability is the insurance truckers need to hit the road, as required by the FMCSA.
FMCSA is the Federal Motor Carrier Safety Administration.
What does Primary Insurance for Truckers mean?
When your broker says he needs proof of your Primary insurance, they mean your Commercial Auto Liability coverage.
Just like your regular auto insurance, it covers you 24/7.
What is Primary and Noncontributory on an Auto Policy?
This means your Commercial Auto Liability policy will handle a covered claim first (primary) and won’t seek other coverage contributions.
You’ll often see this kind of request when Owner Operators with under 10K GVW Commercial Vans haul for multiple Motor Carriers.
Cargo Van & Sprinter Insurance can include Primary and Noncontributory coverage, along with proof on a certificate of liability for your motor carrier.
Then What is General Liability Commercial Insurance?
General Liability for Truckers is correctly called Motor Truck General Liability Insurance.
It insures you for activities while you’re not driving your truck.
Think of it as a safety net for business activities you perform every day–just not behind the wheel.
If you are a for hire trucker or motor carrier, brokers and your customers will likely ask to see proof of this coverage.
What does Motor Truck General Liability cover?
- Bodily Injury & Property Damage Liability
- Personal Injury & Advertising Injury Liability
- Medical Payments
- Products-Completed Operations
- Damage to premises rented to you
Here’s 5 Examples of General Liability Claims
1. Bodily Injury and Property Damage Liability
Imagine your driver steps in to assist with loading or unloading the freight, trying to speed up the process or lend a helping hand.
But during the process, the freight gets placed incorrectly, leading to an accident. Unfortunately, this mistake injures an employee, which could bring disruptions, liability problems, and unexpected challenges for your business.
2. Personal Injury and Advertising Injury Liability
Picture this: your logo accidentally looks like another company’s design. They could accuse you of trademark infringement, and in the worst case, even sue you. Dealing with that would be expensive, stressful, and not great for your reputation.
And it’s not just logos—you’ve got to watch out for other risks too, like slander or libel. If your business is found guilty of making harmful statements about someone that is not true, it could mean legal trouble.
3. Medical Payments
Think of Medical Payment coverage as your go-to for handling small accidents—no need to let things spiral into a lawsuit.
For example, if a customer slips in your parking lot, this insurance can cover their medical bills—like doctor visits, x-rays, or minor procedures. It’s a simple way to resolve the issue quickly and fairly, making sure they get the care they need while protecting your business from bigger problems down the road.
4. Products – Completed Operations
Imagine this—what if your freight gets delivered to the wrong place or cargo isn’t secured properly on the dock? Or worse, what if that freight gets added to an end product incorrectly, messing up the whole batch?
Things like that can lead to property damage or even injuries. That’s where this coverage steps in.
Products-Completed Ops has you covered for a number of exposures—so your business stays safe. It’s peace of mind knowing you’re protected if something goes wrong down the line.
5. Damage to Premises Rented to You
Strange things happen—like a driver renting a motel room, lighting up a cigarette, and accidentally starting a fire. Or water accidents that cause unexpected damage. They might seem random, but they can quickly turn into expensive problems.
Who needs Truck General Liability insurance?
If you’re an Owner Operator or Motor Carrier hauling freight, it’s something you should definitely consider.
Here’s why it’s important:
- You work directly with customers and handle their property.
- Your job involves places like loading docks, warehouses, or other third-party sites.
- You hire or subcontract drivers to help move freight.
If any of this sounds like you, General Liability insurance can help protect your business.
Does General Liability Insurance Cover Auto Liability?
No, General Liability won’t cover you in a typical auto accident—you’ll need Commercial Auto Liability for that.
Motor Truck General Liability Insurance covers the unique risks your trucking business faces when you’re not on the road.
It’s also designed specifically for trucking operations only.
So, if you’re running another type of business, like an Artisan Contractor gig on the side, this coverage won’t apply.
How Much General Liability Coverage does a Trucker Need?
The industry standard is $1,000,000 per occurrence and $2,000,000 total per year.
In simple terms, that means you’re covered for up to $1 million per incident, with a cap of $2 million annually.
$1 Mil/$2 Mil is what most brokers and customers expect to see for your proof of general liability coverage.
What does General Liability Usually Cost?
The cost of general liability insurance can vary depending on several factors, such as the size of your business, the type of work you do, and your location.
On average, you can expect to pay between $550 and $2,000 per year per truck.
How do you get General Liability Insurance?
Getting General Liability Insurance is pretty simple.
With companies like GEICO or Progressive, you can usually just add it to your Primary Commercial Auto Liability policy.
Some other trucking insurance companies offer General Liability as a separate policy.
A good trucking insurance expert will handle everything for you and make the process easy.
What other Coverage do Truckers Need?
Commercial Auto Liability and General Liability are the basics when it comes to coverage, but there’s more you should know.
For example, you will need to consider Physical Damage coverage for your truck and certainly Motor Truck Cargo insurance to protect your customer’s freight.
Check out these blogs to dive deeper: What does motor truck cargo cover and Truckers physical damage insurance explained.
Or, if you want a quick cheat sheet, head over to Commercial truck insurance basics to get the full rundown!
Why Choose CIS for Your Commercial Truck Insurance?
Trucking insurance is all we do all day long, and we know the tricks of the trade to get you the best coverage and lowest premium.
Since 2002, CIS has been helping the new startups and small family truckers across the country who Make America Move!
We know you by name and genuinely love hearing from you—whether you’re thinking of adding a new driver, have questions about a quirky cert request, or just want to say “Hi!”
Are you a newbie who might need a little help to get started?
Our free easy cheat sheet How to Get a Motor Carrier Authority has already helped hundreds of Cargo Vans, Sprinters, and Hot Shots kick off their DOT Authority and hit the road with independence. We’re also here to help with Box Trucks, Straight Trucks, Dumps, Agricultural Trucks and Semis.
Still on the fence?
Check out our 5-Star Reviews and see why so many Motor Carriers start—and stick—with CIS!
We’ll make your truck insurance experience quick, simple, and affordable so you can focus on what really matters—hauling freight and making money. Our economy is exploding with new freight opportunities, now’s the perfect time to get rolling.
Want to know more? Head over to our CIS Truck Insurance Blog or get started with a Commercial Truck Insurance Quote Online.
Or just give us a call—we’d love to chat!
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