Meeting Wisconsin Trucking Insurance Requirements just got easier as a brand new insurance company lowers premiums to compete for Motor Carriers.
Starting a new Motor Carrier trucking business and establishing your own operating authority is expensive because of the high insurance limits required by FMCSA.
FMCSA is the Federal Motor Carrier Safety Administration that oversees the DOT – Department of Transportation.
WisDot – The Wisconsin Department of Transportation – follows FMCSA guidelines for interstate trucking operations.
When you establish your DOT operating authority you will need to provide proof of insurance to FMCSA and WisDot.
Here’s how the proof of insurance for a new DOT operating authority works:
- After you register with FMCSA as a new Motor Carrier you will receive your DOT number.
- Your insurance company attaches your proof of insurance to that DOT number and submits it to FMCSA.
- This proof of insurance is called your BMC-91X Filing.
- The MCS-90 is just your insurance company promising FMCSA you have coverage in place.*
- Your insurance company also sends your Form E certificate of insurance to WisDot.
- Within a month, FMCSA issues your actual MC number which is your approved Motor Carrier interstate operating authority.
*The MCS-90 works like a bond where your insurance company promises to protect the public at all times with your BMC-91X.
That’s why you can’t immediately cancel this type of insurance.
FMCSA requires a 35 day lag time so that all parties know when insurance coverage is no longer in place.
If any of this is confusing, it’s understandable but no worries – your professional Truck Insurance Broker will take care of you:)
But don’t jump into your new DOT Operating Authority just yet!
Take the time to get your ducks in a row.
Make sure the insurance costs and all other overhead costs fit your budget.
Your first step is to make contact with a professional Truck Insurance Broker.
She’ll show you the ropes by guiding you step by step into your new venture.
You’ll get a pretty good idea of what everything will cost BEFORE you spend the money on your DOT number.
There are pros and cons to becoming a new motor carrier that she can talk through with you.
Sometimes it’s even better to hold off on a new DOT and haul for someone else for a year to see if you even like trucking!
Why is Commercial Trucking Insurance in Wisconsin so expensive?
Compared to other states, Wisconsin is a very attractive location to set up a new Motor Carrier authority.
The main reason ALL commercial trucking insurance is expensive is that losses continue to be higher than income.
This is due to accidents and lawsuits.
But Wisconsin is still a great state compared to others because it’s on the front end of new insurance options.
There’s a brand new trucking insurance company competing for Motor Carriers in Wisconsin!
This new financial powerhouse has launched a new commercial auto liability package that is knocking the socks off the main truck insurance competitor.
We’re excited that CIS is one of the select hand picked professional independent trucking insurance agencies licensed to market this product.
We’d love to share the details with you:
Wisconsin GEICO Commercial Truck Insurance
15 Minutes Can Save You BIG $$$ on your Trucking Insurance!
Insurance limits for interstate Wisconsin Trucking For Hire
Wisconsin follows FMCSA guidelines for Interstate Trucking for Hire Insurance:
Cargo Van and Sprinter Insurance – minimum of $300,000 CSL Commercial Auto Liability
Hot Shot Trucking Insurance and larger units – minimum of $750,000 CSL Commercial Auto Liability
CSL = Combined Single Limit
In the real world, Interstate Brokers and your customers will require $1,000,000 CSL Commercial Auto Liability.
So when you talk with your professional trucking insurance broker understand that she will review both the minimum requirements to activate your DOT and also the likely eventual industry standard limit of $1,000,000. This helps you to understand your actual overhead.
What IS Commercial Auto Liability for Truckers?
Think of Liability as you’re liable to get sued.
Liability insurance protects you when you’re driving along and hit someone or something.
Liability Insurance consists of 2 parts, Bodily Injury and Property Damage.
Bodily Injury kicks in when you hit someone and cause injury or death.
Property Damage kicks in when you hit another car, a building, bridges, signs and other solid objects.
For truckers, Bodily Injury and Property Damage is Liability insurance that comes as CSL, or a combined single limit.
So if you have $1,000,000 in Liability, you can be sued or pay damages up to that total amount under Bodily Injury or Property Damage in any combination.
This is Commercial Auto Liability, when you’re driving your truck.
When you’re NOT driving your truck, there is other Liability.
General Liability insures Truckers for other things that can happen while working.
The best example is mishaps during loading or unloading.
Here are some other examples of where General Liability for Truckers comes into play.
A lot of brokers and customers have been requiring this additional coverage so it’s important to know what it is when they request it.
While it’s not required by FMCSA for your DOT operating authority, it’s becoming common enough for you to get a ballpark on cost ahead of time.
Thankfully, the premium for General Liability Insurance is quite affordable and way less than Commercial Auto Liability Insurance.
Here are some Wisconsin Trucking Insurance extras:
Uninsured/Underinsured Motorist Coverage (UM/UIM) covers you and your passengers if someone hits you but doesn’t have enough insurance on their end.
Medical Payments (Med Pay) covers you and your passengers for medical and funeral costs.
Your professional Truck Insurance Broker will also review Motor Truck Cargo insurance with you at the same time you discuss commodities hauled on your DOT application.
Physical Damage Insurance for Truckers
There are 2 parts to Physical Damage Insurance, Comprehensive and Collision.
Collision – This covers your truck if you cause an accident where it is damaged or rolls over.
Comprehensive (Comp) – This covers your truck for theft, wind, hail, fallen trees, animal hit etc.
The value of the Physical Damage Insurance you purchase can be based on it’s Actual Cash Value (ACV) or Stated Amount.
You set the limit of the Stated Amount on your truck insurance policy.
So it’s important to understand that the insurance company will only pay up TO the Actual Cash Value of your truck.
So don’t overinsure your truck with a stated amount higher than it’s actual value or you will be throwing money out the window.
Do remember to add the value of any permanently attached equipment to the stated amount when talking with your truck insurance broker, but no worries, she’ll remind you of that as well:)
Would you like more info before you take the next step into establishing your new motor carrier authority?
Check out our other blogs at our CIS Commercial Truck Insurance Blog for Owner Operators.
Or just give us a call at CIS at 330-864-1511.
We love to chat with new start up Motor Carriers and watch you grow into success!
