[Moonshine454]

We don't need cargo insurance to haul dirt, sand, rock etc. We have a 500,000 dollar liability policy along with the coverage that the bank wanted for the loan. What ever we have better cover it because it sure costs enough.
Plus we have another commercial policy for oilfield work.

[GMAN]

I forgot you were hauling dirt, Moonshine. You should be good to go in Texas with just the $500,000 liability policy.

[Moonshine454]

Man I was sweating that one, I was pretty sure I didn't need cargo ins. . Thanks for the confirm.

[GMAN]

It looks like the only people who are required to have cargo insurance are tow trucks. This is off of the TXDOT website:

.

Proof of Insurance (A household goods carrier has different insurance coverage requirements.)

A motor carrier must file proof of insurance for each vehicle required to be registered.

A motor carrier’s insurance company maintains proof of insurance with TxDOT by filing the appropriate insurance form(s) on behalf of the motor carrier.

The motor carrier is ultimately responsible for making sure the proper form(s) are filed with TxDOT on a timely basis

Automobile Liability Insurance Requirements Vehicle Type
Minimum Coverage
1 Tow truck – (gross vehicle weight 26,000 lbs. or less) $ 300,000
2 Bus – designed or used to transport more than 15 passengers (including driver), but less than 26 (excluding driver) $500,000
3 Bus – seating capacity of 15 passengers or less (including driver) operated by a foreign motor carrier and foreign motor private carrier defined in 49 USC §13102 $1,500,000
4 Bus – designed or used to transport 26 passengers or more (excluding driver) $5,000,000
5 Bus – seating capacity of 16 passengers or more (including driver) operated by a foreign motor or private carrier defined in 49 USC §13102 $5,000,000
6 Farm truck – gross vehicle weight 48,000 pounds or more $500,000
7 Commercial motor vehicles including tow truck (gross vehicle weight in excess of 26,000 lbs) $500,000
8 Commercial motor vehicle – defined in 49 CFR §390.5, operated by a foreign motor or private carrier defined in 49 USC §13102 $750,000
9 Commercial motor vehicle – oil listed in 49 CFR §172.101; hazardous waste, materials, and substances defined in 49 CFR §171.8 and listed in 49 CFR §172.101, but not mentioned in item #10 below $1,000,000
10 Commercial motor vehicle – hazardous substances, as defined in 49 CFR §171.8, transported in cargo tanks, portable tanks, or hopper-type vehicles with capacities in excess of 3,500 water gallons; or any quantity of Division 1.1, 1.2, and 1.3 materials, any quantity of Division 2.3, Hazard Zone A material; in bulk Division 2.1 of 2.2; or highway route controlled quantities of a Class 7 material, as defined in 49 CFR §173.403. $5,000,000


On-hook cargo insurance. In addition to automobile liability insurance, a tow truck operator that performs nonconsent tows is required to maintain on-hook cargo insurance in the amount of at least $50,000 per truck.

Workers’ Compensation or accidental insurance. A motor carrier whose primary business is transportation for compensation or hire and who operates between two or more incorporated cities, towns, or villages is required to provide for all of its employees either Workers’ Compensation insurance or accidental insurance. Accidental insurance requirements are described on the following table.

Accidental Insurance Requirements Type of coverage
Minimum
Coverage
Medical expenses and coverage for at least 104 week $ 300,000
Accidental death and dismemberment, 70% of employee's pre-injury income for not less than 104 weeks when compensating for loss of income $100,000
Maximum weekly benefit $500


Proof of Workers’ Compensation or accidental insurance is not filed with TxDOT.

Self-insurance. To qualify as self-insured, a motor carrier must file with TxDOT an “Application for Qualification as a Self-Insurer” containing a true and accurate statement of the motor carrier’s financial condition and other evidence that establishes its ability to satisfy obligations for bodily injury and property damage liability without affecting the stability or permanency of its business. To obtain an application, call (800) 299-1700 (option 3, then 1).

TxDOT may accept United States Department of Transportation evidence of the motor carrier’s qualifications as a self-insured.

Contact TxDOT at (800) 299-1700 (option 3, then 1) for additional criteria needed to qualify as self-insured.

[Moonshine454]

Thanks GMAN.

[GMAN]

Anytime, Moonshine.

[pepe4158]

Ummm Texas intra-state requires Texas authtority?....right?....an oddball like California?
If so wouldnt you be just fine with only Texas authority?

[Jackrabbit379]

Texas might be odd, but California is weird. :P

[GMAN]

Originally Posted by pepe4158

Ummm Texas intra-state requires Texas authtority?....right?....an oddball like California?
If so wouldnt you be just fine with only Texas authority?

There are about 11 states which require intrastate authority. Texas and California are a bit more restrictive about it. The other states are not nearly as expensive as Texas and California. Unless you pick up and deliver in the same state, you aren't required to have authority in those states. However, in Texas you are required to have intrastate authority to get over-sized permits regardless of whether the load stays instate or not. Both California and Texas are very large. They could be a country in themselves. Texas was a country before it was a state. It is the only state in the union to have that distinction. The economies of both states are huge. Both could be virtually self sufficient from the rest of the country. It is still much easier to do business in Texas than California. There are much fewer regulations and they are much more friendly toward trucking than California. Rates are usually better, too.

[Jackrabbit379]

I used to haul over-sized loads. I pulled a combine when I went on wheat harvest. I havent kept up with the regs on over-sized loads lately. At one time, I remember hearing, if you pull an over-sized trailer, (such as a combine trailer) if you were empty, you had to have an over-sized permit. When loaded you didnt have to have a permit. (in Texas) That doesnt make sense, but if I remember right, that was the reg.