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Originally Posted by BA
Thanks for the great explanation GMAN, I didn't see it before I made my last reply. So the bottom line just being adequately insured for the cargo and liability. If you lease with a company, do you still have to get the cargo insured, or do they supply it?
Having an agent in all 48 does sound complicated :? I take it the insurance for the trucking industry is set up to accommodate that?
You only need liability and cargo insurance if you run your own authority. When you have your authority you are considered a carrier even if you only have one truck. If you lease to a carrier as an owner operator, the carrier provides the liability and cargo insurance. You will normally be required to have bobtail or unladen liability insurance when you lease to a carrier. The minimum amounts of coverage to qualify for common Federal Motor Carrier authority is $750,000 in liability and $5,000 in cargo. Most shippers and/or brokers require $100,000 in cargo. Minimum coverage amounts could vary according to the type of operation you run. If you are in a specialty area of the business or set up to haul hazmat you could be required to carry more insurance than listed. I carry more than the minimum requirements, but it is not necessary for most loads.
If you are a member of OOIDA, they can do the registered agent filing for you at no charge. There are services which charge a fee. I have heard of some as little as $35, but I can't see paying someone for something which you can get for free as a member.