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Trucking Insurance Terms

Understand Common Terms in the Trucking Industry

Commercial Auto Liability 

Coverage that provides protection against legal liability arising out of the ownership, maintenance, or use of any insured automobile. The insuring agreement agrees to pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident resulting from the ownership, maintenance, or use of covered auto.  For interstate motor carriers, this coverage is required by the Federal Highway Authority and is required to be no less than $750,000.  Upon a policy being issued, the insurance carrier will complete the necessary filings with the FMCSA.

Commercial General Liability 

Coverage pertaining to claims arising out of the insured's liability for injuries or damages caused to ownership of property, manufacturing operations, contracting operations, sale or distribution of products, and the operating of machines as well as professional services. Based on premises & operations liability with Trucker endorsement for portability of liability due to truckers’ unique exposures.

Contingent Liability 

Provides indemnity and defense to a truck broker for third-party liability claims. 

Contingent Cargo

Provides indemnity and defense to a truck broker for third-party cargo claims. 

Commercial Driver's License

Often referred to as a CDL, is a license that authorizes an individual to operate commercial motor vehicles over 26,000 pounds gross vehicle weight.

Declarations Page (Dec Page)

Also known as an auto insurance coverage summary, this page is provided by your insurance company and lists the types of coverage you have purchased, the limit for each coverage, the cost for each coverage, specified vehicles covered by the policy, types of coverage for each vehicle covered by the policy, and other information applicable to the policy



 A deductible is the dollar amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Deductibles always are selected when you purchase an insurance policy.

Electronic Funds Transfer (EFT)

An EFT is a payment method in which funds are automatically deducted from a customer's checking account to pay bills on a regularly scheduled basis. Customers must select the EFT payment method and authorize payments in advance to use this system to pay their bills.


A clause added to an insured's policy that changes the coverage provided and is considered to form part of the insurance contract.



A filing is like a certificate of insurance issued by an insurer that provides proof of specific insurance coverage. There are both federal filings and state filings.  Federal filings are submitted to the Federal Highway Administration. They often are required for interstate transportation of goods, people, or hazardous materials.  State filings are submitted to a specific state's Department of Transportation or other governing body. They often are required for intrastate transportation of goods, passengers, or hazardous materials.


Motor Truck Cargo

This coverage protects the trucker in case of loss or damage to the freight they are hauling.

Non-Trucking Liability

Non-Trucking Liability, or NTLprotects the public from bodily injury or property damage when an owner-operator who is leased to an authorized carrier is not under dispatch from that carrier.

Occupational Accident (Occ/Acc)

Product designed specifically for owner-operators in the trucking industry.  In most states, by being self-employed, owner-operators can choose not to purchase workers' compensation coverage. While not the same as workers' compensation, occ/acc is very similar in scope and intent. For those who qualify, Occ/Acc is a lower-cost alternative.

Physical Damage

This is coverage for your tractor and trailer.  It protects against loss or damage to your covered vehicle resulting from the impact of another vehicle or object.

Trailer Interchange

Trailer Interchange is coverage for the liability of truckers for loss or damage to non-owned trailers and equipment that are in the insured's possession under a written trailer interchange agreement.

Workers Compensation - Workers' compensation is a type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement. It also protects companies from being sued by employees for the workplace conditions that caused such an injury or illness.

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