There’s one point in favor of accident victims who seek compensation after commercial truck accidents. Trucking companies are required to maintain millions of dollars’ worth of insurance coverage, which would go to pay a successful claim.
In many truck accident cases, the truck driver’s employer owns the truck and has vicarious liability for accidents caused by their driver’s negligence and/or their truck’s operational failure. This makes it important for motor carriers operating in Portland, Oregon, to maintain appropriate commercial trucking insurance and financially risky to operate a commercial truck without adequate insurance.
The Federal Motor Carrier Safety Administration (FMCSA) requires all motor carriers to have insurance, surety bonds, or self-insurance for the potential costs associated with bodily injury, property damage, and environmental restoration due to discharge of toxic or environmentally harmful materials. Motor carriers must maintain at least $750,000 worth of coverage, but requirements can range up to $5 million based on gross vehicle weight and commodity. Oregon law mirrors federal requirements.
Oregon Commercial Trucking Insurance Requirements
For trucking companies operating commercial trucks in Oregon, their minimum levels of financial responsibility in case of an accident are:
- $750,000 for for-hire trucks with a gross vehicle weight rating of 10,001 or more pounds hauling non-hazardous property.
- $5 million for for-hire and private trucks with a gross vehicle weight rating of 10,001 or more pounds hauling hazardous substances as defined in 49 CFR 171.8 transported in bulk in cargo tanks, portable tanks, or hopper-type vehicles with capacities in bulk.
- $1 million for for-hire and private trucks with a gross vehicle weight rating of 10,001 or more pounds hauling oil listed in 49 CFR 172.101; or hazardous waste, materials, or substances as defined in 49 CFR 171.8 and listed in 49 CFR 172.101.
- $5 million for for-hire and private trucks with a gross vehicle weight rating of 10,001 or more pounds hauling Hazard Zone A material (material poisonous if inhaled) or highway route-controlled quantities of a Class 7 (radioactive) material as defined in 49 CFR 173.403.
Most trucking companies guarantee their ability to meet these requirements by maintaining various insurance coverages, including:
- Primary liability insurance, which covers property damage, bodily harm and associated expenses when a covered party (the carrier’s drivers) causes an accident.
- Non-trucking liability insurance, which covers a driver who causes an accident while driving the truck outside of business hours.
- Cargo insurance, which covers the loss, damage or theft of cargo being hauled.
- Collision and/or comprehensive insurance, which covers damage to the truck in an accident.
Failure to comply with any FMCSA regulations can result in penalties, including:
- Fines
- Citations
- Suspension or revocation of a truck driver’s Commercial Driver’s License
- Suspension or revocation of a trucking company’s operating authority
- Compliance, safety, and accountability (CSA) points
- Out-of-service orders for vehicles
- Higher insurance premiums
Essential Types of Trucking Insurance for Oregon Truckers
The standard essential insurance coverages a trucking company must maintain are primary liability and cargo insurance.
Primary Liability Insurance
This coverage protects the policyholder financially if they are responsible for someone else’s bodily injuries or property damage (i.e., to a vehicle).
After a collision between a commercial truck and a passenger vehicle, if the truck driver is found to be responsible for the crash, anyone injured in the passenger vehicle could seek compensation for injuries from the trucker’s general liability coverage. The passenger vehicle owner could also seek compensation for damage to their vehicle.
Cargo Insurance
This applies to the goods the truck is hauling. In most cases, a truck for hire is hauling someone else’s property. When cargo is damaged or lost while under their care, such as in a cargo spill, cargo insurance pays the cargo owner for their loss. A trucking company is protected by cargo insurance from when the cargo is loaded until someone signs for it and takes responsibility at the delivery destination.
Per-shipment cargo coverage provides extra coverage for specific shipments. Carriers obtain PSC when they are to haul a load of higher value than their standard cargo insurance covers. Certain types of cargo, like hazardous materials, pharmaceuticals, and live animals, are not protected by standard cargo coverage and require separate insurance.
Trucking companies may also benefit from additional coverages commonly included in commercial trucking insurance policies in Oregon, such as the following.
Physical Damage Coverage
Collision insurance pays to repair or replace a truck that has been in an accident. Comprehensive coverage protects the trucking company’s vehicles against theft or damage caused by vandalism, fire, natural disasters, etc. When there is an outstanding loan on the purchase of a truck, the lender will typically require the owner to maintain collision and comprehensive insurance.
Uninsured/Underinsured Motorist Coverage
This pays the policyholder if they are in an accident caused by a driver who has too little liability insurance to cover their losses or has no insurance at all. Uninsured motorist coverage (UM) is also invoked after hit-and-run accidents when the at-fault driver cannot be identified. UM and UIM coverage pays for medical expenses and property damage, as well as for pain and suffering, and lost wages.
Non-Trucking Use Liability Coverage
This may be useful if a company’s truckers are allowed to use their trucks outside of business hours. A trucker using the big rig (or just its cab) to run errands would be covered if they caused an accident. This is also known as “bobtail insurance” because it covers the use of an 18-wheeler’s cab without a trailer attached.
Environmental Damage Coverage
This protects the company in the event of a hazardous materials cargo spill. If the trucking company was found responsible for a “hazmat” spill, it would be liable for the cost of cleanup and/or mitigation of damage to real property, including wetlands, due to the spill.
What Affects Commercial Trucking Insurance Rates?
Insurance companies that sell insurance coverage to trucking companies base their premiums on their perception of the risk they take by insuring the policyholder, just as they do with individual drivers. A Portland, OR, trucking firm’s insurance premiums may be adversely impacted by the following:
- Drivers’ Records – A motor carrier with a history of accidents or traffic violations among its drivers should expect higher premiums.
- Driver Experience – An insurance company will charge more if a carrier has inexperienced truckers behind the wheel of its vehicles, just as newly licensed teens cost more to insure. More experienced drivers are expected to be better at handling adverse conditions, such as heavy traffic, roads with steep grades, inclement weather, etc.
- Condition of Trucks – New trucks will cost more to insure because they’ll require collision and comprehensive insurance, and premiums will be based on the trucks’ value. Trucks will cost more to insure as they near a decade of service and become less reliable and/or if safety violations or defects are reported in FMCSA roadside inspections.
- Cargo – The type of cargo being transported affects insurance rates. Expensive cargo or hazardous materials are more expensive to insure than other goods.
- Safety Record of the Trucking Company – To meet the FMCSA’s safety fitness standard, a motor carrier must demonstrate that it has adequate and effective safety management controls in place to ensure compliance with the safety and hazardous materials regulations that apply to its operation. The FMCSA may issue one of three safety ratings (Satisfactory, Conditional, Unsatisfactory) after a Rated Investigation (compliance review), and insurers should be expected to increase premiums for carriers who do not meet conditions for a Satisfactory rating.
How to Find the Right Commercial Trucking Insurance in Portland
It should be no problem finding an insurance agency that can sell you commercial trucking insurance in Portland, Oregon. An independent insurance agent can help you choose from several commercial trucking insurance companies that provide the types of insurance you need. An agent should ask you about your company so they can recommend the types of trucking insurance that your business should have.
It is best to work with a qualified insurance agent and get quotes from multiple insurance companies specializing in commercial trucking. Read online reviews or talk to others in the industry to learn about different companies’ reputations.
Look for companies that can offer customized insurance policies. That means they will put together a special package of coverage for your company.
Once you have several quotes, consider your budget and look for the best rates. Ideally, you want to work with the company that offers the best prices while also offering comprehensive and reliable protection for your commercial trucks.
If You’ve Been in a Commercial Trucking Accident, We Can Help
Trucking companies know the importance of having comprehensive commercial trucking insurance coverage if they operate in Oregon. Depending on the circumstances surrounding a truck accident, the injured party will likely be eligible to seek compensation from the trucking company and/or truck owner for their losses.
A Portland truck accident lawyer from Rizk Law can provide you with a free, no-obligation consultation about your options and prospects for a truck accident claim. Trucking companies are well-insured by law, and our truck accident law firm can help you seek full financial recovery for your medical bills, lost earnings, pain, suffering, and more. Contact Rizk Law today.
