What Insurance are Trucking Companies Required to Have in the State of Florida?
As a trucking company operating in the state of Florida, it is crucial to understand and comply with the insurance requirements mandated by law. Failure to carry the necessary insurance coverage can lead to severe legal and financial consequences, putting your business at risk and potentially jeopardizing your ability to operate. At The Law Offices of Keith Bregoff, we are dedicated to educating our clients and the public about these important regulations.
Liability Insurance
The most critical insurance coverage for trucking companies in Florida is liability insurance. This type of insurance protects the company in the event of an accident caused by one of its trucks, resulting in property damage or bodily injury to others. Florida law requires trucking companies to carry a minimum level of liability insurance, which varies depending on the type of cargo being transported. It is important to note that these are minimum requirements, and companies may choose to carry higher levels of coverage for added protection.
General Freight
For trucking companies hauling general freight, the minimum liability insurance requirement is $750,000. This coverage applies to vehicles with a gross vehicle weight rating (GVWR) of 10,000 pounds or more. General freight includes a wide range of non-hazardous goods, such as consumer products, manufacturing materials, and agricultural commodities. Trucking companies must ensure that their liability insurance meets or exceeds this minimum threshold to operate legally in Florida.
Hazardous Materials
If a trucking company transports hazardous materials, the liability insurance requirements are significantly higher. The minimum coverage for trucks carrying hazardous materials is $5,000,000. This increased coverage is necessary due to the potential for extensive damage and injury in the event of an accident involving hazardous substances. Hazardous materials can include flammable liquids, explosives, toxic chemicals, and radioactive materials, among others.
Cargo Insurance
In addition to liability insurance, trucking companies in Florida must also carry cargo insurance. This type of insurance protects the goods being transported by the company in the event of theft, damage, or loss. The amount of cargo insurance required depends on the value of the goods being shipped and the terms of the contract between the trucking company and its clients. Cargo insurance provides peace of mind for both the trucking company and its customers, ensuring that their goods are protected during transit.
It is essential for trucking companies to carefully review their contracts and ensure that they have sufficient cargo insurance coverage to meet their obligations. In some cases, clients may require higher levels of coverage than the minimum mandated by Florida law.
Workers’ Compensation Insurance
Another critical insurance coverage for trucking companies in Florida is workers’ compensation insurance. This insurance provides benefits to employees who are injured or become ill as a result of their job duties. In Florida, all businesses with four or more employees, including trucking companies, are required to carry workers’ compensation insurance. This coverage is essential for protecting the health and well-being of your employees, as well as shielding your company from potential legal action.
Workers’ compensation insurance covers medical expenses, lost wages, and rehabilitation costs for injured employees. It also provides death benefits to the families of employees who lose their lives in work-related accidents. Trucking companies must ensure they have the appropriate level of workers’ compensation coverage based on the number of employees and the nature of their work. Failing to carry this mandatory insurance can result in severe penalties and legal consequences.
Uninsured/Underinsured Motorist Coverage
While not required by Florida law, it is highly recommended that trucking companies carry uninsured/underinsured motorist coverage (UM/UIM). This type of insurance protects the company and its employees in the event of an accident caused by a driver who has insufficient or no insurance coverage. Given the high costs associated with truck accidents, including medical expenses, property damage, and potential legal fees, having UM/UIM coverage can provide an invaluable safety net.
UM/UIM coverage can help pay for medical expenses, lost wages, and other damages when the at-fault driver’s insurance is inadequate or nonexistent. This additional layer of protection can help trucking companies mitigate the financial impact of accidents caused by uninsured or underinsured motorists. While not mandatory, it is strongly advised that trucking companies discuss the benefits of UM/UIM coverage with their insurance providers and consider adding this coverage to their policies.
Contact Our Legal Team for Help
Operating a trucking company in the state of Florida comes with significant responsibilities, including maintaining the proper insurance coverage. At The Law Offices of Keith Bregoff, our experienced attorneys are well-versed in the insurance requirements for trucking companies in Florida. Get in touch with us today for legal help by calling (772)-492-8967.
