TRUCK ACCIDENTS
Only common carriers (like trucking companies) are required to have cargo liability insurance within the federal jurisdiction. The insurance should be set at the minimum limits of (1) $5,000 for loss of or damage to property carried on any one motor vehicle and (2) $10,000 for loss of or damage to or aggregate of losses or damages of or to property occurring at any one time and place.
The BMC-32 endorsements show that the insurer is obligated to pay the consignee for all the losses for which the cargo carrier is liable legally. If goods are lost or damaged by the trucker and the trucker would not or could not pay for the loss, then the shipper could make a claim on the insurance company and be compensated.
Motor carriers of property operating commercial motor vehicles in interstate, foreign, or intrastate commerce, and for-hire carriers of passengers operating in interstate or foreign commerce must have at least the minimum amount of insurance required by law. The current accident liability amount for trucking companies is $750,000.
DISCLAIMER. The content of this blog expressing the author’s own views and based on the Illinois and federal law shall not serve as a legal advice, form an attorney-client relationship, be relied upon as reflecting the most current law status or the source for legal arguments, and not to be used for any applications except for public education purposes. The content is provided without any warranty and shall not be responsible for any content errors and any use-related sequential damages. Each state’s laws may differ from the laws discussed herein. Please consult with an attorney licensed in the recipient's state as to all matters mentioned in this website. The content contained herein shall not be reproduced, distributed, republished, or retransmitted without the express written consent of Parad Law Offices, P.C.