How Insurance Coverage Works in Commercial Trucking Accidents

If you have ever been involved in a collision with a semi-truck or other large commercial vehicle, you probably already know that these accidents are nothing like ordinary car crashes. The injuries tend to be more severe, the vehicles involved are far more complex, and the insurance picture is a completely different beast. Understanding how commercial trucking insurance works can help you make sense of what you are up against and why having strong legal representation matters so much.

Federal Law Sets the Baseline for Trucking Insurance

Unlike personal vehicles, commercial trucks are regulated at the federal level by the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA sets minimum insurance requirements that carriers must maintain to legally operate on public roads. Under 49 C.F.R. § 387.9, the required minimum liability coverage depends on the type of cargo being hauled. For most general freight hauled by large trucks, carriers must carry at least $750,000 in liability coverage. For vehicles transporting hazardous materials, that minimum can jump to $1,000,000 or even $5,000,000 depending on the substance involved.

These numbers sound large, but given the catastrophic injuries that trucking accidents often cause, including spinal cord damage, traumatic brain injuries, and wrongful death, policy limits can be reached or even exceeded in serious cases. That is why understanding every layer of available coverage is so important.

Multiple Insurance Policies May Apply to Your Claim

One of the most confusing aspects of commercial trucking accidents is that there is rarely just one insurance policy in play. Depending on how the trucking operation is structured, any of the following policies could potentially be involved:

• The trucking company’s primary commercial liability policy
• A separate cargo insurance policy covering the freight being transported
• The truck driver’s own personal auto or commercial policy, if they are an owner-operator
• A non-trucking liability policy, which covers certain drivers when they are operating the truck for personal rather than business purposes
• Umbrella or excess liability policies held by the trucking company or its parent company
• Your own underinsured motorist (UIM) coverage, if the at-fault party’s policy is not enough to cover your losses

Sorting through which policies apply and in what order requires a careful analysis of the trucking contracts, the driver’s employment status, and the circumstances of the crash itself.

The Driver’s Employment Status Changes Everything

Whether a truck driver is classified as an employee of the trucking company or as an independent contractor can have a major impact on your claim. When a driver is a direct employee, the trucking company’s liability policy typically covers accidents that occur during the course of employment. When the driver is an independent owner-operator, the situation becomes more complicated.

Owner-operators often lease their trucks to motor carriers under agreements that affect who is responsible for providing insurance coverage. The FMCSA has rules that require motor carriers to maintain liability coverage even when using leased vehicles and drivers, but sorting through these lease arrangements and pinpointing coverage can be a significant legal challenge. Trucking companies and their insurers know this complexity well, and they may use it to deflect or delay your claim.

Why Contact Our Sioux Falls Truck Accident Attorneys

After a commercial trucking accident in South Dakota or Sioux Falls, you are not just dealing with one driver and one insurance company. You may be up against a large corporation, a team of insurance adjusters, and lawyers whose entire job is to minimize what you receive. The average person should not have to navigate that alone.

At Hoy Law, we have the experience and resources to dig into the full insurance picture of your case, identify every available source of compensation, and push back aggressively against lowball offers. If you need help from a dedicated Sioux Falls truck accident attorney, we are ready to help. Contact Hoy Law today to schedule your free consultation and find out how we can fight for the recovery you deserve.

Source:

ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387/subpart-A/section-387.9