Primary Liability vs. General Liability Insurance

With over 51 million tons of freight moved daily by road, the trucking industry is the backbone of the nation’s economy. However, operating a truck or fleet comes with its own set of risks. To ensure your business stays protected, having comprehensive truck insurance through a trusted provider like U Trust Insurance is crucial.

For owner-operators and fleet managers, securing the right insurance coverage is similar to owning a personal vehicle but on a larger scale. Understanding the distinction between Primary Liability and General Liability Insurance is a key part of building a robust insurance plan.

Primary Liability vs. General Liability Insurance

While both types of insurance are vital, they serve different purposes. Primary liability insurance covers accidents on the road, ensuring protection from damages your truck may cause to others. General liability insurance, on the other hand, covers off-the-road incidents, such as injuries or property damage at your business premises. Let’s explore these two types of coverage in detail.

What is Primary Liability Insurance?

Primary liability insurance is the cornerstone of any commercial trucking insurance policy. It’s a legal requirement for operating a trucking business and covers damages your truck causes to public property or other vehicles in an accident.

However, it doesn’t cover your own truck, personal injuries, or damages caused by theft, fire, or vandalism. Additional coverage is needed to protect these valuable assets.

Primary Liability Requirements for Trucks

The Federal Motor Carrier Safety Administration (FMCSA) sets the minimum primary liability insurance limits:

$750,000: Required for most trucks transporting general goods.
$1,000,000: Commonly required by brokers and mandatory for auto haulers.
$5,000,000: Required for trucks carrying hazardous materials.

While these are minimums, many businesses opt for higher limits to meet industry standards and protect against significant losses.

What’s Not Included?

Primary liability insurance doesn’t cover theft, damage to your truck, or injuries to your driver. Its primary function is to protect you against liability claims for damages or injuries caused to others. For comprehensive protection, additional policies are required.

What is General Liability Insurance?

General liability insurance protects trucking businesses against non-driving risks. This includes customer injuries, property damage, and even claims of advertising infringement. For example, if someone slips and falls at your office or a driver accidentally damages a client’s property during unloading, general liability insurance steps in to cover these costs.

General Liability Coverage Includes:

Customer injuries (e.g., slips and falls).
Customer property damage caused by your employees.
Advertising-related claims, such as copyright infringement or slander.

General Liability Claims in Action

Here are examples of incidents general liability insurance might cover:

A seller slips and falls in your terminal, resulting in medical expenses.
A driver using a forklift accidentally damages a client’s trailer.
Your business is sued for unintentionally using a competitor’s logo.
A fuel truck mistakenly delivers fuel to the wrong tanks, damaging several vehicles.

Limits of General Liability Insurance

Most general liability policies offer a per-occurrence limit of $1 million and an annual aggregate limit of $2 million. This means coverage is capped at $1 million per claim, with a total maximum of $2 million for all claims during the policy term.

Why General Liability Matters

General liability insurance is often more affordable than auto liability coverage, yet it offers broad protection against risks many trucking businesses overlook. It should be an essential part of your risk management strategy.

Protect Your Trucks and Investments

At U Trust Insurance, we specialize in providing comprehensive coverage tailored to the trucking industry. Whether you’re an independent owner-operator or managing a large fleet, we’re here to help you protect your business, assets, and reputation.

Contact U Trust Insurance today by calling 📞 864-519-4010 to explore coverage options that give you peace of mind and let you focus on growing your business.