Tucker Blog

Tuesday, March 1, 2011

Proposed Bill Would Increase Public Liability Requirement for Carriers

A proposed bill, supported by broker C.H. Robinson Worldwide, may raise public liability insurance requirements for “for-hire, non-hazardous freight” hauling carriers from $750,000, to as high as $2 million. If passed, carriers will be better insured, and their insurance dollars will go farther. But some estimate the additional insurance premium may be $1400-2,000 per truck—a huge tax to large and small fleets. This jeopardizes the health of the industry at a tough time. A larger insurance requirement will not in itself improve safety, but it does increase costs and may reduce equipment availability, and speed consolidation.