The current Federal Minimum Insurance coverage requirement for motor carriers is $750,000 for Public Liability, Bodily Injury, Property Damage and Environmental Restoration. But that minimum level of insurance may be a thing of the past, if the House of Representatives has anything to say about it.
On June 17, 2020, The House of Representatives passed an amendment seeking to raise the minimum requirement to $2 Million. That amount will obviously be a major financial burden on smaller carriers and that concern has already been voiced by various trucking groups representing the industry. And this major change at a time when most motor carriers are struggling just to stay afloat as a result of the Covid-19 Pandemic.
Get ready to hear a great deal of debate on both sides of the coin as this is a very sensitive issue. I find this mandate totally illogical. It is absurd that the Federal Government would be pushing for this change at a time when the industry is struggling mightily. We will have to wait and see how it all pans out.
Read more about this important topic from our friends at Freight Waves
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