Blog · Insurance & risk
General Liability Insurance for Truckers vs Auto Liability
General liability insurance for truckers covers business risks off the truck. See how it differs from auto liability and why shippers ask for it.
Questions about how this applies to you? Talk to a licensed agent who ran his own authority.
Your truck policy covers what happens on the road. But what about the rest of your business? General liability insurance for truckers covers a different kind of risk: harm your business causes to other people off the truck. Some shippers, warehouses and contracts ask for it. Here is the difference between the two, with everyday examples.
Auto liability: what the truck does on the road
Auto liability is the core of a truck policy. It is about harm your truck causes to other people and their property while you use it. For example, a crash where your truck hits another car. Most for-hire interstate carriers must file proof of this coverage with FMCSA to keep their authority active.
Auto liability does not cover your own truck. That is physical damage coverage. It does not cover the freight. That is cargo coverage.
General liability insurance for truckers: the business off the truck
General liability, often called GL, is about business risks that are not about driving. Common examples people ask about:
- Your yard or lot. A visitor trips on equipment in your yard and gets hurt.
- Your office. A customer slips at your front door.
- A shipper's dock. While you wait for your load, something you do damages the customer's property, and it is not about driving the truck.
- Advertising problems. Some GL policies include coverage for claims such as using someone else's image in an ad without permission.
Whether a certain event is covered depends on the policy wording. Many GL policies exclude harm that comes from using an auto, because auto liability is meant to handle that. Where one ends and the other begins can be tricky. That is why reading both policies matters.
Why shippers and contracts ask for general liability
Many shippers, warehouses, ports and large customers send a contract before you can load. Some of those contracts ask you to show certain coverages, and GL is often one of them. They may ask for a certificate of insurance, called a COI, showing it.
If you do not have GL and a customer asks for it, you might miss the load. If you do have it, your agent can send a COI. Read the contract carefully. It may ask for specific limits or wording, like adding the customer as an additional insured.
How to decide if you need it
Ask yourself:
- Do you have a yard, shop or office where people come by?
- Do your shippers or customers ask for GL in their contracts?
- Do you do work besides driving, like loading, unloading or storing freight?
- Do you plan to grow and work with bigger customers?
If you say yes to any of these, talk to your agent. They can explain what a GL policy would and would not cover for your business.
Have these ready when you ask: the address of your yard or office, what work you do besides driving, and a copy of any contract that asks for GL. With that, your agent can look for the right policy faster.
Mistakes to avoid
- Thinking auto liability covers everything. It is focused on the use of the truck.
- Signing a contract without reading the insurance part. Some ask for coverages you do not have.
- Assuming GL covers the truck. It usually does not.
- Waiting until the load is waiting. Getting a new policy can take time.
To see how all the pieces fit, read our trucking insurance coverage guide. If a broker or shipper needs proof fast, our same-day COI service can help.
When to call us
Did a shipper ask for general liability? Call TCZ Insurance Agency at 956-526-6727. Send us the contract and we will help you understand what it asks for and get you a quote.
Common questions
Is general liability required by FMCSA? FMCSA's filing rules are about auto liability for the truck. GL is usually a business choice or a contract requirement. Read your contracts.
Does general liability cover a crash with my truck? Usually no. Crashes while driving fall under auto liability. Check your policy wording.
Can I add general liability to my truck policy? Some insurance companies offer package policies and others write GL separately. Your agent can tell you what is available for your operation.