Return to Issues & Policies > TCA Policies > TCA Policy Transportation

Insurance

A sound transportation system requires adequate insurance to cover potential liability exposure risks. These include public liability and property damage, workman's compensation, cargo loss and damage, and umbrella or excess coverage above the retention sometimes used by self-insurers.

• As national policy, motor carriers should be required to have liability coverage adequate to protect the public, at reasonable minimum limit levels.
• Liability insurance should be available at reasonable and relatively stable rates.  Those rates should be reflective of the claims and safety experience of the motor carrier.  Policies should not be cancelled without adequate notice to the insured.  Unusual and arbitrary exclusions should be discouraged.  State assigned risk pools should at least provide coverage to meet Federally-imposed minimums.  Assigned risk pools should be self-supporting for the claims of its policyholders.
• Congress should clarify the legal definition of “sudden and accidental” environmental damage, to permit insurance companies to assess the risk and provide adequate insurance.
• The insurance industry must avoid unreasonable increases in premiums or arbitrary cancellations if such actions threaten to disrupt interstate commerce.
• Cooperation between the insurance and trucking industries is based upon mutual trust.  Financial and operating data of both industries must be mutually shared.
• A motor carrier should be allowed to self-insure under certain controlled conditions if it can show an ability to meet its obligations.  Regulations and procedures for self-insurance should be uniform among the various controlling agencies.
• Carriers should be permitted to use surcharges to recoup their insurance costs.  Carriers should be permitted to exclude from the computation of their gross revenues, the revenues they derive from their surcharges.  The revenues received from the surcharges should inure to the benefit of the person actually incurring the expense.
• Motor carriers should not be required to purchase or maintain insurance coverage, such as uninsured motorist coverage, that is unnecessary or duplicative.