Texas General Lines — Property and CasualtyCommercial LinesMedium
A client operates a commercial trucking company with a fleet of 20 semi-trucks. They frequently transport goods for various customers across state lines. They are most concerned about liability for bodily injury and property damage caused by their trucks, as well as physical damage to their own vehicles. Which commercial auto coverage form is specifically designed to meet these needs for a 'for-hire' trucker?
- AGaragekeepers Coverage Form
- BBusiness Auto Coverage Form (BACF)
- CMotor Carrier Coverage Form
- DDrive Other Car Coverage
Show answer & explanationAnswer & explanation
Correct answer: C. Motor Carrier Coverage Form
The Motor Carrier Coverage Form is specifically designed for businesses that transport goods or people for hire, covering both liability and physical damage exposures for their fleet.
Why the other options are wrong
- A. Garagekeepers Coverage protects against damage to customers' vehicles left in the care of a garage, not the trucking company's own fleet or its liability.
- B. While the BACF covers liability and physical damage, it's primarily for businesses using vehicles in their own operations, not typically for 'for-hire' motor carriers with federal regulations.
- D. Drive Other Car Coverage extends personal auto liability to individuals driving non-owned cars, not for a commercial trucking fleet.
Motor Carrier Coverage Form
A commercial auto insurance form designed specifically for businesses that transport goods or passengers for hire, covering liability, physical damage to owned vehicles, and often cargo liability.
- Used by 'for-hire' truckers and transporters.
- Addresses liability for bodily injury/property damage.
- Covers physical damage to insured's own vehicles.
- Can include cargo coverage.
Memory trick: A motor carrier needs a special 'Motor' form.