Class Insurance Agency, an affiliated office of AIC Insurance
Excess and umbrella liability for trucking
The federal minimum for most trucks is $750,000, and the usual primary policy is $1,000,000. One serious crash can cost far more than either. Excess and umbrella policies add limits above your primary insurance, and many larger shippers and contracts ask for them.
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Excess or umbrella?
- Umbrella is built for catastrophic losses and sits over your auto, general liability and employer’s liability policies. It adds limits, can “drop down” when an underlying aggregate is used up, and may cover some claims the underlying policies don’t, subject to a self-insured retention.[1]
- Excess only adds limit. It is no broader than the policy beneath it.[2] A “follow form” excess policy takes on the underlying policy’s terms, although many carve out exceptions.[3]
Two things to know. You must keep the scheduled underlying limits in place, or you pay the gap. And umbrellas generally won’t drop down for exposures you knowingly left uninsured.[4] Auto liability usually has no aggregate limit, so drop-down mostly matters on the general liability side.[4]
How the layers stack
A typical tower starts with a $1,000,000 primary auto policy, then an umbrella or lead excess policy, then further excess layers. ATRI tracks premiums for $5 to $10 million and $10 to $15 million layers, so multi-layer towers are common among larger carriers.[5]
For the federal filing, the minimum for for-hire general freight in trucks of 10,001 lb or more is $750,000, and $1,000,000 or $5,000,000 for certain hazmat.[6] When more than one insurer is used to reach the required limit, each files a BMC-91X, which can represent full coverage or one layer.[7]
Why $1,000,000 often isn’t enough
- The minimum hasn’t moved since 1985. FMCSA’s 2026 report to Congress said the $750,000 minimum would be about $2.2 million today using core inflation, or $3.7 million using medical costs, and that damages from severe crashes can far exceed the minimums. It didn’t recommend a specific increase.[8][9]
- Nuclear verdicts. ATRI’s study of 600 trucking cases found 26 verdicts over $1 million in the first five years of the period and nearly 300 in the last five. Award sizes grew 51.7% a year from 2010 to 2018.[10] The average verdict over $1 million rose from about $2.3 million in 2010 to about $22.3 million in 2018.[11]
- Rising cost of higher layers. From 2021 to 2024, liability premiums rose 18.6% to 10.2 cents a mile. The $5–10 million layer rose 34% and the $10–15 million layer 45%.[5]
Amazon Relay asks for $1,000,000 in auto liability[12], but some shippers and logistics contracts ask for higher total limits. Check your contracts before you choose.
What excess underwriters look at
Profitable loss history, a strong driver pool with driving-record reviews, CSA scores, documented safety and maintenance programs, and cameras or collision-avoidance systems.[13] Radius matters too: underwriters usually group trucks as local (up to 50 miles), intermediate (50 to 200) or long distance (over 200).[14] ATRI found six safety technologies linked to lower losses per mile.[5]
What to have ready for a quote
- Your primary auto and general liability policies (declarations pages)
- Loss runs for the past several years
- Driver list and driving records, and your hiring standards
- Radius, states and commodities
- The contract that requires the higher limit
- Your safety technology: cameras, collision avoidance, telematics
Frequently asked questions
What is the difference between excess and umbrella insurance?
Excess only adds limit above the policy beneath it. An umbrella can be broader, dropping down or covering some gaps, but it has its own terms and exclusions.[2][1]
What happens if my primary policy lapses?
You pay the gap. Umbrella and excess policies require the scheduled underlying limits to stay in force.[4]
Does my umbrella have to be filed with FMCSA?
Filings show you meet the federal minimum. When more than one insurer is used to reach it, each insurer files a BMC-91X for its layer.[7]
How much liability limit should a trucking company carry?
There is no federal rule above $750,000. FMCSA’s 2026 report put the inflation-adjusted equivalent at about $2.2 to $3.7 million; your contracts usually set the practical number.[8]
How can I lower the cost of excess coverage?
A clean loss history, well-screened drivers, good CSA scores, a shorter radius and safety technology such as cameras all help.[13][5]
Get an excess or umbrella quote
Call 360-450-2211 or start your quote. We quote trucking operations in the 48 contiguous states from our office in Vancouver, Washington, Monday to Friday, 7 a.m. to 5 p.m. Pacific.
Related coverage
Sources
- [1] IRMI: Umbrella liability policy
- [2] IRMI: Excess liability policy
- [3] IRMI: Follow-form excess liability policy
- [4] IRMI: Commercial umbrella policy, things to consider (2024)
- [5] ATRI: Motor carrier responses to rising insurance costs (May 2026)
- [6] 49 CFR 387.303: federal minimums
- [7] 49 CFR 387.313: insurance filings (BMC-91 and BMC-91X)
- [8] NEFI: FMCSA report asserts financial responsibility standards are inadequate (2026)
- [9] FreightWaves: FMCSA spotlights trucking's insurance gap (2026)
- [10] ATRI: The scale of nuclear verdicts in trucking (2020)
- [11] American Trucking Associations: How nuclear verdicts are affecting trucking
- [12] Amazon Relay: Understanding insurance requirements (2026)
- [13] FreightWaves: Why your insurance renewal is getting worse (Apr 2026)
- [14] IRMI: Radius class
General information only, checked September 2026. Rules change; confirm with the agency that issues your permits. Coverage availability, terms and filings depend on underwriting and the policy issued; a quote request does not bind insurance.