Bodily Injury Liability Insurance: What You Need To Know
As a carrier, you have a lot of responsibilities. You need to ensure your drivers are busy and safe and that they keep other drivers, bikers, and pedestrians safe. However, accidents are inevitable. They can be small, resulting in no more than a bent fender, but they can also be quite large, leading to damaged property, life-changing injuries, and even loss of life. Plus, you may end up owing significant, potentially bankrupting amounts of money to those affected by the accident.
Insurance is a no-brainer for those in trucking. In fact, certain types of insurance, such auto liability insurance, are required for all carriers. Another important variety of insurance carriers need to know about is bodily injury liability insurance. Read on to discover the bodily injury liability definition, the difference between bodily injury & property damage liability, get answers to questions like, “How much bodily injury liability do I need?,” and more!
The basics of insurance for carriers
So many things are out of drivers’ control on the road. The weather could be bad, the streets could be extra slick, the sun could be shining at just the wrong angle, a pedestrian might step out from a blind spot, a brake might fail, or worse. Countless things could go wrong on any given day or around any corner. That makes insurance a must for carriers.
After all, it’s better to be safe than sorry. Without insurance, you might find your carrier business going bankrupt after a single accident. On the other hand, if you pay your insurance premiums regularly, you can count on your insurance provider to handle some costs in the event of a covered accident. Even if you and your drivers are never in an accident, it’s still worth having insurance for the peace of mind it provides. Plus, some forms of insurance are required by states or the FMCSA, so it’s important to check your requirements before you decide insurance isn’t worth the investment (an approach we do not recommend).
There are plenty of forms of insurance out there, ranging from cargo insurance to truck insurance. You’ve probably also heard of bobtail insurance, general liability insurance, and physical damage coverage, but those aren’t the only types of insurance that carriers need to keep in mind. Another important form of insurance you’ll want to have is bodily injury coverage.
What is bodily injury liability?
Bodily injury liability is a form of insurance that can cover medical bills, income loss, and more for third parties in accidents where you or your company are found responsible. It’s required in most states and can also help with legal defense expenses if you’re sued for damages.
People often lump bodily injury & property damage liability together because they’re both forms of liability insurance, but the truth is that they offer different sorts of protection. Property damage liability coverage can step in to help pay for any expenses incurred to others’ physical property in accidents where you’re liable. In contrast, bodily injury coverage is focused on the people involved and can help cover medical bills and legal defense. In short, both bodily injury & property damage liability are essential for carriers, but bodily injury liability focuses on people, while property damage liability concerns people’s property.
What does bodily injury liability cover?
Now that you know the bodily injury liability definition, let’s dive into precisely what bodily injury coverage includes. With a solid bodily injury liability coverage plan, you can trust your insurance company to help cover the following:
- Medical expenses: Even a simple trip to the hospital can be pricey, much less one following an accident with a large truck. Your bodily injury insurance provider can cover impacted parties’ hospital fees, emergency care services, ongoing care costs, follow-up visits, and even equipment costs like crutches or wheelchairs.
- Loss of income: Accidents can seriously impact injured parties’ ability to work. Whether they need to take time off work to attend physical rehabilitation sessions or can’t return to work at all because they worked in a physically demanding environment, injured parties are often entitled to receive compensation. That’s where bodily injury liability can kick in and save you some money.
- Funeral costs: If the worst should occur and someone dies due to an accident you or one of your drivers caused, your bodily injury liability coverage can help pay for the victim’s funeral costs.
- Pain and suffering: One accident that takes place in seconds can cause a lot of ongoing pain, suffering, and emotional stress — and injured parties often seek payment for their experiences. Here, too, bodily injury liability insurance can kick in and help cover costs.
- Legal fees and legal counsel: Should the injured party file a lawsuit against you, your bodily injury liability insurance plan may cover some or all of your legal defense fees and court costs.
How does bodily injury liability work?
A bodily injury insurance plan has two different bodily injury limits: a per-person limit and a per-accident limit. These bodily injury limits are the absolute maximum your insurance provider would pay for a covered bodily injury claim.
The per-person limit is the maximum amount your insurance company would pay per person injured in the accident. However, this tops out at the per-accident limit. For example, if you purchase a bodily injury insurance policy with $100k per-person and $400k per-accident bodily injury limits but six people were injured in the accident, your insurance provider would pay up to $400k for their combined medical expenses.
It’s also worth noting that you don’t have to purchase bodily injury liability policies separately. Many general liability insurance policies include bodily injury insurance and are just as effective as separate insurance. Just note that they function a little differently.
You can purchase a combined single-limit policy, which gives you a certain amount of coverage that is divided between bodily injury and property damage depending on the accident, or a split-limit policy. With this policy, your insurance provider has a predetermined amount it will pay for each type of coverage.
For example, you might come across a 25,000/50,000/20,000 split-limit policy. This means your insurer will pay up to $25,000 in injury expenses per person with a $50,000 per-accident limit and a $20,000 property damage limit. You can pay for higher limits or even purchase umbrella insurance for additional protection. This may not be available in all states, be sure to check your policy for full details.
How much bodily injury liability do I need?
You’re probably wondering, “How much bodily injury liability do I need?” Unfortunately, we can’t provide an answer that applies to everyone, as many states have their own minimum liability coverage requirements. If you get bodily injury liability coverage as part of your broader insurance plan (which is often the easiest and most effective approach), you’ll need to at least meet the $750,000 FMCSA coverage minimum.
Keep in mind that this is the absolute minimum bodily injury liability coverage you’ll need. In many cases, it makes sense to purchase even more bodily injury liability insurance to ensure you and your assets are well protected. In fact, when it comes to insurance for trucking companies, it’s generally recommended that you get at least $1,000,000 in coverage.
If your state doesn’t have any bodily injury insurance requirements or it allows self-insurance, you’ll still want to have bodily injury coverage. Without it, you’ll be liable for any medical bills, legal fees, funeral costs, income loss, and pain and suffering, which could financially devastate you and your carrier business.
How much does bodily injury liability coverage cost?
Again, we can’t provide you with a universal, accurate answer regarding how much bodily injury liability coverage will cost your carrier business. Insurance companies determine their rates using a variety of factors — and each company has a slightly different process. Anything from your location to your driving history to how much coverage you need to purchase can impact the price you end up paying for your bodily injury liability coverage.
However, there are a few things that we can guarantee will drive up prices, no matter which state you operate in. If you want to purchase coverage beyond your state’s minimum requirements, you’re going to have to pay more. If you’ve been in an accident or had a traffic violation in the last couple of years, you can also say hello to more expensive coverage.
Gain peace of mind and coverage with Marquee Insurance Group
There are so many insurance providers at carriers’ fingertips these days, but Marquee Insurance Group (MIG), DAT’s commercial insurance partner, is the best of the best. Not only do they offer commercial auto liability and motor cargo insurance, but they also provide physical damage, per shipment cargo, and excess umbrella insurance. What’s more, their general liability policy includes bodily injury liability as well as property damage liability and personal injury and advertising injury liability.
If you need insurance, DAT has got you covered. MIG, DAT’s commercial insurance partner, has access to more than 50 A-Rated insurance companies and takes a transparent approach to insurance. Additionally, MIG provides incredible customer service and ensures a hassle-free experience for carriers. With MIG, you can effectively mitigate risks, rest easy knowing that you’re in good hands, and focus on growing your business.
Ensure your business is protected today with coverage from our trusted commercial insurance partner, Marquee Insurance Group.
Protect your business with insurance from MIG
Marquee Insurance Group is your go-to if you’re after quality insurance. Their general liability policy includes everything from bodily injury liability to property damage liability coverage, so you can relax knowing that MIG has your back.
Get in touch with us today to learn how MIG can help you with your insurance needs.
