Can You Sue Self-Insured Trucking Companies in Ohio?

Self-Insured Trucking Companies

Generally, after you’ve been involved in an accident with another automobile, you work with an insurance company to reach a settlement that covers the costs of repairing your car and any medical bills you may have incurred because of the accident. This process is the same for accidents with a commercial vehicle, except in cases where the semi-truck is owned by a company that insures itself.

Self-insured trucking companies handle their own claims, making them more likely to deny or attempt to lower the settlement amounts from truck accidents. As a victim of a truck accident, you have the right to get all your bills covered by the negligent company.

If you’ve been hurt in an accident by an employee of a self-insured trucking company, call an Ohio truck accident lawyer from Kisling, Nestico & Redick at 1-800-HURT-NOW.

Insurance Requirements for Trucking Companies

Operating a trucking company can be expensive, and insurance is a major part of cost. The Federal Motor Carrier Safety Administration (FMCSA) is the government industry that regulates commercial trucks and buses.

According to their regulations, trucking companies must maintain a minimum amount of “financial responsibility,” or insurance, to ensure they can cover costs of damage to the trucks, the freight loaded on their trucks, and injuries sustained by drivers of the truck or other vehicles.

This entails getting liability insurance, which includes bodily injury and property damage. The amount needed depends on the size and type of load a truck is carrying. For example:

• Vehicles moving 10,001 pounds or more of non-hazardous materials need to maintain a minimum limit of 750,000 dollars.
• Vehicles hauling 10,001 pounds or more of oil, hazardous waste, or other potentially dangerous materials need to maintain a minimum limit of 1,000,000 dollars.
• Vehicles hauling 10,001 pounds or more of hazardous materials need to maintain a minimum limit of 5,000,000 dollars.
• Vehicles hauling 10,001 pounds or less of particularly hazardous waste or radioactive materials need to maintain a minimum limit of 5,000,000 dollars.

These amounts are the minimum necessary to comply with FMCSA. There could be other insurance costs depending on state laws or specific regulations of the shippers and brokers dealing with these companies.

Why Trucking Companies Self-Insure

To save money, trucking companies are permitted by FMCSA to self-insure the business. Instead of buying a policy from an insurance agency, the trucking company can pay for its own general liability insurance.

This business option is best for larger companies with deeper pockets; these businesses can opt for a high deductible, which allows them to pay less when purchasing insurance. They also wouldn’t need to provide any collateral or letters of credit to an insurance company, further allowing them to save on costs.

But not all efforts to save money are noble. Because they aren’t beholden to an insurance company, these businesses can hire inexperienced drivers and pay them less. Trucking companies who insure through a third party often prefer to hire employees who have years of experience and a good driving record, proving they can safely maneuver big rigs on the road.

Self-insured trucking companies have more control over the claims they pay out, which is another way they may attempt to save money. Drivers involved in an accident with one of these companies’ employees could have a difficult time negotiating a settlement figure or may have their case drag on for months.