How does interstate operation affect coverage?

Operating across state lines may require additional coverage and compliance with various state regulations.

When a trucking company or fleet begins operating across state lines, it means that the vehicles are traveling beyond their home state into different jurisdictions. This expanded geographic range introduces complexities in terms of insurance coverage because each state might have its own regulations and requirements for commercial vehicles. Fleet operators must ensure they are compliant with each state's regulations, which could include specific liability insurance limits, permits, and rules governing freight operations. Additionally, interstate operations often require federal compliance as well, such as adhering to the Federal Motor Carrier Safety Administration (FMCSA) regulations, which can include obtaining a US DOT number, motor carrier authority, and adhering to procurement of specific insurances, like the MCS-90 endorsement, a requirement for interstate carriers for public liability in case of accidents.

Imagine a logistics company based in New Jersey that gets a new contract to deliver goods to several locations in Pennsylvania and New York. While their existing insurance policy suffices for intrastate operations within New Jersey, crossing state lines to Pennsylvania and New York requires them to review their policies to meet the different insurance requirement standards of these states. They might need additional endorsements and higher coverage limits to legally and safely operate interstate routes. Failure to secure appropriate coverage could result in fines, legal issues, or inability to operate in those states effectively.

If you're considering expanding your fleet operations across state lines, start by researching the insurance and regulatory requirements for each state you plan to operate in. Consult with your insurance provider to ensure your current policy covers interstate travel and make adjustments as necessary. Stay informed about both state and federal rules that apply to your fleet, including any specific endorsements or documentation you need. Regularly review your coverage and work closely with a legal advisor who specializes in transportation law to ensure complete compliance and adequate protection for your business.