General Liability Insurance for Truckers: What It Covers (That Auto Liability Doesn't)
Your auto liability policy covers accidents on the road. But what about the guy who trips over your equipment at the loading dock? Or the warehouse door your driver backs into — without the truck? That's where general liability comes in.
What Is General Liability Insurance?
General liability insurance (GL, or commercial general liability — CGL) protects your trucking business from claims that happen off the road. It covers bodily injury and property damage that arise from your business operations, premises, or products — but not from operating a vehicle.
Auto Liability Covers
Accidents involving your vehicles on the road. Someone you hit, property you damage while driving, passengers injured.
Required by FMCSAGeneral Liability Covers
Everything else. Injuries at your facility, damage during loading/unloading (not from the vehicle), advertising claims, completed operations.
Required by many contractsWhat General Liability Actually Covers
GL policies cover three main categories. Here's what they mean in plain English for a trucking operation.
Premises Liability
Coverage AInjuries or damage that happen at locations you own, rent, or control.
Real Trucking Examples
- A visitor slips on ice in your yard and breaks a wrist
- A truck driver from another company trips over equipment at your shop
- A vendor falls off a loading dock at your warehouse
- A kid rides their bike into an unfenced area of your lot
- Water damage from your building affects a neighboring business
Operations Liability
Coverage AInjuries or damage caused by your business activities (not involving vehicles).
Real Trucking Examples
- Your driver damages a shipper's dock door while hand-loading freight
- Cargo falls off a pallet during manual handling and injures a warehouse worker
- Your employee drops a tool that damages a customer's property
- Spilled fuel or fluid from equipment (not a vehicle) damages a shipper's lot
- Your strapping equipment fails during manual securement and injures someone
Personal & Advertising Injury
Coverage BNon-physical harm your business causes — reputation, privacy, intellectual property.
Real Trucking Examples
- A competitor claims you made false statements about their service
- Your marketing uses a photo without permission and the photographer sues
- A former customer claims you shared their business information
- Your website copy is too similar to a competitor's and they claim infringement
This coverage matters more for larger fleets with marketing operations, but it's included in standard GL policies.
What GL Does NOT Cover
This is where truckers get confused. GL has specific exclusions you need to know.
Vehicle Accidents
Any bodily injury or property damage arising from the ownership, use, or operation of a vehicle. That's your auto liability policy.
Employee Injuries
If your driver or employee gets hurt on the job, that's workers' compensation — not GL. GL covers injuries to other people, not your own employees.
Damaged Cargo
Freight you're hauling that gets damaged is covered by cargo insurance, not GL. GL covers damage to other people's property caused by your operations.
Professional Errors
If you give bad advice or make a professional mistake (like a broker arranging wrong coverage), that's errors & omissions (E&O) insurance.
Intentional Acts
If someone at your company intentionally causes harm, GL won't cover it. Insurance covers accidents, not decisions.
Pollution
Most GL policies exclude pollution (including fuel spills from vehicles). You may need a separate pollution liability endorsement or policy.
The Loading & Unloading Gray Area
This is the #1 coverage dispute in trucking GL claims. When a load is being loaded or unloaded and something goes wrong — which policy pays?
Usually Auto Liability
- Driver backs into a dock and damages it
- Cargo falls from the truck bed during unloading with a liftgate
- Forklift loads a pallet onto the trailer and it falls through
- Trailer tips during loading due to weight distribution
If the vehicle or its mechanical components were involved, auto liability typically applies.
Usually General Liability
- Driver hand-carries a box inside and drops it on someone's foot
- Strapping breaks during manual securement, injuring a dock worker
- Driver spills coffee on shipper's paperwork, damaging important documents
- Equipment left at the dock creates a tripping hazard
If the incident happened independent of the vehicle, GL typically applies.
Who Needs General Liability?
Definitely Need GL
- You own or lease a yard, shop, or office
- Shippers or brokers require it in their contracts
- You have employees who interact with customers' property
- You operate a fleet (5+ trucks)
- You do any manual loading or unloading
- You want to bid on government or corporate contracts
May Not Need GL
- Solo owner-operator with no yard or office
- Only do drop-and-hook (never touch freight)
- Leased to a carrier who provides GL coverage
- No employees
Even then, many brokers and shippers require GL certificates before they'll give you loads. Check your contracts.
The Contract Reality
Even if FMCSA doesn't require GL (they don't — they only require auto liability), the business world increasingly does. Brokers, shippers, landlords, and warehouse operators routinely require $1M GL coverage in their contracts. Without it, you lose access to loads.
How Much Does GL Cost?
| Operation Size | Annual Premium | Coverage Limits |
|---|---|---|
| Solo owner-operator No yard, no employees | $400 — $800 | $1M per occurrence / $2M aggregate |
| Small fleet (2-5 trucks) Small yard, 1-5 employees | $800 — $2,000 | $1M per occurrence / $2M aggregate |
| Mid-size fleet (6-20 trucks) Yard, shop, 10+ employees | $2,000 — $5,000 | $1M per occurrence / $2M aggregate |
| Large fleet (20+ trucks) Multiple locations, warehouse | $5,000 — $15,000+ | $1M-$2M per occurrence / $2M-$4M aggregate |
What Affects Your GL Rate
How GL Fits With Your Other Policies
GL doesn't work alone. Here's how it fits into your total coverage picture.
What to Do If Someone Files a GL Claim Against You
Document Everything Immediately
Photos of the scene, written description of what happened, names and contact info of all witnesses. The more evidence you have from day one, the better your insurer can defend you.
Report to Your Insurance Company Within 24 Hours
Late reporting is a common reason claims get denied. Even if you think the incident is minor, report it. Small claims become big lawsuits.
Don't Admit Fault or Negotiate
Be helpful and concerned, but don't say "it was our fault" or offer to pay for anything. Your insurance company handles this. Anything you say can be used against you in a lawsuit.
Cooperate With the Adjuster
Your insurer will assign an adjuster to investigate. Provide everything they ask for promptly. They're on your side — they want to resolve this efficiently.
Understand the Financial Impact
GL claims affect your renewal rates for 3-5 years. A $10,000 claim might increase your GL premium by $500-$1,500/yr for several years. But that's far better than paying $10,000+ out of pocket — plus legal fees.
Frequently Asked Questions
Is general liability required by FMCSA?
No. FMCSA requires auto liability insurance (MCS-90/BMC-91) but not general liability. However, many brokers, shippers, and landlords require GL coverage in their contracts. In practice, you often can't operate without it — not because the government requires it, but because the businesses you work with do.
Does my auto liability policy cover loading and unloading incidents?
Sometimes. Most commercial auto policies include loading and unloading as part of "use" of the vehicle, but there's a gray area. If the incident involves the vehicle (backing into a dock), auto liability typically applies. If it involves manual handling away from the vehicle (dropping a box inside a warehouse), GL typically applies. The safest approach is to have both policies and ask your agent to confirm there's no gap.
What's the difference between "per occurrence" and "aggregate" limits?
"Per occurrence" is the maximum your policy will pay for any single incident. "Aggregate" is the total maximum your policy will pay for all claims during the policy period (usually one year). Standard GL is $1M per occurrence / $2M aggregate. So if you have two claims that each cost $1M, you're covered. But a third million-dollar claim in the same year would exceed your aggregate.
Can I get GL coverage as an endorsement on my auto policy?
Some insurers offer a basic GL endorsement on your commercial auto policy. This is usually less expensive than standalone GL but also provides less coverage. For many solo owner-operators, this is sufficient. For fleets with premises, employees, and manual freight handling, standalone GL is better. Ask your agent to compare both options.
What if a broker requires $2M in GL coverage and I only have $1M?
You have two options: increase your GL limits (usually costs $200-$600/yr more) or add an umbrella/excess liability policy that sits on top of your GL and auto liability. An umbrella policy is often cheaper than increasing individual policy limits and provides broader protection. Many trucking companies carry $1M GL plus a $1M umbrella.
Need General Liability Coverage?
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