After a serious truck accident, the question of insurance is often one of the first and most confusing issues you will face. It’s a world of complex policies, high-dollar limits, and powerful insurance companies. It’s natural to feel intimidated and unsure of how you will ever be fairly compensated for your devastating losses.
I want to assure you that you are not alone in this feeling. The insurance landscape for commercial trucking is intentionally complex. But understanding the basics can empower you and demystify the process. Let’s pull back the curtain on how trucking companies are insured in Wisconsin, so you can see the path to financial recovery.
More Than Just a Simple Policy
Unlike a personal auto policy, which is relatively straightforward, the insurance coverage for a commercial truck is a multi-layered system designed to protect the trucking company’s assets. Here are the key layers of coverage you need to know about:
1. The Primary Liability Policy
Federal law mandates that all commercial trucks carry a minimum amount of liability insurance. This is the primary policy that will typically cover damages in an accident. The minimum amount required depends on the type of cargo being hauled:
•General Freight: Most trucks carrying general freight are required to have at least $750,000 in liability coverage.
•Hazardous Materials: Trucks hauling hazardous materials, such as oil or chemicals, are required to carry at least $5,000,000 in coverage.
While these numbers may seem high, the costs of a catastrophic truck accident—including a lifetime of medical care, lost income, and pain and suffering—can easily exceed these minimums.
2. The Umbrella or Excess Liability Policy
Because the damages can be so immense, many trucking companies carry additional layers of insurance called umbrella or excess liability policies. These policies sit on top of the primary liability policy and provide additional coverage once the primary policy limits have been exhausted. A trucking company might have an umbrella policy that provides an additional $1 million, $5 million, $10 million, or even more in coverage.
Identifying and accessing these umbrella policies is one of the most critical tasks for your attorney. It often requires a deep investigation and aggressive legal tactics to force the insurance companies to disclose all available coverage.
3. Other Potential Insurance Policies
Depending on the circumstances of the crash, other insurance policies may also come into play. For example:
•The Truck Owner’s Policy: If the truck itself is owned by a separate entity and leased to the trucking company, the owner may have their own insurance policy.
•The Cargo Loader’s Policy: The company that loaded the cargo onto the truck may have a policy that covers accidents caused by improper loading.
•The Maintenance Company’s Policy: If a third-party company was responsible for maintaining the truck, their insurance may be liable if negligent maintenance caused the crash.
Frequently Asked Questions (FAQ)
Q: Why is the trucking company’s insurance adjuster calling me and asking for a recorded statement?
A: You should be very wary of speaking to the trucking company’s insurance adjuster. They are not on your side. Their job is to minimize the amount of money their company has to pay. They are trained to ask leading questions to get you to say something that could hurt your case. You should never give a recorded statement without first speaking to your own attorney.
Q: The insurance company offered me a quick settlement. Should I take it?
A: No. Quick settlement offers are almost always a red flag. The insurance company is trying to get you to accept a lowball offer before you understand the full extent of your injuries and losses. A serious injury may require a lifetime of care, and a quick settlement will never be enough to cover those long-term costs. You should never accept a settlement offer without having it reviewed by an experienced truck accident lawyer.
Q: How do you find out how much insurance coverage is available?
A: This is a key part of the legal process. We use formal legal tools, called discovery, to demand that the trucking company and all other potential defendants disclose all applicable insurance policies. If they refuse, we can ask a judge to compel them to do so. It is a fight, but it is a fight we are prepared for.
Navigating the Insurance Maze on Your Behalf
Dealing with these powerful insurance companies is a battle you should not fight on your own. They have teams of lawyers and adjusters dedicated to protecting their bottom line. You need a team of dedicated advocates on your side, fighting for your best interests.At Fitzpatrick, Skemp & Butler, we have been taking on these insurance giants for decades. We know their tactics, and we know how to win. To learn more about how we can help, please visit our homepage or our main truck accident service page. When you are ready, please contact us at (608) 784-4370 for a free consultation. Let us handle the insurance companies so you can focus on healing.