The state of New Jersey liability limits for select Commercial Auto risks pertaining to the minimum auto liability limits (BIPD) requirements have sweeping changes effective June 16, 2021.
The change is limited to certain trucking and livery risks:
• For-Hire Trucking and For-Hire Specialty risks with vehicles greater than 10,000 GVW require a minimum limit of 750,000 CSL
• For-Hire Livery and Livery Not-For-Hire risks with vehicles that seat more than 8 passengers require a minimum limit of 1,500,000 CSL
Note: At this time, the update impacts new business only for the risk types listed above.
Just when you thought it couldn’t be any better to live in the Garden State. You get this great news from the state government.
This will certainly put many small companies out of business due to extreme insurance costs which are already among the highest in the nation.
With the average big rig truck insurance price starting at or around $16,000 for basic coverage to activate an FMCSA DOT or MC authority it will be interesting to see how many business owner can absorb this cost.
For those operating a package delivery service with cargo vans and like vehicles this price increase will surely be passed on to the consumer.