Anyone in the trucking industry knows the government loves their regulations. There are many more requirements for the various transporting of cargo and freight. The same can be said for the transporting of passengers as well.
If your carrier company transports 16 or more passengers you will be required to have $5 million in basic insurance, this includes the driver. If your passenger transport service carries 15 or less than you are required to have $1.5 million in basic insurance. These requirements apply to any company that travels either across state lines or runs internationally.
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As with anything the government oversees there are exceptions, so why should this be any different, right? So what might some of these exceptions be? Taxis and school buses that transport less than seven passengers have a lower premium requirement. Also any commuter transport vehicles that hauls fewer than 16 passengers, on a daily round trip basis, is exempt.
Of course there is another option, besides insurance. That is surety bonds. Freight forwarders, brokers, and trucking carriers can all purchase surety bonds. These are offered in the same amounts as stated above. The local FCMSA office can better assist you in meeting this requirement.
