Farm Labor Contractor Practice Test

What is the minimum coverage amount required for day haulers transporting 15 or fewer passengers?

1. $1 million

2. $1.5 million

3. $2 million

4. $5 million

The correct answer is: $1.5 million

The minimum coverage amount required for day haulers transporting 15 or fewer passengers is $1.5 million. This figure is established based on federal regulations designed to enhance safety standards and provide a substantial safety net in the event of an accident. This level of insurance is critical because it ensures that sufficient funds are available for medical expenses, property damage, and other liabilities that may arise from accidents involving passenger transportation. The rationale behind this requirement is to protect both the passengers and the operator by ensuring that the operator has the financial capability to cover potential claims that could be incurred as a result of an incident. In the context of liability insurance for transportation, the requirement reflects a balance between the operational realities of day hauling and the necessity of providing adequate protection for all parties involved.