Cargo transportation is a high-profit, risky, and expensive business. You’ll need commercial trucking insurance to protect your and your client’s assets and avoid liabilities in an accident, whether you own a fleet of trucks, are an independent truck driver, or work for a company that uses these vehicles to transport products.
Let’s go through the many sorts of insurance available to trucking firms to help you figure out which one is best for you.
What is Commercial Trucking Insurance?
Commercial trucking insurance is a type of policy that helps protect your business in an accident involving a commercial truck. This type of insurance can help cover the cost of damages to property and any injuries that may have occurred due to an accident.
Trucking insurance coverage starts with primary liability and builds on it with additional coverages. To protect property and people from harm caused by your trucks, you must have commercial trucking insurance as a part of your licensing and operation requirements.
Types of Commercial Trucking Insurance:
Primary Auto Liability:
Federal law requires all commercial trucking businesses to have a minimum of this insurance coverage. It covers bodily injuries and property damage if your truck causes an accident.
Every state requires general liability coverage. It protects you against property damage or bodily damage caused by an accident. It covers a driver’s actions while on someone else’s premises, such as truck stops and loading docks. Load delivery errors are also covered.
The road can be tough on trucks and truckers. Physical damage insurance coverage protects you in case of:
- Glass breakage
- Weather damage
Alternatively, this coverage will reimburse you if your vehicle is destroyed beyond repair.
Bobtail insurance, also known as non-trucking liability, covers circumstances in which the truck driver is operating the vehicle for personal reasons or isn’t on dispatch. Bobtail insurance will come into force if the owner-operator’s primary liability coverage fails. However, in circumstances like pulling a trailer or working for a trucking company, the trucker’s bobtail insurance won’t cover them.
Motor Truck Cargo:
This kind of insurance is vital for those hauling other people’s property. Motor truck cargo insurance will cover any lost or damaged goods while in the trucker’s care. It is crucial because if something were to happen to the load, the trucking company or shipper could come after the trucker for damages.
This is excellent coverage if the trucker ever finds themselves in an accident and their truck is totaled. Rental reimbursement takes care of the cost of renting a replacement vehicle while the trucker’s truck is being repaired or replaced.
Reefer Breakdown Coverage:
Refrigerated trucks may face issues like:
- Lost cargo
- Refrigeration breakdown
- Electrical problems
Any of these can occur and put the trucker out of work. A reefer breakdown coverage policy will reimburse the trucker for lost earnings and pay to have the reefer fixed.
Working in an industry as risky as trucking, it’s essential to be prepared for anything. Make sure to look into all the different types of insurance available and find the best policy for you.
With the right insurance, you can rest assured knowing that you and your family will be taken care of in case of an accident.
Family First Life – Strong Tower & Hammer Lane Consultants, serving Dallas, TX, is a reliable insurance company that you can trust. We specialize in life insurance for truckers and can help you find the right policy.