Understanding the Basics of Commercial Truck Coverage
Commercial truck coverage or commercial trucking insurance protects businesses that operate commercial trucks. According to Simplex Insurance, when you start a trucking business, you need insurance to protect your drivers, vehicles, and cargo and abide by the law. Still, you can choose from plenty of commercial truck insurance. But which are required by the law, and what do they cover? Here is what you should know.
Primary Liability Insurance & General Liability
Primary liability insurance is the most important insurance you need for your trucking company. The law requires it and will help you be covered in case any of your truck drivers cause bodily injury or property damage to others.
General liability coverage can help you in case of load delivery mistakes or crashes caused by your driver operating on another person’s premises. To comply with insurance coverage requirements, each of your trucks must have commercial liability insurance. This also applies to leased vehicles.
Other Types of Insurance
In the transportation industry, various insurance protects truck drivers, other drivers, vehicles, and cargo. Some of the most commonly used insurance in the trucking industry include the following:
- Physical damage coverage
If your truck or trailer is damaged and needs repairs from collisions, acts of vandalism, theft, or natural disasters, physical damage coverage will help you immensely. Even if your truck is damaged beyond repair, this type of insurance will help you replace it.
- Non-trucking liability or bobtail
Non-trucking liability coverage is used when a truck driver wants to use the truck for personal reasons or is off dispatch. It is a good strategy to have this insurance and ensure that your vehicles are covered if they are damaged while off-duty.
- Motor truck cargo insurance
Truck cargo insurance is among the most important insurance. Whether you transport hazardous materials or not, loaded trucks are more susceptible to theft. If there are accidents, your cargo is also prone to get damaged as well. This is where cargo insurance steps in and provides you protection if your goods are damaged or lost. Premiums depend upon what type of cargo you are carrying and the freight type.
- Excess liability insurance
If you want additional coverage beyond your primary liability insurance limits, you must apply for umbrella or excess liability insurance. Trucking companies can face catastrophic losses and lawsuits after fatal accidents. However, with this type of insurance, you can protect your company.
- Occupational accident insurance
Sometimes, you may have to work with independent contractors or owner-operators who aren’t covered by workers’ compensation. This leaves your trucking business vulnerable to potential lawsuits in the event of a work-related accident. Yet, with occupational accident insurance, you can help injured workers receive compensation if they are hurt in work-related accidents.
- Trailer interchange insurance
If you engage in trailer interchange agreements, you will need trailer interchange insurance to cover physical damages to non-owned trailers. This insurance doesn’t just protect you from collision accidents but natural disasters and vandalism as well.
