As a trucking business owner, it’s important to ensure that you have the right insurance coverage to protect your business and employees – even if as a sole-proprietor YOU are the only employee. Commercial trucking insurance policies can be complex and overwhelming, but with the right information (and our trucking insurance experts), you can choose the right types of coverage that’s best for your needs.
Let’s discuss 10 important trucking insurance coverages available to commercial transportation vehicles
While these policies aren’t necessary for every type of trucking business, risk, or vehicle, they’re all important pieces of the trucking pie. It’s also important to understand the different types of coverages out there so you’ll be knowledgeable when speaking to your CheapTruckInsurance.com agents.
- Liability Insurance: Liability insurance is required in most states and covers damages or injuries caused by your truck to other people or their property. It includes bodily injury liability, which covers medical expenses, lost wages, and pain and suffering for the other party, and property damage liability, which covers damage to the other party’s property.
- Physical Damage Insurance: Physical damage insurance covers damage to your truck caused by accidents, theft, fire, or vandalism. These policies typically include collision insurance, which covers damage from collisions with other vehicles or objects, and comprehensive insurance, which covers damage from other incidents such as theft, fire, or weather-related events.
- Cargo Insurance: Cargo insurance covers the value of the goods your truck is carrying in case of damage, theft, or loss. It includes two types of coverage: All Risk coverage, which covers all risks of physical loss or damage, and Named Perils coverage, which covers specific risks such as fire, theft, and collision.
- Bobtail Insurance: Bobtail insurance covers your truck when it’s being driven without a trailer. It provides liability coverage for your truck when it’s being used for non-business purposes, such as driving to a repair shop or returning home after dropping off a load.
- Non-Trucking Liability Insurance: Non-trucking liability insurance covers your truck when it’s being used for non-business purposes, such as driving to the grocery store. It provides liability coverage for your truck when it’s not being used for business purposes.
- Trailer Interchange Insurance: Trailer interchange insurance covers the trailers you are hauling that belong to someone else. It provides physical damage coverage for the trailer and liability coverage for any damage or injury caused by the trailer.
- General Liability Insurance: General liability (or simply GL) insurance covers your business in case of injuries or damages caused by your business operations, such as slip-and-fall accidents at your office. It includes bodily injury and property damage liability, as well as other types of coverage such as personal injury liability and advertising injury liability.
- Workers’ Compensation Insurance: Workers’ comp provides coverage for your employees in case of work-related injuries or illnesses. It covers medical expenses, lost wages, and other related expenses, and is required by law in most states.
- Umbrella Insurance: Umbrella insurance provides additional liability coverage beyond your standard policies. Just like a rain jacket would cover your basic needs in the rain (ie. GL policy), an umbrella protects a lot more. It’s important to have this coverage to protect your business in case of a major lawsuit. It is intended to cover the costs that exceed the limits of your other liability policies.
- Motor Truck Cargo Legal Liability Insurance: Motor truck cargo legal liability insurance covers the legal liability for the loss or damage to the cargo you are hauling. It covers the value of the cargo and any related expenses, such as the cost of rerouting or reshipping the cargo in case of loss or damage.
It’s crucial to have the right insurance coverage for your trucks, your drivers, and your cargo. By understanding these 10 essential trucking insurance coverages, you can protect your business from any unexpected events. Make sure to work with a trusted insurance agent like ours at CheapTruckInsurance.com to help you choose the coverage that’s right for your business. Get a quote today.