Truck Insurance:

Top 10 Must Have Coverages

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At a quick glance, truck insurance might seem similar to a commercial vehicle or personal auto insurance. But as the nature of trucking business demands transport of goods in bulk, it comes with its own dangers.  

In an accident, a normal vehicle would incur either property or bodily damages to a handful of parties at most. But if a truck meets with an accident, its sheer size alone will harm multiple parties. Furthermore, it may also be carrying millions of dollars’ worth of shipment, which may all be damaged too. 

Hence, in monetary terms, the risks of trucking businesses are much higher.  

As of 2019, Business Insider reported that the trucking business: 

  • Is worth hundreds of billions of dollars. 
  • Employs more than 5% of American workers. 
  • Transports 71% of shipment in America. 

What makes commercial trucking coverage any different from the commercial or personal auto insurance? Let’s find out.

In this article

Common risks for commercial trucks

  • Accidents: No one can predict when accidents will happen. Such mishaps can bring  unforeseen expenses such as medical or repair bills. U.S. Department of Transportation’s FARS reports that large truck crashes caused the death of 4,136 people in 2018. 
  • Natural causes: Trucks transport goods across different states. Each of these states are prone to unique calamities.  
  • Cargo theft, damage, or loss: Cargo is always vulnerable to theft, damage, or loss before it reaches the final destination.  
  • Pollution: Trucks carry different types of products. Some products may require specific containers. Such goods when exposed to the environment, might have an adverse effect.

Businesses that require a truck insurance quote

The following are multiple  types of insurance available for businesses with different types of trucks: 

  • Semi-truck insurance (18 wheelers or tractor-trailers) 
  • Tank truck insurance 
  • Garbage truck insurance 
  • Box truck insurance 
  • Tow truck insurance 
  • Commercial dump truck insurance 
  • Car haulers and auto trailers insurance 
  • Flatbed truck insurance 

If you want a truck insurance coverage that compliments your business requirements the best, get in touch with us today! 

How much does trucking insurance cost?

Due to the high-risk nature of the business, trucking insurance premium stands on a pedestal. The Wall Street Journal has mentioned that the truck insurance premium rose to 42% in the period of 8 years. Here are some of the factors that determine the cost of truck insurance: 

  • Credit record 
  • The driver’s experience and licenses 
  • The price of the truck 
  • Your payment plans 
  • The type of product your business ships 
  • Operating areas 

While these are the common factors considered, every carrier prioritizes them differently. You too need to prioritize you plan according to the nature of your business.  

Coverages included in trucking insurance

General Liability Insurance:

Commercial general liability insurance covers claims arising from business operations such as damage to property, medical bills, and injuries in case your driver runs into an accident. Furthermore, liability insurance will also compensate your legal defense costs regardless of who’s at fault.

Workers Compensation Insurance:

Workers compensation insurance is mandated in almost all states. It reimburses your workers for lost income, medical costs, rehab expenses, and so on. A single driver transports a significant amount of shipment, so one’s well-being is in the best interest of the business.

Commerical Umbrella Insurance:

A commercial umbrella insurance compensates you when your current plan is not sufficient to cover up losses. Example: One of your truck hit a vehicle, damaging it and injuring the driver. You auto policy will cover the body injuries and repair costs. But the victim, being unable to work due to injury, loses income and sues you. You auto policy may not be sufficient to cover all this but if you have an umbrella insurance, it will indemnify remaining costs.

Standard endorsements in truck insurance

  • Motor truck cargo insurance: Motor truck cargo insurance safeguards the shipment that your truck carries. If your cargo is lost or damaged from collision, striking of a load or fire, you will be reimbursed fully for the vehicle and the contents inside. 
  • Physical damage: 
    • Collision – pays for damages arising from accidents. 
    • Comprehensive – indemnifies liabilities other than collision.  
  • Uninsured/underinsured: Uninsured/underinsured motorist coverage compensates your repairs and medical bills if you’re in an accident with someone with no insurance. There may be cases where the driver that hit you has insurance, but not enough to cover all your bills. An underinsured motorist coverage can help you chip in for the rest of the bill. 
  • Hazmat coverage: Trucking companies may have to ship hazardous material (Hazmat) for business. Imagine a scenario where a truck carrying a hazmat, and it meets with an accident. The truck insurance will kick in to pay for damages to property and people. But it won’t pay for the damage incurred by the hazmat. Hazmat coverage is valuable for companies that frequently ship hazardous materials.  
  • Livestock insuranceThe trucking job may also involve transport of livestock somewhere along the line of business. For any risks that involves danger to livestock when transferring them can be transferred by a livestock insurance.    
  • Trailer interchange policy: There may be instances in which you may have to ship other’s goods in your vehicle. Your own coverage won’t protect such good in such cases. Instead, having a trailer interchange policy can help you protect you and the goods. 
  • Limited depreciation policy: Limited depreciation policy pays you for replacing your vehicle if it faces total loss.  
  • Non-trucking: A standard trucking insurance protects you during business operations. But what happens when your drivers use the truck off-hours? They are not covered by the standard policy. A non-trucking insurance can shield drivers who use their trucks for non-work purposes. That way, drivers and their trucks will be safe 24/7.  
  • Rental reimbursement: Imagine that one of your truck goes out of commission due to an accident. Both you and your client are affected due to undelivered shipment. A rental reimbursement insurance can provide you with truck rental costs in such scenarios. That way, you can prevent your logistics from getting hampered and keep your client happy.  
  • Bobtail insurance: Even though the trucking business entails trucks moving shipment, trucks do move without trailers every once in a while. A truck without a trailer is as likely to meet an accident as a truck with one. A bobtail insurance protects tractors moving without trailers.   

Standard exclusions in truck insurance

  • Trucking liability insurance does not pay for items privately owned by drivers.  
  • Even the best commercial trucking insurance company won’t pay for any damage done on purpose.

How much does truck insurance cost?

The following factors influence the cost on truck insurance:

The type of vehicle you use

The type of cargo you haul

Driving records

Your operating radius

Your business location

If you want a truck insurance coverage that compliments your business requirements the best, get in touch with us today!