Truck Insurance

Covered Up and Trucking!

Road transportation is the basic method of transport within a country. Among all commercial vehicles, trucks are one of the popular vehicles used in road transportation to transfer goods and services. Trucks are comparatively bigger in size and are also prone to accidents and damages. Hence, many reasons why truck insurance is vital. As of 2019, an article published by Business Insider shows that the trucking business:
  • Is worth hundreds of billions of dollars
  • Employs more than 5% of American workers
  • Transports 71% of shipment in America
Every year, there are increasing cases of reported cases of accidents and other types of collisions involving commercial trucks. Thus, purchasing commercial truck insurance is crucial for your business.

In this article

Common Risks for Commercial Trucks

  1. Accidents: Accidents are unforeseen events and can incur hefty losses such as medical or repair bills. In 2018, 4,862 large trucks were involved in a lethal crash.
  1. Natural causes: Trucks transfer goods across different states. Each of these states are vulnerable to unique calamities.
  1. Cargo theft, damage or loss: Cargo is always prone to theft, damage, or loss while on its way to the final destination.
  1. Pollution: Trucks carry various types of products. Some products may require specific containers. Such goods when exposed to the environment, might have an adverse effect.

Types of Insurance for Different Types of Trucks 

Mentioned below 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

How Much does Truck 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 a period of 8 years. Some of the factors that determine the cost of insurance are:
  • Credit record
  • The driver’s experience and licenses
  • The price of the truck
  • Payment plans
  • Type of product your business ships
  • Operating areas
While these are the common aspects to be considered, each carrier prioritized them differently. Also, according to the nature of your business, you need to prioritize your plan.

Coverages Included in Truck Insurance 

General Liability Insurance

General liability insurance provides coverage for claims arising from business operations such as property damage, medical bills, and injuries – if your driver runs into an accident. Furthermore, liability insurance will also compensate your legal defense costs, regardless of who’s at fault.

Worker’s Compensation Insurance 

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

Commercial Umbrella Insurance

Commercial umbrella insurance reimburses you when your current plan is not enough to cover up losses. For example, your truck hit a car, damaging it and injuring the driver. Your auto policy will cover the bodily injuries and repair costs. But the casualty, becomes unable to work due to injury, loses income and sues you. Hence, your auto policy may not be sufficient to cover the incurred loss. However, if you have an umbrella insurance, it will indemnify the remaining costs.

Don’t wait until it’s too late! Get your affordable and custom-tailored truck insurance policy quote for your business today.

Standard Endorsements

Motor Truck Cargo Insurance

Motor truck cargo insurance protects the shipment that your truck carriers. If your cargo is lost or damaged from collision, striking of a load or fire, you will be compensated 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 Motorists

Uninsured/ underinsured motorists coverage renumerates your repairs and medical bills if you face an accident with an uninsured driver. There may be instances when an underinsured driver hits and does not have enough insurance to cover 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, for example, Hazmat, for business. Suppose, a truck transporting hazmat meets with an accident. The truck insurance will step in to pay for property damage and bodily injury. However, it won’t pay for the damage incurred by the hazmat. Hazmat coverage is valuable for companies that frequently ship hazardous materials.

Livestock Insurance

Trucking job also involves transferring of livestock. For any risks that involves danger to livestock when transporting them can be covered by livestock insurance.

Trailer Interchange Policy

There may be instances where you may have to ship other’s goods in your vehicle. Your coverage won’t protect other’s goods in such cases. Hence, you 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 hours, but what about off-hours? Therefore, a non-trucking insurance can shield drivers who use their trucks for non-work purposes. That way, drivers and their trucks are safe 24/7.

Rental Reimbursement

Suppose your truck goes out of commission due to an accident. You and your client are affected due to undelivered shipment. A rental reimbursement policy can provide you with truck rental costs in such situations. It can also prevent your logistics from getting hampered.

Bobtail Insurance

Trucks move without trailers every once in a while. A bobtail insurance provides coverage for tractors or trucks moving without trailers.
General-Liability-insurance-5

Standard Exclusions

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

Factors that Determine the Cost

  1. The type of vehicle you use
  1. The type of cargo you haul
  1. Driving records
  1. Your operating radius
  1. Your business location
Don’t know where to start? Get a quick quote here now!

Don’t wait until it’s too late! Get your affordable and custom-tailored truck insurance policy quote for your business today.