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 coverage 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.

2. Natural causes: Trucks transfer goods across different states. Each of these states are vulnerable to unique calamities.

3. Cargo theft, damage or loss: Cargo is always prone to theft, damage, or loss while on its way to the final destination.

4. 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 

• 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 trucking 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. Here you can find all garage door accessories. 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.