If you’re thinking about starting your own trucking company, the insurance coverages you need will determine how safe your drivers and vehicles are and how you take care of your customers’ cargo. According to Simplex – truck insurance companies should provide outstanding insurance coverage whether you’re a novice owner-operator or a seasoned long-haul trucker.
Why is Insurance Important for Trucking Companies?
Commercial truck insurance is required if your truck is used for hauling goods from one location to another. It is not negotiable to have transportation insurance coverage if you use your vehicle to provide services, transport people or things for a charge, or employ somebody to drive the vehicle.
Companies that transport freight or have vehicles for rent are not the only ones that need commercial trucking insurance. This form of insurance is required for any company that employs vehicles for commercial purposes. Bakeries, landscaping businesses, food trucks, caterers, manufacturers, handyman services, garbage trucks, and snowplows are just a few examples.
Types of Coverage
Depending on the size of the company, the number and types of vehicles, and the type of freight, commercial truck insurance providers offer several forms of coverage. The most common ones required by the FMCSA are as follows:
- General Liability Coverage for Truckers – This covers any accidents or mistakes made by the truck driver.
- Primary Liability Coverage – This doesn’t protect your truck, but it does cover any harm done to others while it is being driven.
- Physical Damage Coverage – Covers the cost of repairing or replacing your equipment if it is stolen or damaged in an accident.
- Non-Trucking Liability Insurance – Coverage for damage or injury to others on personal time when the truck is not under dispatch.
- Cargo Coverage for Motor Trucks – When it comes to securing your cargo, be sure your insurance protects you no matter the risk — stolen products, wet loads, refrigeration breakdowns, debris clearance, etc. It’s critical to have a Broad Form cargo coverage rather than a Specified Perils policy.
- Trailer Interchange – Non-owned trailers utilized under a trailer exchange agreement are covered under this insurance.
- Medical Payment – If you or a passenger is hurt while driving or riding in the tractor, this coverage pays for your medical expenditures (coverage varies from state to state).
- Uninsured/Underinsured Motorists – This policy covers you if your truck is damaged by someone who does not have liability insurance.
Analyzing Your Insurance
Examining your coverages is also crucial. Cheaper insurance is useless if it doesn’t provide the protection you require. Some fundamental liability coverages are identical among insurers, but some additional coverages, such as cargo, should be carefully considered.
Specified Perils cargo coverage is available from several insurance companies. If your loss occurs outside of the policy’s specified loss criteria, you may be responsible for the cargo loss.
To ensure that your cargo is protected if something goes wrong, look for an insurance company that offers Broad Form cargo coverage.
You want to be sure that your insurer you choose is trustworthy and will be there for you in the event of a loss.
Founder Dinis Guarda
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