Truck Insurance

Keep on Trucking

One of the most popular vehicles used in road transportation to transfer goods and services is trucks. Despite their popularity, trucks are prone to accidents and damages. Therefore, having truck insurance is very important. Furthermore, an article published by Statista shows that in 2019 the trucking business generated around $791.7 billion.

However, every year, there is an increasing number of accidents and other types of collisions involving commercial trucks. Thus, purchasing commercial trucking insurance is crucial for your business.

In this blog

Common Risks for Commercial Trucks

  1. Accidents: Accidents are unforeseen events and can incur hefty losses such as medical or repair bills. According to Injury Facts, 4,862 large trucks were involved in a lethal crash In 2018, a 51% increase from 2009’s record of lethal truck crashes. 
  1. Natural causes: Trucks transfer goods across different states. Each of these states is vulnerable to unique natural disasters, such as tornadoes or earthquakes.
  1. Cargo theft, damage or loss: Cargo is always prone to theft, damage, or loss while on its way to its final destination.
  1. Pollution: Trucks carry various types of products. So, some products may require specific containers due to their hazardous nature. If such goods were exposed to the environment, it 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 (18 wheelers or tractor-trailers)
  • Tank truck
  • Garbage truck
  • Box truck
  • Tow truck
  • Commercial dump truck
  • Car haulers and auto trailers
  • Flatbed truck
why-is-truck-insurance-more-expensive

How Much Does Truck Insurance Cost? 

Due to the high-risk nature of the business, trucking insurance premiums are some of the highest around. Furthermore, the Wall Street Journal has mentioned that the average cost of these insurance premiums rose by 42% over an 8-year period. Some of the factors that determine the cost of this insurance are:

  • Credit record
  • Driver’s experience and licenses
  • 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 prioritizes them differently.

Coverages Included in Truck Insurance

General Liability Insurance

General liability insurance provides coverage for claims arising from normal business operations, such as property damage, medical bills, or injuries (if one of your drivers gets into an accident). Furthermore, liability insurance will also compensate your legal defense costs, regardless of who’s at fault.

Worker’s Compensation Insurance 

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

Commercial Umbrella Insurance 

Commercial umbrella insurance reimburses you when your current insurance policy is not enough to cover losses. For example, imagine your truck crashes into an office building. Your workers’ compensation policy covers your driver’s injuries, but your commercial liability policy is insufficient to handle the cost of the claim against you for property damage. here, your umbrella insurance steps in to help cover the remaining costs.

 

Multiple coverage options on your fingertips.

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Standard Endorsements

Motor Truck Cargo Insurance

Motor truck cargo insurance protects the shipment that your truck carries. So, if your cargo is lost or damaged from collision 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 reimburses your repair costs and medical bills if you get in an accident with an uninsured driver. There may be instances when an underinsured driver hits one of your trucks and does not have enough insurance to cover your bills. In this case, underinsured motorist coverage can help you cover the rest of the bill.

Hazmat Coverage

Trucking companies sometimes ship hazardous materials for business. Suppose, a truck transporting hazmat gets in an accident. The insurance will step in to pay for property damage and bodily injury. However, it won’t pay for the damage incurred by the hazardous materials. Hazmat coverage is valuable for companies that frequently ship hazardous materials.

how-much-truck-insurance-cost

Livestock Insurance

Trucking jobs also sometimes involve transporting livestock. This livestock endorsement covers risks that may inflict harm on the livestock when transporting them.

Trailer Interchange Policy

There may be instances where you may have to tow another truck’s trailer. Your standard coverage won’t protect the other truck’s goods in such cases. Hence, you can purchase a trailer interchange policy to help you protect the trailer in case it gets damaged while in your possession.

Limited Depreciation Policy

A limited depreciation policy helps cover the cost of replacing your vehicle if it is declared a total loss.

Non-trucking

Standard trucking insurance protects you during business hours, but what about off-hours? Thankfully, a non-trucking insurance policy 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 is totaled due to an accident. You and your client are affected due to an undelivered shipment. A rental reimbursement policy can cover 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 policy provides coverage for tractors or trucks moving without trailers.

Standard Exclusions

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

Has this article been helpful to you? Leave a comment below and share your thoughts with us. 

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