Insurance is required for all trucking companies. Small owner operator trucking businesses are required by law to have liability insurance. Trucking companies should have sufficient insurance to protect their equipment, themselves and others on the road. It is possibly one of the largest expenses that the trucking company will have. Just as with your personal auto insurance. Truck insurance is based on various factors. This can include driving records of the drivers such as age of the driver and driving records. It will also include information about the company. This can include:
1.The type of commodities hauled
2.The types of equipment used
3.The age of equipment
4.The driving radius
5.The loss history
6.The number of years in business
Primary Truck Driver Liability Insurance is required in order for you to be able to legally drive your truck on the road. It consists of two components which are always included together. It includes Bodily Injury Insurance which covers other people involved in accidents in which you are at fault. Property Damage Coverage covers damage to the property of the accident victims. Currently, a truck driver must have at least $750,000 of liability insurance. This means that accident victims could potentially be awarded damages of $750,000 or more in the event of a catastrophic accident. Your insurance would cover $750,000 of that amount. However, they can seek to recover the remaining balance from you. Many trucking company owners choose to purchase a one million dollar liability insurance policy to provide them with additional coverage.
General liability insurance provides coverage for your truck when you are not on the road. It may covers accidents in parking lots, truckstops, loading or unloading locations, etc. It can also cover theft and vandalism. It may also cover accidents on your premises such as customers falling or slipping on your premises.
Bobtail liability insurance pays for accidents when the driver of truck is not under dispatch. This coverage is often referred to as deadhead coverage. Typically bobtail insurance protects a tractor when it’s being operated without a trailer.
Non-Trucking Liability insurance can pay for medical and related expenses for injuries or death that you cause to other people when you are not using your vehicle for non-business or personal use. It can also pay for any damage caused to the property of others. It does not apply when you are pulling a loaded trailer or using the vehicle for any revenue generating purpose.
Motor Truck Cargo Insurance covers damage/loss to freight in transit. Cargo insurance is a critical element in protecting the value of cargo that is in your possession. There are variations and different coverage areas in cargo coverage. The coverage can have various exclusions specified in the policy. This can include such things as unattended vehicle, freight located at terminals, etc.
You will need to decide what coverage you need and make sure that it is included in your policy. Be sure to read your insurance documents closely once you receive the policy. Otherwise, you might think you are covered for something when actually you are not. If something is not as you selected, take immediate steps to rectify the issue.
Physical Damage insurance is coverage for the truck and trailer. The insurance premium is based on the value of the equipment. It is important to insure the vehicle(s) for the correct value. There is no need to overstate the value of the equipment because the insurance will only pay the market value at the time of loss.
Passenger Accident Insurance covers accidental death and dismemberment coverage and accidental medical expenses for guest passengers. You will need this coverage if you routinely let guests ride along with you.