5 Types of Insurance that a Commercial Trucking Company should have!
Is trucking a major part of your livelihood? Then you have to find the right type of truck insurance that gives adequate coverage for a thing that you have worked too hard to earn it.
Whether you are an owner-operator or own trucking business. One of the most important things for you is carrying commercial truck insurance. The right type of policy coverage protects you and your heavy-duty truck as well as the public.
The state and federal bodies need some sort of vehicle insurance which highly depends on the type and volume of cargo you haul. However, sticking to the minimum insurance requisites is not sufficient to keep your trucks and business protected from several possibilities. This is why it is very important to consider your actual requirement. You may have to add extra coverage and opt for higher limits to get the right coverage done for your trucking business.
What is the need for truck insurance?
Having the right insurance coverage is part of good financial planning. It secures your business and trucks from hefty costs that you pay when your vehicle damages its parts, other vehicles, or people. The main reasons to purchase truck insurance are:
- Financial safety: No matter what amount of money you earn. Your financial health gets impaired by startling events. The best way to secure your money from such situations is to buy or renew the policy.
- Risk transfer: With trucking insurance, you transfer monetary risk from your head to your insurer. You are required to pay monthly premiums to get reimbursed when an unexpected event occurs.
- No stress: Any mishap can put your business on a long pause which can be financially and mentally disturbing. If you have a policy that covers all the monetary loss then you can minimize the financial stress that such circumstances bring.
- Mandatory: You must be aware that carrying vehicle insurance is non-optional. Almost every state of America requires truckers to carry insurance coverage whenever they are on the road.
- Peace of mind: Money solely cannot offer peace of mind, especially when you don’t use it in the right place. Truck insurance is a good investment that takes away all the financial stress when your vehicle causes or gets damaged after an accident.
What are the different types of truck insurance? Which insurance product is right for you?
An accident is not only fatal for a person but also costs exorbitantly higher when it occurs. That is why having blanket coverage with the right inclusions keeps your business and commercial vehicles protected all the time. It will provide abiding financial support when your vehicle collides with an object, person, or another vehicle. But knowing what type of insurance fits your business is tricky because there are so many products out there. Plus going with only the lower prices is a big no-no.
To give your vehicles the correct type of protection you need to understand its types. Once you gather the requisite knowledge you will be able to make the right choice for your trucks. Here are some of the common truck insurance that every commercial trucking company should have:
1. Cargo insurance
This insurance provides coverage for freight you haul in your commercial truck. Cargo insurance is not required by the law but if you want to work for a trucking company then they will make you buy it. If you don’t purchase it there are high odds that they will not hire you. The standard limit for this insurance is $100000 but you will be required to purchase a higher one if you transport valuable cargo.
2. Bobtail insurance
Bobtail insurance is also called non-trucking insurance. This policy protects your truck when it is operated without an attached trailer. If you lease your vehicle to a trucker and they use it for personal motives then you will require bobtail insurance. You need to decide whether you need this coverage or not in your lease agreement.
3. Physical damage
Physical damage coverage protects your truck or trailer if it gets damaged after an accident. Whether you finance your truck or not, it is a good idea to buy this coverage for your commercial vehicle. Your vehicle is your livelihood and if it gets badly damaged after an incident then you have to pay for the hefty repairs out of your pockets. You know very well that repairing a big truck doesn’t come cheap and if it physically damages a third party then you need to keep up with the medical cost as well. This can jeopardize the future of your business.
- Primary auto liability
You need to purchase primary auto liability insurance to drive legally on the road because it is mandatory by federal rules. You need to carry this coverage whenever you drive on the road with your truck or leased units. This insurance safeguards you when your truck causes bodily damage to people.
- Worker’s compensation policy
Worker compensation is a requisite in almost every state if you have employees that haul goods on behalf of your business. This policy covers all the costs including medical expenses of employees when they suffer on-the-job injuries or illnesses. This coverage also protects you against lawsuits and helps you stay obedient to state regulations.
Final thoughts
Truck insurance protects your business against all the potential risks that you might face when your commercial vehicle is on the go. It protects your property, as well as people from the damages, and costs when your vehicle causes it.
No matter what size of your business is if you are into trucking then carrying coverage is a must. Your insurance needs might be different and will keep changing when your business grows. But having the right protection will offer peace of mind and you will be able to focus on other vital aspects of your business. Now you know the importance as well as the types of insurance. Get the right coverage with instant insurance quotes today and ensure your fleet of vehicles from all the potential risks.
