Commercial trucking companies can involve a team of drivers or just one sole proprietor. The type of commercial insurance you need will depend on the type of trucks you use and what you transport. Experienced drivers can help lower risks and insurance costs. Here's what you should know about insurance for a trucking company.
What Is Commercial Trucking Insurance?
Businesses that use trucks for transporting items need commercial trucking insurance, as opposed to personal auto insurance. There are some cases in which you may use your truck for both personal and professional use, in which you'll still need commercial insurance to fill in gaps not covered by personal insurance.
Typically, insurance for a trucking company involves coverage for a fleet of vehicles, which can help lower insurance rates. Federal law requires primary liability coverage as part of a trucking license. This coverage pays the bills of accidents involving third parties.
Types Of Commercial Trucking Insurance
While primary auto liability is required on a federal level, your company may need additional trucking insurance coverage to satisfy state requirements as well. Here are common types of commercial trucking insurance plans:
- General Liability - Each state requires trucking companies to carry this coverage, which pays for damages and injuries to third parties. It may also cover mishaps with loading. This coverage can further pay for costs associated with lawsuits.
- Physical Damage - This coverage pays for damage to your truck due to vandalism, theft, collision and certain other disasters. It may also pay for a vehicle replacement if the damage is too costly to repair.
- Non-trucking Liability - Also known as bobtail, this coverage fill gaps in primary liability coverage. It can cover drivers using trucks for personal use but not for commercial use.
- Motor Truck Cargo – If the cargo of your trucks is lost or damaged, this coverage will pay for losses. Many times cargo is inventory owned by the companies paying for shipping services.
- Rental Reimbursement - This coverage pays for renting a replacement vehicle while your truck is in the repair shop. It helps maintain a regular flow of business instead of suspending projects.
- Trailer Interchange - A non-owned trailer that is damaged due to collision, vandalism, or various other reasons is protected by this coverage.
- Medical Payment - This coverage pays for accidents involving drivers or passengers leading to medical bills.
- Uninsured/Underinsured Motorists - Even though all states require minimum commercial auto insurance for businesses using vehicles, it's still possible to collide with an uninsured or underinsured motorist. This coverage pays for accidents caused by such drivers lacking required liability insurance.
- Reefer Breakdown - Refrigerated trucks need this coverage if refrigeration breaks down. It also pays for lost or damaged cargo. Be aware that some of these plans have exclusions that don't cover certain items, such as tobacco products.
When determining your commercial insurance needs, consider the specific risks your company faces and go from there. Don't just settle for the cheapest coverage. Larger trucking firms usually need much more diverse coverage types than companies with sole owners or small teams.
Consult with Graystone for Right Trucking Coverage!
The best way to get the best trucking coverage at affordable rates is to work with insurance experts. Our team at GrayStone Insurance Group is ready to help you find the right insurance for your trucking company based on your business model. Contact us today to get started!
