Commercial truck insurance is vital for businesses heavily dependent on transportation and logistics. This type of insurance offers protection to vehicles and drivers. It shields the business from substantial financial losses from accidents, damage, or unexpected incidents.
Knowledge of the key commercial truck insurance coverages included in a policy can aid business owners in making well-informed decisions for extensive protection. The following are the top 10 most recommended coverages for a commercial truck insurance policy:
1. Primary Liability Insurance
Primary liability coverage protects against damage or injuries your truck may cause to other people or property. It typically includes both bodily injury liability and property damage liability. Primary liability coverage is mandatory. The Federal Motor Carrier Safety Administration (FMCSA) stipulates specific minimum coverage amounts.
2. General Liability Insurance
General liability insurance for a trucking company shouldn’t be confused with primary liability insurance; it serves a different purpose. This coverage for your commercial truck insurance policy extends beyond auto-related liabilities to protect businesses from a range of potential risks. It includes coverage for injuries or damage on your premises or because of your business operations, even if they’re not directly related to trucking activities.
3. Physical Damage Coverage
Physical damage coverage protects your trucks from damage resulting from accidents, theft, vandalism, or natural disasters. This commercial truck insurance coverage typically consists of collision insurance, which covers damages from accidents and extends to non-collision-related damages.
4. Motor Truck Cargo Insurance
Cargo insurance for commercial truck insurance policies protects against potential financial losses related to cargo. This insurance for a trucking business covers losses from damaged or lost transported cargo, legal fees, and freight charges.
5. Bobtail Insurance
Bobtail insurance is a type of coverage specifically designed for trucks operating without a trailer attached. It provides protection during transitional periods, such as when truck drivers are en route to pick up or drop off a load. This coverage is for legal costs, damages, and healthcare expenses when a truck is operated under another individual’s trucking authority without an attached trailer.
6. Non-Trucking Liability Insurance
Non-trucking liability is commercial truck insurance coverage that protects trucks when drivers use them for personal purposes, such as running errands on a day off. This coverage includes medical expenses, property damage, and legal fees associated with the driver.
7. Trailer Interchange Coverage
For companies operating under a trailer interchange agreement and utilizing trailers, they do not own, this specific coverage offers protection against any physical harm that may occur to the trailer while it is under your care. The trucker in charge will be held accountable if a trailer is damaged. This commercial truck insurance policy covers damages when the policyholder possesses the trailer.
8. Rental Reimbursement
Rental reimbursement coverage with downtime could cover truck payments and other related expenses when the truck is out of service due to a covered loss. This coverage may also include compensation for a temporary replacement vehicle.
9. On-Hook Coverage
On-hook insurance covers damages that may occur to a vehicle while it is being towed, ensuring protection during transit. Tow trucks pose a distinct risk as they are responsible for transporting vehicles that belong to other individuals or businesses. The truck may be damaged, and the vehicle being towed may suffer additional harm.
10. Workers’ Compensation
Workers’ compensation is vital for any business with employees. This coverage ensures workers are injured on the job, including truck drivers. It can provide financial protection for employees and employers by covering medical expenses and income replacement in case of work-related injuries or illnesses.
Protect Your Trucking Business
Choosing the right mix of these coverages and how much commercial insurance for a truck costs depends on various factors for your trucking business. You should work with an insurance provider knowledgeable about the trucking industry. The Colby Group can help you find the best policy for your business.
This post is for informational purposes. The details and conditions of insurance policies vary. We always recommend speaking with an agent to understand the terms of your existing policies and the policies you plan to purchase.
To consult with an insurance advisor, call 800-392-6532 or email insure@colby-group.com.
