If your truck is used for service a business, truck insurance is non-negotiable. Commercial insurance is necessary if you provide services like transporting people or goods at a fee, having employees operating the truck, and any other commercial activity.
Commercial insurance is not exclusively for companies with trucks for hire or carrying cargo. It is necessary for any business that uses its trucks in commercial activities. Whether bakeries, snow plowers, food trucks, landscaping companies, caterers, delivery trucks, garbage trucks, tow trucks, cement mixers, manufacturers, and the like.
If you fall under any of these categories, here’s an inside look at commercial truck insurance policies you may need to get.
Motor Truck Cargo Insurance
A truck cargo insurance is a policy covering the goods transported in your commercial truck. Remember that this is not the same as the policy that covers the truck itself. A motor truck cargo cover protects the insurance company in case of theft, damage, or loss of goods transported.
If calamities like fire, being stuck in a storm, or collisions strike you, the coverage protects the freight charges for hiring truckers to haul from one location to another. Truck cargo insurance will cover the commodities.
The specific protection you’ll receive from this policy is extensive. It’s crucial that you read through exactly what your provider is offering. Here are some common calamities to look for in this coverage:
- Stolen cargo
- Debris removal
- Refrigeration breakdown
- Fires
- Storms
- Collisions
General Liability Insurance
General liability is a commercial truck insurance cover that protects a trucking company if property or someone suffers injury or damage due to the company’s negligence. The keyword here is a liability. This form of insurance is mandatory in many states due to how common the occurrence is.
Having to pay off damages in a liability suit can dive deep into your funds or even crash a company’s finances. For instance, if a third company contractor is hit by one of your trucks, they can sue you for their medical bills and, in some cases, lose future wages when they cannot work due to the incident.
Your general liability insurance cover responds to such claims;
● Physical Damage Insurance
A physical damage cover is an essential commercial truck insurance policy to have. The cover protects you when there has been physical damage to the vehicle. The policy covers the cost of replacements, repairs, and any other expenses that may surface.
An example of added cost is hiring a rental truck, as yours is in a repair shop. Irrespective of whether your truck is sitting in the garage most of the time or on the road with the best driver, unplanned accidents can occur at any time. Imagine a sudden storm strikes your company parking lot. You can rely on a physical damage cover to cater to many of your repair costs.
● Auto Liability Insurance
Commercial auto liability insurance is commonly referred to as business auto insurance or commercial truck insurance. While auto liability compromises multiple policies, it is also part of comprehensive coverage packages with some providers.
An auto liability policy covers bodily injuries and property damage in the event of a collision leading to property damage and injured people. The policy sometimes extends to protecting your company from losses related to vandalism, weather conditions, and crashes.
While this auto policy intends to protect the business owner and their assets, the same protection extends to workers and third-party drivers hired to operate for commercial purposes.
Non-trucking Liability Insurance
A non-trucking policy has similar coverage to general liability insurance, only now for circumstances when the truck is used for non-business purposes. It is a commercial truck insurance policy that is especially great for truckers that use their trucks to run personal errands. Note that the policy will not extend its coverage if you transport any cargo.
Invest In Insurance For Your Commercial Trucks
Commercial trucks ferry cargo worth millions. However, accidents and unfortunate circumstances are not uncommon in the industry. The trucks are also operated by people with families who have lives to lead. An investment in truck insurance is no longer a recommendation but a necessity. The first step to getting the right coverage is educating yourself on the policies. Use the knowledge available to help you choose suitable commercial truck insurance for your trucking business.