How Does Commercial Truck Insurance Work?
By Space Coast Daily // June 23, 2021
Commercial truck insurance is essential for covering small businesses that offer trucking services. It is especially available to larger companies, as insurance can be expensive for a small business that owns a truck or two.
The options might differ depending on the type of truck, the risks involved, and the number of years’ experience the driver has. The insurance coverage you choose for your business will involve many different types of policies, and fully understanding how these works will help you determine the options you need most.
Primary auto liability insurance
If you own a company of trucking services, then you might purchase primary auto liability insurance. It’s essential to buy it, regardless of the type of vehicle you use.
The Federal states have made it compulsory for drivers to have this type of insurance. If you avoid it, you are likely to risk running into major legal issues. Primary auto liability insurance will help your business be protected from liability in case someone else is injured in an accident caused by one of your company’s employees who uses the truck.
General liability insurance
This is another important type of coverage you are required to purchase in all states across the world. It will protect you and your truck drivers in case they source property damage or injuries to another person due to an accident. General liability insurance also will protect you from the actions of a driver who works on someone else’s property. You shouldn’t really consider running a trucking company without general liability insurance.
Apart from the necessity of general liability insurance that protects your drivers when they are behind the truck’s steering wheel, you also need bobtail insurance. If one of your drivers has an accident while they load the truck, a general liability insurance won’t cover the damage created.
For this reason, it’s essential to look for cheap bobtail insurance to protect the truck driver when they drive while not on dispatch or without a trailer. Bobtail coverage will cover all the damage created when the operator isn’t protected by the primary liability insurance.
Most people don’t understand that trucking insurance will help them avoid enormous losses for their companies. It’s good to know that these policies are created to protect against risk exposure. So, it’s always a good idea to ask questions to the insurance company before making a decision.
Trucking insurance is a very important aspect of a business. It makes a lot of sense to work with a broker who can find you the best rates available on the market. Insurance can seem costly in the beginning, but eventually, you will realize how much it costs to replace a truck, or cover any medical bills of an injured employee.
Trucking insurance might seem costly, but trucks are even more expensive. Now that you understand the importance of insurance for your trucking company, you might be able to make better decisions now about the policies to cover your business’s needs.