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A Primer On Commercial Insurance For Your Business Trucks

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When it comes to purchasing commercial insurance for your trucks, you must research which types of coverage are best for your company and how to remain within your budget.
Types of Coverage

When you initially shop for commercial insurance for vehicles, you will notice that there are several different types of coverage. The types of coverage that you require will vary greatly depending on the type of trucks you own and the cargo you will carry.

One type of coverage that your fleet will need is commercial auto liability, which will pay for damage to property and bodily injuries in the event of an accident where your driver is at fault. Any vehicle that transports goods must have this coverage prior to registration.

There are also many optional types of coverage offered by truck owners. Some examples of typical policies include physical damage coverage and cargo coverage. Physical damage policies include collision coverage, which pays to repair or replace your vehicle if it is in an accident, and comprehensive coverage, which covers damage from fire and theft. Cargo policies replace any ruined or lost goods damaged in transport. There are also workers’ compensation and general liability policies if needed. Always check with your broker to find out exactly what your business needs.

Saving Money

If you want to save money on commercial insurance for your fleet, the first thing to consider is the ratio of your premium versus your deductible. Your premium is your monthly payment, and the deductible is the amount that you are willing to pay for damage and repairs before the insurer pays the remainder. The larger your deductible is, the lower your monthly premiums will be.

Business insiders believe that it is wise for most companies to purchase policies which contain the largest deductibles that they can afford so they can save on premiums. This works especially well when you, or any drivers you hire, are responsible, experienced, and have a clean driving record. Any moving violations or accidents can cause nervous insurers to raise premiums without notice regardless of a high deductible.

Outside of agreeing to huge deductibles, there are also other ways to save on commercial insurance premiums. You can contact the broker for any other policies that you currently hold and ask for a discount on any subsequently purchased policy.

There are also commercial insurance companies that cut premiums for drivers that obtain specific certifications or pass a particular course. Sometimes consistent truck maintenance, warning stickers, and security systems can earn a company a reduction in premiums as well. Check with your provider about any promotions that they may offer.

Set Up A Consultation

By now, you have a general idea of what you should discuss when you first consult with your broker. If you consider the types of trucks you own, your drivers’ collective expertise, and the nature of your freight, you should have no problem deciding which types of policies are necessary for your business. Don’t forget that you can save money by asking about any specials your broker may offer for safe driving or bundling products.

Truck Insurance – What Types You Need

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If you’re new to the trucking industry, perhaps you’ve already started researching what kind of truck insurance you may need. It can become confusing, as coverage will be needed for all different types of situations. The following list details the types of truck insurance available throughout your career.
Primary Auto Liability Required by law, primary auto truck insurance will cover anyone injured during an accident. Drivers need to carry this with them at all times, even on leased rigs. Companies will sometimes offer this liability to owner-operators, but drivers should also be prepared to pay for it out for their weekly settlements.

Physical Damage This kind of truck insurance takes care of rollovers or collisions, thefts, fires, or any actual damage done to your tractor or trailer. The value of the equipment will set the premium. Although the law does not require drivers to establish a vehicle premium, if you have financed your vehicle, the lien holder will require it. Value your vehicle at actual price, as the market price is what is paid at the time of loss.

Bobtail Liability Bobtail liability truck insurance covers a tractor without a trailer, whether or not the driver is on dispatch.

Non-Owned Trailer Liabilities There are three types of protection that fit under a non-owned trailer. The Non-Owned Trailer Liability covers a trailer that you are pulling for someone else. Non-Owned Trailer Physical Damage encompasses any damage to the other driver’s trailer while you drive it. Sometimes, these are verbal agreements between drivers or between driver and shippers, as they are very broad. Then, there is the Trailer-Interchange Liability that comes into place when there is an interchange agreement. In the trucking industry, it is common to exchange trailers to another driver until the cargo reaches its final destination. Therefore, if a trailer interchange agreement is in place, Trailer-Interchange Liability will be needed.

Cargo Liability This covers the freight when in transit. Drivers need to carefully read these policies and take note of exclusions such as unattended rigs and caps on theft for items such as clothing, alcohol, and electronics.

OCC/ACC (Occupational Accident) Liability Occupational accident liability coverage acts as a sort of worker’s comp. Accidental death, falls, dismemberment, and accident related medical expenses are covered under this protection. Policies should be written to incorporate most of the time while drivers are on dispatch. Drivers should consider adding or finding passenger liability, to cover others in the cab during a collision. Drivers who do not have health coverage should also search for non-occupational accident policies to take care of a limited number of injuries off the job.