Truck Insurance – What Types You Need

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.