Owning a trucking business offers massive perks but it is a highly challenging industry to be in. Therefore, protecting your operations from all types of likely adversities is one of the key elements that make your trucking company successful. You cannot control unforeseen circumstances due to obvious reasons. However, you can insure your commercial vehicles from the n-number of possibilities in the form of commercial truck insurance.
Whether you run one fleet or operate multiple commercial vehicles under your name, you need adequate truck insurance to operate smoothly and legally on the road.
To our surprise, many small business owners still are not aware of this essential coverage. As a result, they end up draining their funds after experiencing huge damage in an accident. We don’t want your funds to be impacted after such incidents, so we will tell you what commercial truck insurance is and why it is important to invest in this coverage. Let’s get started!
What is commercial truck insurance? Why do trucking businesses need this coverage?
Commercial truck insurance is a customized policy that protects various trucks and other commercial vehicles against potential risks on and off the road.
This policy covers the insured against losses and damages done or experienced in an accident, fire, explosion, natural calamity, collision, and other adversities. Additionally, some trucking policies are also law mandated and have to be obtained to carry operations legally within or interstate. So, commercial truck insurance helps you stay adherent to the law as well.
Incidents either small or big are capable of depleting your finances and putting the entire trucking operation on hold. If a trucker invests in adequate commercial truck insurance, it helps him to kickstart the operations ASAP even after experiencing heavy losses followed by accident.
There are many reasons for investing in a commercial truck policy after getting your trucking authority. Let’s discuss some of the major ones.
1. Liability protection
Accidents not only impact your own commercial vehicle but also cause huge damage to property, people, or both. If you or your driver happen to do physical injuries or property damage to the third-party property in a collision or accident, you are liable to pay for the medical bills, property repair, and sometimes lawsuits as well. All these expenses are very costly to meet, especially for small trucking businesses or individual truckers.
Truck insurance like primary liability coverage helps you pay the cost of property damages, bodily injuries, or both faced by a third party in an accident. This policy is mandated and minimum insurance requisite by the state for many truckers. Taking adequate commercial truck insurance not only protects your operation but also covers the other people on the road.
2. Comparatively wider than a typical auto policy
A typical auto insurance coverage such as a car insurance policy doesn’t offer wider coverage against various possibilities on the road. This policy has liability limitations that are not appropriate for trucking businesses. An auto policy doesn’t offer enough coverage to safeguard your business against various likely damages and losses that tag along with an incident.
Whereas if you obtain commercial truck insurance for your business, you get suitable protection. You get widely covered against the actual risk exposure that your business experience daily. You can protect yourself from a likely heavy financial loss with this policy.
3. Comprehensive protection
Collisions are not the sole factor responsible for experiencing heavy loss or causing damage to a trucking business. There are several potential risks like an explosion, fire, vandalism, theft, natural calamity, etc. that immensely damage your vehicle and the cargo you haul. Here commercial truck insurance is a boon to many truckers as it protects them against all such circumstances.
Depending on the level of coverage, you get the reimbursement of fleet replacement or repair costs after it gets impacted in an accident. Here are some of the major types of truck insurance that protect you against various risk exposures:
- Primary liability
- General liability
- Motor truck cargo insurance
- Workmen compensation
- Physical damage coverage
- Bobtail coverage (non-trucking liability)
- Medical payment
- Uninsured/underinsured motorist
4. Great for reputation
Lawsuits, bulky fines, accidents, traffic violations, etc. massively impact the reputation of your business. These elements can defame the goodwill of your company and you can lose your customers. Investing in the right commercial truck insurance helps you maintain a clean record and attract many new customers as well.
Many trucking companies cover not only their operations but also the drivers and employees associated with the business. Coverages like workmen’s compensation policy protect the drivers and employees against various incidents that lead to damage and bodily injury. This policy not only shows that you care for your worker’s lost wages and other outlays but also keeps your trucking business reputation intact.
5. Lawsuit coverage and medical expenses
Accidents and collisions often lead to physical injuries and even cause the death of an individual. The cost of medicine and other medical expenses doesn’t come cheap. Deaths and bodily injuries not only attracts medical expenses but also leads to various lawsuit by the affected party. In the absence of commercial truck insurance, you will have to pay all these hefty expenses out of your pockets.
If you take adequate truck insurance, the cost of medical and legal expenses will be covered for your business. You can also further customize your policy according to the level of risk you are exposed to get completely covered.
Accidents and collisions occur unexpectedly. A mishap can occur between making deliveries, off-dispatch, unloading, offloading shipments, driving, etc. Without commercial truck insurance, your business can suffer a heavy financial loss to patch these expenses.
The absence of this policy is also bad for your business reputation. Therefore, it is wise to invest in the right commercial truck insurance without fail.
As there are countless insurance providers in the market, make sure that you choose the right one after considering all the essential factors to get the best coverage for your money spent!