Finding commercial truck insurance for new companies makes most truckers nervous. You might worry about finding the best deal and a reliable company. Knowing exactly how much coverage you need is also a big concern.
If you’re a new trucker struggling to make this stressful and confusing decision, the experts at FreightWaves want to help. In this guide, we’ll explore how to get the best coverage for your company’s needs.
What Kind of Insurance Do I Need for a Trucking Company?
The first question that you might have is “What kind of insurance do I need for a trucking company?” Federal law requires commercial vehicle insurance for all trucking companies. However, this may not be enough to protect a business completely.
The best coverage for your company is based on the type of cargo you haul, the size of your operation, and the routes you will travel.
We’ve put together this brief guide to help you evaluate your coverage needs and how to shop for the best policies.
General Liability
This standard trucking company insurance covers incidents unrelated to operating the vehicle. It covers third-party lawsuits for property damage, injuries, libel, slander, and copyright claims against your business.
Commercial Auto Insurance
Commercial auto insurance covers expenses related to accidents involving your company vehicles, including medical bills, physical damage, and legal costs.
Workers’ Compensation
If you have employees, most states require this insurance. It protects against lawsuits from employees injured on the job.
Motor Truck Cargo Insurance
Motor truck cargo insurance covers the cost of replacing lost or damaged cargo due to theft, collision, or fire. It also covers legal expenses and lost freight charges.
Trucking company insurance is more than a necessity. It also helps truckers establish their brand as a reputable business.
How Much Is Insurance for a Trucking Company?
Trucking insurance ranges in price based on several variables. Low-cost insurance may end up costing more later due to hidden fees or add-ons.
So, how much is insurance for a trucking company? Generally, the cost can range from $9,000 to $15,000 per year for complete coverage.
How Does Trucking Insurance Work?
Most insurance providers allow truckers to pay the premium on a monthly installment plan, but they may require an upfront down payment.
Deductibles also affect monthly payments. Low deductibles reduce the amount you pay in the event of a claim. With a low deductible, however, the amount of the monthly premium is higher.
Benefits of Insurance for New Trucking Companies
The high cost of insurance for a new trucking company can put a big dent in a trucker’s budget, but the benefits are worth the costs.
Minimizes Financial Loss
Without insurance, truckers may face bankruptcy after an accident. Paying for injuries or property damage can deplete the company’s operating funds.
Business Continuity
Insurance covers lost income, operating expenses, and the cost to restore operations after a claim, allowing you to keep your business running.
Protects Company Image
Uninsured truckers can’t pay for liabilities after an accident, so the company image can suffer. Customers want to know they’re dealing with a reputable, responsible operation. When your company is fully covered, customers are reassured.
Provides Total Coverage
Besides coverage for accidents, truckers need protection from other occurrences as well. For instance, commercial vehicles are susceptible to theft or fire. Most insurance companies offer coverage for these potential losses.
5 Steps to Get Insurance for New Trucking Companies
Finding the best insurance for new trucking company owners requires some planning and research. Follow these suggestions, and the process will be easier.
Step 1: Evaluate & Understand Common Risks
Commercial truck insurance for new companies differs for many reasons. What works for one company may not be the right choice for you. Keep in mind that in the world of trucking, insurance is different from standard auto insurance.
To avoid being underinsured, make a list of the potential risks that should be covered. The risks may include driver injuries, vehicle damage, lost or damaged cargo, and loss of income after an accident.
Step 2: Determine Your Coverage Needs
What kind of insurance do you need to start a new trucking company? The first thing to consider is trucking company insurance requirements. An umbrella policy might be a good option. This type of policy covers general liability, vehicle liability, and worker’s compensation costs.
Do you want liability coverage once a load is delivered? Bobtail liability offers coverage when a truck is not being used for haul or work-related purposes.
Of course, you also need to consider the value of your semi. How much would it cost to replace it after an accident? There are many factors to consider when determining the right insurance coverage.
Step 3: Shop Around & Compare Insurance Providers
Commercial truck insurance for new companies is expensive. But some providers offer cheaper rates than others. Take time to shop around and compare rates. Ask questions about waiting periods, claims, payment options, deductibles, and the amount of coverage you’ll have.
You can save time in your search for an insurance provider by using an online insurance rating agency. They provide customer reviews, ratings, and comparisons of many top companies.
Step 5: Review Your Coverage Needs Yearly
Reviewing your insurance coverage needs helps truckers avoid the risk of being underinsured or paying too much. If your fleet has grown, you’ll need more coverage. This is important because you may also qualify for multi-truck discounts.
If you’ve added new clients, they may require that you have sufficient cargo insurance for their loads.
Have you changed or added the types of cargo you will haul? If so, you should check to see if your policy covers these changes.
If your policy is up for renewal, assess the status of your company and evaluate any newly added risks that may affect your coverage.
Fully Insured Truckers Are Confident Truckers
What kind of insurance do you need to start a trucking company? First, you need the type of company that provides the best coverage for your dollar. One that offers you peace of mind, confidence on the road and specializes in commercial trucking insurance.
Look no further than Trucker’s Affiliate Program (TAP) partnered with Cornerstone Insurance. TAP offers licensed agents nationwide–available 24/7. Get your free and fast quote today!
FAQ
The insurance policy specifies who is covered in the event of a loss. While all drivers should be scheduled on the policy, drivers with permission to drive does not guarantee coverage. It is recommended to speak with a licensed insurance agent about your specific needs.
As an owner-operator or business owner, general liability is encouraged to help
protect the business from an occurrence where the truck is not involved.
First, get experience in the trucking industry. Next, create a business plan, legally establish the company, obtain the necessary licenses/permits, get a truck, buy insurance, and find loads.
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