Rest assured while on the road, knowing that whatever happens, you’re covered. Trucking liability insurance allows you to drive your truck legally on the road. Depending on the type of coverage will cover injuries and damages done to other parties and yourself.
For professional businesses, the coverage can also cover your transport load. Trucking Liability Insurance is among one of the most costly parts of insurance packages for a company but will prevent you from having to pay fees in case of an emergency which can easily rack up into the millions.
How Does Trucking Liability Insurance Work?
Trucking Liability Insurance insures you or truckers that work for your company in case of an accident, or if any damages or injuries occur while working. Your insurance package will determine what and how much will be covered. This can protect you from law-suits or damage claims.
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What Does Trucking Liability Insurance Cover?
Depending on the type of insurance it will cover different costs. A broker will usually help you set up a package that includes all your needs. Be sure to give them as much information as possible.
Truckers General Liability Insurance covers your actions as a truck driver who is operating on a customer’s premises such as truck stops or loading docks. It will also cover any mistakes made with delivering the transport load.
Primary Liability Insurance will cover the damage you do to others and their property with your truck. However, it does not cover your truck.
Physical Damage Insurance will provide you with coverage for damage to your equipment in case of an accident or theft.
Non-trucking Liability Coverage covers damages and injuries that occur while the truck is not under dispatch with its company.
Motor Truck Cargo Insurance for protecting your cargo. This insurance can cover stolen goods, leakages, debris removal, and more. Be sure to pick a broad form policy to be insured in most scenarios.
Trucking Workers Compensation Insurance is company insurance that provides coverage for medical expenses, lost wages, rehabilitation costs, and anything you may require in case one of your drivers is in an accident.
Why Do Truckers Need General Liability Insurance?
As a truck driver, you operate a large, heavy vehicle with potentially hazardous loads. Therefore you have a bigger liability risk than regular automotive drivers.
General liability insurance for a trucking company will cover against common at-fault errors and cover damage costs or payout to the involved third party. You can assure your occupational and financial future by making sure you’re adequately insured.
Why Is Trucking Insurance So Expensive?
Trucking insurance is expensive because an accident in a truck can quickly add up to over a million dollars in damages. Even more, if you carry hazardous materials.
Is Insurance More Expensive For Diesel Trucks?
Generally speaking, insurance for diesel trucks is more expensive since diesel trucks are more expensive to produce than petrol trucks. Insurance cost is based mainly on the value of the vehicle.
Examples of “ Trucking Liability Insurance Coverage
- The trucker unloads heavy cargo onto weak shelving on a client’s premises, causing it to break.
- One of your truckers’ dogs bites a person at a truck stop, resulting in injury.
- Your trucking company is sued because it mistakenly used another company’s logo or slogan.
- A driver uses a forklift to help unload the truck but damages another trailer.
- Somebody slips while on your truck terminal, resulting in bodily injuries.
- A fuel hauler delivers fuel into the wrong tanks, which then causes engine damage in several vehicles.
Things to Consider with Trucking Liability Rates
Insurance packages come in different price ranges. Depending on your vehicle, cargo, and location, costs may differ.
USDOT Authority
To get USDOT authority, you must apply for a USDOT number at the FMCSA. There are three main types of operating authority. Depending on what your company does, you might need to apply for more than one of these. Application fees are $300 per separate operating authority.
Vehicle Type
Insurance rates are based on vehicle value and potential for damages. Meaning newer vehicles and larger vehicles that can carry more cargo are more expensive to insure.
State and FMCSA Requirements
If you have USDOT authority, it means you must comply with FMCSA requirements, which require you to have higher coverage than some states do. These requirements can increase your insurance rates.
Cargo
Your insurance rate is based on what cargo you ship. For example, produce will do much less harm in an accident than chemical products or heavy equipment.
Operating radius
A larger operating radius usually equals longer drive times between stops and less familiar routes. As a result, operating over many regions increases the potential risk, and therefore insurance rates.
Driving history
Accidents and traffic violations with a truck have the potential for much more damage than a regular vehicle. So drivers or companies with a history of such events can expect a drastic increase in their insurance rates.
Geographical Location
Different states have different insurance rates. Also, you are more likely to acquire traffic violations in certain states, such as California, which can impact your insurance rates.
Advantages of Trucking Liability Insurance
Having trucking liability insurance means you can rest assured that you’re covered in case something goes wrong while you’re on the road. Thus, saving you from potentially millions in damages or fees.
- Trucking liability insurance covers you and your company in case of an accident.
- You can customize insurance packages to fit your or your company’s needs.
- It will cover medical fees and damages caused to third parties.
- If your company is sued, your insurance can cover legal fees.
- It covers accidents that happen on your premises.
- You can insure your cargo against damage or theft.
Disadvantages of Trucking Liability Insurance
The main disadvantage of trucking liability insurance is that it is costly. It can also be hard to navigate the different types of insurances and coverages if you are new to the industry.
Why You Need Trucking Liability Insurance
So what is trucking liability insurance? Trucking liability insurance allows you to operate legally and covers potential damages. Policies can be changed and optimized to your or your company’s needs. Ultimately you can insure for any risks that come with the job.
If you transport hazardous materials and there’s spillage because of an accident, you’re covered. If you did not have insurance, you might be bankrupt. Trucking liability insurance makes it so you can get on the road without having to worry that a single accident will cause financial ruin.
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