Important Facts to Know About Commercial Truck Insurance

Every form of business has its own set of needs, and you’ll need a unique type of insurance to safeguard it. Similarly, for trucking companies or independent truck drivers, a commercial truck insurance coverage is critical in reducing the risks associated with the trucking company. The main phrases under commercial truck insurance policy for truckers are outlined here.

About Commercial Truck Insurance

Commercial truck insurance is a sort of commercial vehicle insurance that covers trucks used for a variety of tasks such as pick-ups, loading, moving and packing, delivering, and transporting. Trucks are classified as heavy-duty vehicles, and their runtime is often longer than that of other vehicles, making them more vulnerable to road accidents.

Truck insurance is necessary to financially safeguard any trucker against unanticipated damages or losses caused by accidents, natural or man-made disasters, fire explosions, or thefts. As a result, it is preferable to get truck insurance online and be protected at all times.

Important Words to Be Aware of When Purchasing a Commercial Truck Insurance Coverage

Before you begin getting truck insurance quotes from various insurers, you should be aware of the many types of coverages available under your commercial truck insurance policy. You won’t know what you’re quoting for and what’s essential to you if you don’t know what you’re quoting for.

The Following Are Some of the Terminologies Used in Your Truck Insurance Policy:

Basic Coverage:

Collision damage and comprehensive insurance are examples of basic or primary coverage. Collision damage insurance covers the cost of repairing your truck if it is damaged in a third-party collision. Comprehensive coverage is comparable to standard auto insurance. It pays for car repairs caused by natural or man-made disasters, theft, fire-related incidents, accidents, and so on.

General Liability Coverage:

General liability (GL) insurance protects your trucking company against property damage and physical harm that may occur as a result of a truck accident. Under GL, personal and advertising injuries are also covered. It also covers damages to rental properties or premises coverage utilized in the trucking industry.

Cargo Coverage:

If you own a trucking company that transports products, you must also insure the shipping cargo. It compensates for any losses incurred as a result of items being destroyed or stolen while being transported in a trailer. Depending on the sort of cargo insurance you have, you may be covered for things like cargo theft, damage, scrap clean-up, and so on.

Physical Damage Coverage:

Physical damage coverage is a set of coverages included in your truck insurance policy that are meant to safeguard your truck. Collisions, rollovers, theft, vandalism, and other types of damage are all covered. This form of coverage is especially advantageous if your truck is not leased or financed. If you own or operate a trucking company, you must purchase a type of physical damage insurance called as Combined
Additional Coverage (CAC).

It includes situations that aren’t linked to collisions. In addition, most physical damage insurance policies have a deductible, which is the amount you pay out of cash when filing a claim. As a result, check sure your deductible is properly set.

Bob Tail Insurance Coverage:

Bobtail insurance covers you and your truck while you aren’t hauling a trailer or any other type of load. It also applies when you are not driving the vehicle after dropping off a load and the trailer on the road.

Non-trucking Liability Coverage:

Non-trucking liability insurance covers you in the event of an accident when driving your commercial motor truck for personal reasons. For instance, while relocating your home, employ a professional truck as a mover and packer. Your personal errands are covered under this policy; however, the concept of personal errands has been defined under your business vehicle insurance. As a result, before making a purchase, we recommend thoroughly examining the policy coverage.

Reefer Breakdown Insurance Coverage:

Refrigerated truck insurance, often known as reefer truck insurance, is for companies that carry perishables such as milk. Reefer breakdown insurance guards against the loss of chilled goods due to a technical failure or an accident. For most shippers, it is a need to haul, and it protects the motor carrier if the equipment malfunctions.

Medical Payments Coverage:

Medical payments coverage pays for injuries to you, your company’s employees, or anybody riding/driving the truck with your permission. It also covers the cost of an accident while driving the vehicle.

Choosing the Right Policy

Protecting your trucking company entails carefully safeguarding your assets. Whether you require basic truck insurance or additional general liability coverage, it must meet your requirements. Including it in your business expenditures will also help you avoid financial hardship in the event of an accident or tragedy.

Choose a firm that takes the time to explain coverage possibilities and provide you with options. A good business vehicle insurance policy will include a variety of coverages.

Primary coverage, for example, is essential, general liability may be required or advised by the insurer, and any extra coverage will increase your protection based on your business and needs. Consider the sort of business you’re in and worst-case situations before making a purchase.