What Should Your Commercial Truck Insurance Policy Include?

One of the most crucial elements of operating a successful trucking business is having comprehensive commercial truck insurance. But with so many different levels of coverage and optional add-ons available, it can be challenging to know what your policy should include.

Liability Coverage

The first part of your commercial truck insurance policy should be liability coverage. Liability covers you if you are responsible for damages or injuries sustained by others in an accident. Most states legally require some form of liability coverage. However, the minimum requirements in each state vary, so check the rules in your state before deciding on how much liability coverage to purchase. Selecting the right level of coverage for your business can be a balancing act between sufficient protection and manageable costs.

Physical Damage Coverage

Physical damage coverage covers damage to your vehicle, regardless of whether it was your fault. This type of coverage can come in two forms: collision and comprehensive. Collision covers damage to your vehicle in the event of an accident, while comprehensive covers damage caused by other factors such as weather events or theft. Consider the truck's value and how much you could financially handle if it was totaled before deciding on the level of physical damage coverage you need.

Additional Insureds

Depending on the type of business or cargo you are carrying, there may be specific requirements for being listed as an additional insured under your policy. This could include lenders, clients, or contractors. Review your policy and determine if additional insured coverage is necessary for your business.

Non-Trucking Liability Coverage

Non-trucking liability coverage is commonly referred to as "bobtail insurance" and is crucial for owner-operators who use their truck outside of working hours. This type of coverage protects you in case of an incident while using your truck for non-work-related purposes, such as driving it for personal use. Your regular commercial truck insurance policy will not cover you without this coverage.

Cargo Coverage

Finally, you may also consider adding cargo coverage to your policy. This type of coverage will protect the goods you deliver if they're lost, damaged, or stolen. The cost of cargo insurance varies depending on the coverage you need, the type of cargo you're hauling, and other factors. However, given the high cost of transporting goods, cargo coverage could be a particularly important add-on to help protect your business.

Selecting the right commercial truck insurance policy can be a complicated process. However, you can make an informed decision by understanding the different types of coverage available and knowing your business's needs. Always double-check the coverage amounts requested by clients, shippers, or third parties when working with them to ensure your policy covers all necessary fields. As your business grows and changes, keep your insurance policy updated so that you're always protected should the unexpected occur.

To learn more about commercial truck insurance, contact a provider near you.