The trucking industry plays a critical role in the economy. Trucking moves more than 71 percent of all freight in America, according to Business Insider, and the trucking industry accounts for nearly 6 percent of all full-time jobs in the U.S. Commercial trucking insurance is essential coverage for independent truck drivers and businesses that use trucks in their operations.
Adequate insurance coverage helps protect commercial trucking companies from financial challenges due to theft, vandalism, accidents, and other disasters.
What Is Trucking Insurance And What Does It Cover?
Commercial Trucking Insurance is a specific division of auto insurance aimed to meet the unique needs of trucking businesses. The type of coverage and amount of protection is based on several key factors, such as the type of truck, the value of goods being transferred, and the amount of experience the driver has.
Many types of businesses can benefit from acquiring a commercial trucking insurance policy, including commercial transportation companies, independent owner-operators, and any business that uses trucks or deals with transportation-related activities.
Trucking businesses can choose from basic coverage, which includes collision coverage and comprehensive insurance, or specialized coverage that protects against a much wider range of scenarios. Some policies offer coverage for incidents that occur during packing and unpacking, storage of goods while in transit, and loading and unloading. Additional coverage options not related to the transportation of cargo are also available, such as bobtail insurance and occupational accident coverage.
Products that become lost or damaged during transit due to third-party interference, mishandling, or other causes may also be covered. This includes damage caused by vehicle accidents, impact fires, explosions, theft, vandalism, or malicious damage. Businesses may acquire commercial trucking insurance to ensure that their products arrive at the intended recipient’s location without incident.
What Types Of Commercial Trucking Coverage Options Are Available?
Companies that transport goods may require a variety of coverage types to protect their business and assets from certain risks. Some key coverages that companies should have include:
- Liability and Physical Damage Coverage – Primary truck or vehicle liability coverage is essential for businesses that use commercial trucks to transport goods. The amount of coverage needed will depend on the value of the products being transferred and the type of truck. For example, 18-wheeler trucks are usually more costly to repair than box trucks.
- Workers’ Compensation Coverage – When an accident occurs on the road, there is always a risk that an employee could become seriously injured. Occupational accident coverage is an alternate type of insurance for businesses composed of owner-operators, or “nonemployees.” Workers’ compensation insurance is required in many states in the U.S.
- Excess and Umbrella Coverage – Depending on the level of risk that a company faces, it may be necessary to increase the ceiling of coverage to a higher limit. Excess or umbrella coverage provides businesses with different options for bumping up their insurance limit or bridging gaps that help keep their company safe from costly claims.
- Cargo – Regardless of what type of product is being transported, there is always a risk that damage could occur during transit to its destination. Cargo coverage helps protect against the destruction of goods while in transport.
How Much Does Commercial Trucking Insurance Cost?
One of the most common questions asked by businesses about commercial trucking insurance relates to cost. There is no clear-cut answer as the cost of coverage is dependent on a variety of factors. Larger companies with more vehicles and employees will likely pay more for insurance than smaller companies with just a few vehicles. Here is a breakdown of what factors influence the cost of insurance:
1. Fleet
The number and type of vehicles that a business owns will significantly impact the cost. Businesses with more vehicles or vehicles that have a high retail cost will encounter higher premiums.
2. Drivers
When providing an estimate for commercial trucking insurance, the insurance company will take into account the number of drivers on the payroll. Insurers may also review individual driving records to determine their level of risk. Accidents and major violations have an impact on commercial truck policies.
3. Radius
Insurers use the radius to calculate the policy premium. The radius is considered to be the distance from the garaging location to where the commercial vehicle will travel. Will the fleets travel locally? Or are there long-haul routes that increase the amount of time on the road, thus increasing the level of risk?
4. Usage
Another common factor that can influence the cost of commercial trucking insurance is the utilization of transport vehicles. Insurance companies consider the type of work that the drivers and vehicles perform.
Request A Quote For Commercial Trucking Insurance
Without commercial trucking insurance, businesses are never fully covered when transporting goods from one destination to another. Commercial trucking insurance policies provide companies with ample protection against damage and losses, while also giving business owners peace of mind. For more information about commercial trucking insurance or to request a quote for coverage, contact the insurance experts at Burton & Company today.
