If the millions of products that drive America’s economy are its lifeline, then truckers are the force that keeps it moving. Long-haul trucking gets products where they need to go, allowing consumers to enjoy them as soon as possible. From pharmaceuticals to furniture and more, trucking companies supply the country with the products it needs to function. Those trucking companies know to carry trucking insurance, but may not know to carry long-haul trucking insurance, missing out on the right coverage.
Long-haul trucking insurance offers financial protections basic trucking coverage does not. Here is what you need to know about long-haul trucking insurance, gaps you may have with basic trucking insurance, and how it works to protect your business across state lines.
What Constitutes Long-Haul Trucking?
Whether trucks operate within a single town or across the entire country, their coverage needs should align with the scope of their routes. Long-haul trucking is generally defined as a trip that covers more than 250 miles. Often, this takes truckers across one or more state lines, which creates additional challenges beyond those of protecting cargo and covering vehicle accidents.
Why Does Long-Haul Trucking Need Its Own Insurance?
Because long-haul truckers face very specific obstacles, their trucking insurance policies should be tailored to match. Long-haul truckers can secure specialized insurance, providing coverage beyond the standard options. One of the primary risks that long-haul trucking companies have is the differences in insurance requirements across states.
Rather than carrying separate insurance for each state in which the truck will operate on the way to its destination, long-haul trucking coverage fulfills the needs of all states on the trucker’s route. This may include variations in general liability protection, such as minimum coverage limits, or who must be named on an auto insurance policy.
The Coverages Long-Haul Truckers Need
Every trucking policy should be based on the circumstances and risk profile of the business; most long-haul truckers will benefit from the following policies:
- Liability coverage – Most states require some form of liability insurance. Long-haul trucks are often larger than those making shorter trips, which increases the risk of damage to property. Long-haul trucking insurance should offer liability coverage with cross-state application so one policy will address the mandatory minimums for multiple states. Such a policy should also consider the different types of at-fault laws per state; some are all-or-nothing, while others divvy up fault by percentages, affecting coverage needs.
- Collision and cargo coverage – Because long-haul trucking takes both driver and cargo through a wide range of road and weather conditions, it is important to purchase insurance that reduces the financial risk of moving into unpredictable territory. The policy should cover truck repairs or lost cargo that arises due to these unpredictable risks along the route.
- Specialized cargo coverage – Most long-haul trucks carry general merchandise, but some perform more niche transports. If your company relies on trucks to transport hazardous materials, pharmaceuticals, temperature-controlled cargo, or other perishables, you may need additional, more targeted coverage.
- Umbrella insurance – Some trucking companies work with high-value goods. The cost to replace this cargo may exceed policy limits; this can be covered with an umbrella policy. Others may contract with clients that require specific limits which can also be met through an umbrella policy. An experienced insurance provider can assess your value risk limits and policy limits to determine if an umbrella policy should be a recommended consideration of your coverage.
Is Long-Haul Trucking Insurance More Expensive?
While the financial compensation offered by long-haul trucking insurance may be more targeted and refined than general trucking coverage, it need not be the most expensive. Some options to reduce the cost of trucking insurance across state lines include:
- Bundle multiple insurance policies with the same provider to receive incentives and reduce administrative costs.
- Hire experienced drivers to reduce your company’s risk profile.
- Invest in continuing driver training and monitoring to demonstrate a commitment to safety.
- Keep trucks maintained to reduce the frequency of repair claims.
- Consider the company’s greatest risks based on past data to understand which types of coverage are the most necessary.
Most importantly, work with an insurer familiar with the long-haul trucking industry to receive customized insurance to avoid paying for unnecessary protection.
Get Long-Haul Trucking Insurance That Keeps Your Business Secure
If your business regularly relies on long-haul trucking, or if you are considering branching into this niche for the first time, securing the right insurance can prevent financial challenges from issues such as truck breakdown, cargo loss, or fines from insurance non-compliance in other states.
The professionals at Burton & Company can help you understand how to create insurance that protects your assets throughout their journey. Contact Burton & Company to receive a customized blend of insurance coverage recommendations that are suited to your business’ specific needs and goals.
