Commercial trucking accounts for a notable portion of the U.S. GDP; around $390 billion of economic contribution comes from in-house and for-hire trucks. Since trucks transport nearly 75% of the nation’s freight, it’s not surprising that drivers encounter numerous commercial vehicles on the roads almost daily.
Failure to properly insure a trucking company can lead to significant financial consequences, perhaps even enough to bankrupt some firms. When trucks require repairs or other issues arise, the resulting business interruptions can force companies to struggle to keep pace with competitors in this aggressive industry.
Here are some recommendations for the best commercial trucking insurance coverage types to keep your company competitive and secure your financial future against the industry’s biggest risks.
Commercial Auto Liability
The trucks used in commercial trucking tend to be much larger than the average vehicle, and with this size and weight comes the potential to cause more significant damage. A commercial auto liability policy can help avoid out-of-pocket costs if one of your drivers injures someone or harms their property.
General Liability
Most trucking companies cannot begin operations until they have sufficient general liability insurance. However, smart businesses secure more than the mandated minimum because they understand just how valuable this protection is.
General liability insurance safeguards your company against a range of potential financial losses resulting from legal liability. If your trucking company faces legal fees or needs to cover medical expenses for a third party injured during cargo unloading, this protection provides essential financial support.
Non-Trucking Liability
Some trucking companies have trucks that are used for both job-related tasks and off-the-clock driving. If your trucks are used for non-business purposes, commercial auto liability will not provide coverage. Instead, invest in non-trucking liability to maintain coverage during these gaps in operation.
Motor Truck Cargo
Few losses are as catastrophic to a trucking business as losing cargo. Whether due to vandalism, fire, theft, natural disasters, or accidents, lost cargo can mean significant financial consequences and the risk of damaging your reputation, particularly if you cannot deliver on time. Motor truck cargo insurance can help mitigate these consequences.
Physical Damage
Trucking companies rely on their vehicles to keep business moving smoothly and safely. If a truck becomes damaged due to a weather event, hitting a deer, or going off the road, it will need to be repaired quickly to stay on schedule. Many companies lack the financial resources to address major repairs. Physical damage insurance alleviates this concern by providing coverage for such expenses.
Umbrella
In many cases, commercial trucks face risks that exceed the maximum coverage of a standard insurance policy. If your business needs extra protection, consider umbrella insurance. This type of coverage can expand the limits of other policies to make sure you have the right protection amount.
Workers’ Compensation
Employees are the foundation of any trucking company. Protecting them with a workers’ compensation policy should be a top priority and is mandatory in most states. Workers’ compensation pays for employees’ medical bills if they are injured or sickened in the line of work. In the event of an employee’s work-related death, workers’ compensation will provide benefits to the family of the victim.
How to Manage Premiums
With so many potential insurance policies to choose from, some trucking businesses reduce coverage to lower costs. However, there are better options:
- Work with industry professionals. Those familiar with the trucking industry can offer guidance and recommendations that provide strong protection without overspending.
- Bundle. Grouping multiple policies from the same insurer can often result in lower premiums.
- Prepare. Investing in employee training or regular truck maintenance might cost more upfront, but it can reduce your risk profile, which may result in lower premiums.
Get the Right Commercial Trucking Insurance for Your Business
Commercial trucking is the centerpiece of American production. As a team player in this industry, you must prepare for the financial risks. The professionals at Burton & Company can help you identify the right policies for your business and how to prevent gaps in protection. Contact Burton & Company today to speak to trucking industry professionals.
