Truck Liability Insurance
Truck Liability Insurance is a must for staying legal and is required by State and Federal governments. Truck Liability insurance for truckers covers the legal liabilities the business might face from the damages or injuries caused to a third party by a truck. This form of insurance is the most expensive part of the trucker’s insurance package due to the higher exposure of the trucking operations.
While this is the costliest part of the total insurance package for your fleet, truck liability insurance will not compensate you for any physical damage to your vehicle. It does not cover damages related to theft, vandalism, fire, or other natural disasters either.
Truck liability insurance protects you from a range of losses caused by your trucking operations or employees. The minimum amount of liability insurance is set at $750,000 at present as per state and federal regulations and a proof of filing (MCS-90) filing is required to be sent to them. If your business is hauling hazardous materials, the liability limits will be higher.
Truck liability insurance helps you to meet the uncertainties associated with the business without losing your peace of mind. If you are operating a large fleet, it is essential that you take the advice of a reliable broker to find the best policy and insurance company that suits your business.
With smaller operations with 1 to 10 trucks, these policies are written on a specified unit basis. Each vehicle is listed separately with description and serial numbers attached.
Truck liability insurance is underwritten based on insurance company loss experience - normally for the previous 3 years. Loss experience and driver’s mvr reports are used to determine the premium of each policy. Other underwriting criteria are used in this process of rating.
For larger fleets and companies that require coverage for specific exposures can be issued on an any auto basis, owned, non-owned and hired vehicles, and sub-contractors.
Other considerations include pollution liability as it relates to the operation of vehicles, non-owned trailers and liability deductibles.
To get accurate pricing, request a truck insurance quote.
General Liability Insurance
General liability insurance covers the trucking operations for perils not provided for in the truck liability insurance policy. It can cover injuries or property damage for persons on your premises, advertising injury liability, contractual liability, pollution liability and other exposures inherent within your organization. Some insurance companies will consider adding limited general liability coverage to the truck liability policy.
The limits on these policies are normally between 300,000 and 1,000,000 with aggregate limits of 2,000,000.
A discussion with a knowledgeable agent is important so no exposure is left uncovered.
Truck Cargo Insurance
The Trucking Industry has moved close to 10.23 billion tons of freight in 2020. These figures will increase by a further 1.2% per year until 2045. Even as the rate of cargo movement grows steadily, there’s a constant risk of loss and damages when trucks are moving freight. The rise in the popularity of Truck Cargo Insurance is indicative of the growing awareness of these risks. It’s essential to understand how cargo insurance works.
What is Cargo Insurance
Cargo insurance protects the trucking company against the financial loss due to physical damage or loss of the cargo. This kind of insurance pays you the actual amount your cargo was insured for if a covered event occurs.
Cargo insurance is written in two different ways - either “All Perils” or “Named Perils”. There is a big difference in coverage forms. The first is written such that there is coverage for all risks of loss except exclusions listed in the policy. Some of the standard exclusions are inherent nature of the goods, insufficient or inadequate packing, ordinary wear and tear, consequential loss or loss of market. Named perils on the other hand is written to cover you for specific named perils and everything else is excluded.
The Benefits of Cargo Insurance
Cargo insurance introduces notable benefits for businesses.
1. Protects Your Cash Flow
Damages or loss of goods during freight movement can affect your cash flow significantly. Without insurance, you’ll probably need to pump in unbudgeted funds into replacing the lost or damaged items. Such disruptions in the cash flow can affect profitability and your financial stability. Cargo insurance covers you against such disruptions.
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2. Peace of Mind
There’s nothing more disturbing than having goods in transit without insurance coverage. You only have hope that the goods will reach their destination in good condition. The uneasiness that comes with such a scenario is unhealthy. The good thing about cargo insurance coverage is that you have the peace of mind that all is in control. You also have the assurance that you won’t suffer any losses regardless of what happens.
Cargo Insurance is the Defensive Game Plan
Goods in transit are susceptible to limitless risks. Unfortunately, when such risks occur, the financial burden can cause negative impacts on your business and derail your ability to deliver. However, cargo insurance is a solution that any business with a constant flow of goods on freight should consider. Your business will have a stable cash flow; you’ll enjoy peace of mind, manage to satisfy your customers, and also have an efficient claims mechanism.
Truck Physical Damage Insurance
Truck physical damage insurance provides protection for your truck and trailer as well as equipment contained within. There are two basic types of truck physical damage insurance. It is provided on a specified peril basis or a comprehensive and collision basis. A named peril policy is written for specific exposures and everything else is not covered. Comprehensive and collision coverage is synonymous with an all-peril policy where all perils are covered, and certain specified exclusions are named.
Choosing the value of the tractor and trailer is a tricky subject. You can insure each piece of equipment for a specified amount or you can insure the equipment for actual cash value. It is important for your agent to inform you how the insurance company handles this valuation. If the insurance company uses an actual cash value method in determining the loss amount, they will use the lower of the cost to repair or replace at the current market value.
Towing and storage after a covered event can amount to substantial costs. It is important that a consideration for this coverage is included in the truck physical damage policy. Other types of truck physical damage coverage can include trailer interchange or non-owned trailer coverage. This type of coverage protects the company for loss to equipment that is in your care, custody or control - a normal exclusion in a physical damage policy.
Deductibles are normally set at 1,000 per claim but higher deductible limits can reduce the premium.
When equipment is down because of an accident, it becomes very expensive for the trucking company. Revenue is lost and will not return until the equipment is placed back in use. There is coverage for business interruption that provides coverage for this exposure. Not many insurance companies like to provide this coverage to trucking companies. There are however some who will and consideration should be given to this exposure.
