Does your business own and operate commercial vehicles? From large semi trucks to smaller commercial vehicles, if your business depends on a vehicular fleet for its day-to-day operations, it’s essential that your vehicles are fully insured and protected.
Insurance isn’t just a sensible financial decision; in some states, it’s a legal necessity. From the law to the peace of mind that comes from knowing you’re covered, there are numerous reasons to make sure your trucking fleet is always insured.
Need some help making the decision to purchase trucking insurance? From reducing your risk to simplifying your business, we’ve listed five reasons to make sure you buy trucking insurance for your company below.
It’s a Legal Necessity
For most businesses, having good coverage insurance is a legal necessity. The United States Code of Federal Regulations has strict minimum insurance limits for business vehicles, which includes commercial trucks.
Under the regulations, trucks with a gross weight rating of more than 10,000 lbs are required to have at least $750,000 of insurance for bodily injury and property damage for commodities that are considered “non-hazardous.”
Vehicles with hazardous materials, excluding explosives, have a minimum limit of $1 million for bodily injury and property damage insurance. For explosives and hazardous materials in some tanks, the minimum limit is $5 million.
Even smaller trucks are subject to minimum insurance limitations, meaning you’ll need to buy commercial truck insurance even if your business doesn’t operate large trucks.
Financial Risk Reduction
Operating any type of business without adequate insurance is a risky financial decision, one that could have serious negative consequences.
Making sure your vehicles are covered by commercial truck insurance is an important part of running a responsible business. Not only does it protect your business financially; it’s also an effective way to protect other motorists from the financial cost of an accident.
While trucking accidents are fairly rare, they do occur. When your fleet is fully insured, road accidents and incidents that result in damage are far easier to manage, particularly from a financial perspective.
Your Customers Are Protected
Do you provide a delivery service to other customers? If your trucks frequently carry items that belong to other people, or items intended for sale to wholesalers or distributors, it’s important to protect not only your interests but theirs as well.
In an accident, it’s easy for a truck’s contents to become damaged, resulting in delays and lost opportunities for the clients and customers that depend on you. With the right insurance, you can protect not only your business but also the property of your transportation customers.
This not only makes it easier to manage the situation in the event of an accident that damages the contents of a truck; it also provides your customers with an extra level of confidence in your business, making it easier to market your services.
Growing Your Business is Easier
Buying a reliable policy for truck insurance not only makes it easier to run your business on a day to day basis but it also makes it easier to grow your business over time.
The earlier you invest in a trucking insurance policy for your fleet, the easier it becomes to add new vehicles over time. If you’ve been a loyal customer for months or years already, most insurance providers will welcome an expanded policy and offer you a competitive deal.
Keeping your commercial vehicles insured also adds a layer of financial predictability to your business that makes growth easier and faster. Since you’re protected, you can focus on growth without having to worry about unexpected fees, repair costs, or settlements.
It’s Surprisingly Flexible
A commercial trucking insurance policy can vary hugely in size and scope, from policies designed to offer primary liability coverage to general liability coverage, physical damage coverage, cargo and a wide range of other coverage options.
This makes it easy to choose a policy that not only meets your needs, but offers the exact level of coverage your business needs. Instead of being locked into a policy that doesn’t exactly meet your needs, you have a surprising level of flexibility to pick and choose.