The Amazing Benefits of Trucking Umbrella Insurance

Admin May 1, 2018 Commercial Truck Insurance

Umbrella insurance has all-around protection

In the trucking industry these days there are more problems than there used to be. Many of these are due to higher populations across the country in just about every major city. Federal and state regulations have also changed a few things within the trucking industry over the decades as well.

There is no way to place blame in any direction but everyone now has to pay for a few things that have affected the industry for the rest. Some of the changes are for the better, regardless, more insurance protection is necessary now more than ever.

Trucking umbrella insurance is one way to protect yourself in a variety of difficult situations. With changes affecting the way things are today, it pays to have more insurance than you think you will need. You can never be too careful, as a lack of insurance may actually distract you or your drivers from the task at hand. That distraction can end up being both physically and financially costly for you and your family.

Reasons why you should have trucking umbrella insurance

You may think that your trucking company has enough insurance. You may opt out of having to add another insurance premium to your list of expenses. That may not be a smart decision to make. Here are some reasons why it isn’t a good move:

  •      You are injured in an accident
  •      Your truck is badly damaged in an accident
  •      Your badly damage other vehicles on the road in an accident
  •      You badly damage property when you have an accident
  •      You cause serious physical damage to another person in an accident

You may think the current liability insurance is enough, but in most cases, it is not.

Trucking umbrella insurance is added protection

Since the world is not like it used to be and many injured people are using accidents to get rich quick it pays to have added protection. Your company and your family’s financial future depend on your business is completely covered.

One of the main reasons you should have trucking umbrella insurance is because people look to lawsuits to get more money than they normally would receive. Even if one party was at fault and it was truly an accident. Truckers and trucking companies are looked upon as cash cows or for having deep pockets.

This means that there is ambulance chasing lawyers out there as well who are looking to make a big payday for themselves and their clients. Normal liability insurance may not cover the amounts demanded in a lawsuit. Plus, basic insurance policies may have gaps in them, so being fully protected when lawsuits are filed is the best case scenario.

What is trucking umbrella insurance?

To put it simply, trucking umbrella insurance is added protection when your liability insurance only goes so far. This policy will extend your coverage, in some cases up to $50 million dollars.

This extension is important when juries or judges hand out large multi-million dollar settlements in traffic accident cases. It is also important as there are many other situations you encounter on the road where regular liability insurance does not address or protect you.

Trucking umbrella insurance fills the holes or gaps that are created by your regular and other insurance policies. It provides more financial protection and makes sure you have the more to cover the results of any lawsuits that are sent your way. Trucking umbrella insurance is not a separate one size fits all insurance policy. It does not replace other mandatory insurance policies required by federal or state law.

When does trucking umbrella insurance kick in?

This is not an automatic protection if your liability insurance already covers the damages set in an accident or other situation. The umbrella insurance only comes into action when the damages and other penalties exceed the coverage amounts set by your liability insurance.

This is extra protection, not replacement protection. You will still need to carry regular liability insurance on all your trucks and trailers. You will need to talk to your insurance agent to get all the details on when the extra coverage kicks in and protects you from lawsuits and other penalties.

Calculating your trucking umbrella insurance

As with any insurance policy, there are a number of factors involved when an insurance company calculates your premiums. These factors include but are not limited to the following:

  •      The State where your business is located
  •      If you have a DOT number or not
  •      Are you leased to a company or not
  •      How many trucks you operate and own
  •      How many drivers you employ

Of course, the total amount of the policy also weighs in on determining the rate of your premiums. You would need to speak to a reputable trucking insurance company to get all the specifics and factors involved in determining your premium rate.

Is the risk worth it?

Keep in mind that trucking umbrella insurance is not mandatory. It is solely your choice if you want to have the extra protection or not. If you think your risks do not warrant the extra protection, then plenty of other options are available. Since no one can predict the future, you may want to think twice about opting out of obtaining the extra protection for your company and drivers.

Some final thoughts

Insurance protection for all areas of your business that you are involved in is an intelligent move to make. There are just too many accident victims looking for a big payday that will last them the rest of their lives.

Now that you know what trucking umbrella insurance is and what it can do for you. It would be a wise move for you to bring your questions to your reputable trucking insurance agent. They can explain all details on trucking umbrella insurance.

They will also be able to give you a full list of factors involved in determining your rates. As well as provide you with all the specifics about your coverage. The risk is not worth taking the chance of not insuring your business properly.