There are almost four million commercial truck drivers on the road today in the United States. Given the inherent risks associated with trucking, obtaining the appropriate trucking liability insurance, specifically general liability insurance for truckers, is crucial. This type of insurance, sometimes referred to as truckers liability, is mandated by some states for truck drivers to operate legally.

What is General Liability Insurance for Truckers?

General liability coverage, or commercial general liability insurance for truckers, is often referred to as business liability insurance. This kind of policy safeguards truckers from a wide array of claims. Typically, a standard general liability insurance for a trucking company will include coverage for the following:

Bodily injury and property damage
Products completed operations
Delivery of products
Personal and advertising injury
Liability medical payments
Damage to premises that you rent

Personal or advertising injury that is not physical in nature or is the result of negligence on your end is covered by injury to a person.

Product operations provide coverage for damages that may happen during or when the delivery of products completed operations.

For liability medical payments, this covers physical injuries to people not on your premises but suffered injuries while inside your motor truck property.

What Kind of Coverage Does My Trucking Business Need?

With over a billion dollars of freight moving every day, truckers and the cargo they carry comes with all kinds of associated risks. Most trucking companies make sure they carry sufficient levels of insurance in these areas:

Auto/Truck
Auto/Truck Physical Damage
Cargo Coverage
Trucking General
Cyber
Professional

General Liability Insurance vs. Professional Liability Coverage

The main difference between general liability insurance and professional liability insurance deals with the types of risks they cover.

General trucking liability insurance, or general liability for truckers, deals with physical risks like damage to premises, medical payments, property damage, and completed operations. The latter deals with more abstract risks like errors & omissions in the services you provide, intellectual property, malpractice, and more.

How Much Does Truck Liability Insurance cost?

There are a variety of factors that go into generating a quote for your company’s trucking general liability insurance coverage. Insurance companies most often look at a few common elements of your business:

Your company’s years in business
Annual Revenue
The kind of insurance you want/need, including what level deductible you choose
Your company’s overall claims history

Since companies provide coverage at varying levels, there is no one-size-fits-all price. For example, most trucking companies will spend between $450 and $1000 for a million-dollar policy. Since this kind of policy is part of your costs of doing business, you can typically write-off this expense on your company’s taxes. Check with your tax professional to make sure.

What If My Company Doesn’t Carry Liability Truck Insurance?

While you aren’t breaking any laws or violating any rules by not carrying general motor truck insurance, you are putting your company at risk. If a client were to slip and fall at your facility, you may be on the hook for all bodily injury and medical payments.

Keep in mind that general liability only pays for damages to a third party, which is typically the person who has a claim against you. That means this kind of policy won’t cover damage to your trucks,

Frequently Asked Questions

What is general liability insurance and how does it work in California?

General liability insurance is a type of business insurance that protects businesses from a variety of common risks. In California, this type of insurance covers legal expenses such as attorney fees and settlement costs in the event a third party files a lawsuit against your business for bodily injury, property damage, or personal and advertising injuries. It’s an essential way to safeguard your business against unforeseen expenses.

How can general liability insurance protect my employees?

While general liability insurance primarily offers protection against third-party claims, it can indirectly benefit your employees too. By handling costs related to lawsuits and claims, it ensures the financial stability of your business, which in turn secures the careers of your workers. It’s important to note that general liability insurance does not cover work-related injuries to employees. For such protection, you’ll need workers’ compensation insurance.

How do I determine the right coverages for my business in California?

The right coverages for your business depend on a variety of factors including your industry, location, and the specific needs of your business. It’s always a good idea to seek advice from insurance agents who can use their expertise and data to tailor policies to your requirements. At Strong Tie Insurance, for example, our knowledgeable agents work with trucking companies to understand their unique needs and guide them to suitable coverage options.

Are there any exclusions in general liability insurance?

Yes, general liability insurance policies do have exclusions. They typically don’t cover professional mistakes, intentional acts, or incidents involving company vehicles. Also, as mentioned earlier, employee injuries at work are not covered. Understanding these exclusions is crucial when considering general liability insurance. It’s recommended to discuss these exclusions with your insurance agent.

What role does location play in my general liability insurance in California?

Your business’s location in California can significantly impact your general liability insurance. Factors such as local regulations, the nature of the local industry, and even crime rates can affect the risks your business faces and the subsequent cost of your insurance. Moreover, if your business operates in multiple locations or if you’re a small business owner using personal property for work, these factors can complicate your insurance needs. It’s always best to provide your insurer with accurate information to ensure appropriate coverage.

Looking to extend your protection beyond Truckers General Liability Insurance? Discover the benefits of California’s Excess Liability Insurance in our latest blog post. Start exploring now to learn how you can fortify your trucking business even more!