Ultimate Guide To Trucking Umbrella Insurance

Admin May 8, 2018 Commercial Truck Insurance

In the United States of America, ensuring your truck is mandatory for you to use public roads. In some states, there are forms of insurance required for trucks to follow before they are allowed on the road. Without adequate insurance coverage, it leaves you and your business exposed and you risk facing heavy fines.

Beyond legal importance, staying insured covers your business from any financial loss in case of an accident. Primary liability coverage is well known to trucking industry businessmen but what they don’t know is that there are secondary liabilities which are not covered by your primary policy. This is where trucking umbrella insurance comes into play.

What is Trucking Umbrella Insurance?

Any lucrative business comes with challenges that need insurance coverage. If left uncovered, it may result in huge losses or court cases that may lead to the liquidation of your business. For many years, trucking business owners know it to be a lucrative business venture that comes with its price at times. Your primary insurance policy usually doesn’t cover some of these gaps unless requested. Trucking umbrella insurance or excess insurance covers all these loopholes thus increasing your liability limits.

No matter the safety training your driver may have gone through or the vehicle technology you might be using, accidents still happen. When this happens, the results can be anything from severe damage to your truck, property of others, or other vehicles and people involved in the accident. Sometimes bodily injuries occur and in the worst case scenario, realistically fatalities can happen.

Depending on your preparedness, this risk can have a huge impact on your business and your personal savings. You can take control of the risk of these happenings before they occur. This is the paramount reason why you should get trucking umbrella insurance coverage. In case of a lawsuit, your business is well protected.

It’s common knowledge that a loaded truck is exposed to many risks on our roads and the long distance they cover and weather conditions don’t help either. If you are a fleet owner, it’s important to have umbrella liability coverage to protect your finances. This is the best affordable way to seal any loopholes in your primary policy coverage. This is an assurance that even if your primary policy fails to cover part of the claim, your excess coverage will do.

It’s good to note that an umbrella trucking policy only pays after your initial primary coverage has been exhausted. If your coverage is one million dollars and the claim against you is 1.5 million dollars, your umbrella policy coverage will cover the excess five hundred thousand as your primary liability coverage takes care of the rest. It’s good to note your secondary coverage is only triggered after your primary cover has been exhausted.

Is Trucking Umbrella Insurance What I Need For My Company?

Most people always ask why get the umbrella coverage when chances of the huge loss occurring are very minimal? Though it’s true the chances are minimal, the fact is they do occur.  A survey held recently shows all cases claimed against excess liability insurance coverage, and the businesses sued to end up losing multi-millions of dollars. A single accident can leave you and your business emptied for life. It is therefore important to take caution as much as possible.

You don’t want to risk paying millions of dollars for something you can protect yourself from by having coverage with a simple trucking umbrella insurance policy. Today we have businesses that have been liquidated and their assets attached to court cases. You need to protect your business and assets today to get that assurance that your business is safe when an accident happens no matter who may be at fault.

Your primary policy will give you a good layer of protection, but a trucking umbrella policy gives you an extra layer of protection. In lawsuits, it acts as your lifesaver against any lawsuit that might cripple your business for good. This means that trucking umbrella coverage will work on its own for what primary coverage can’t do.  In the USA, you are not legally required to have a trucking umbrella policy for your truck but the amount it covers is pretty good.

This doesn’t make it a less important type of coverage in any way. Clients want assurance that their goods will be safely delivered and in case of any type of accident, they can be compensated. Having umbrella coverage for a trucking business is one way to give your client this assurance.

Umbrella Insurance Rates and Quotes

For the best rates, it’s always advisable to take several quotations from different carrier companies. Most carrier companies sell the coverage between one million dollars to fifty million dollars. The rates all differ with each state as the rates for the state of California differs with that of Illinois. An insurance agent also comes in handy when choosing the best insurance company for you.

Over the years, the rates for trucking insurance have increased dramatically. This is as a result of an increase in jury awards. Choose wisely when determining what carrier company will offer you the best rates after they have evaluated your various exposures. Most of them are starting at around two thousand five hundred dollars per year.

When discussing your trucking umbrella policy with your agent, ask about how the policy can be customized to suit the needs of your business. Many companies have this option for their customers. Make evaluations of your exposure on an annual basis will be calculated with your agent to know how much insurance you need to carry.

Don’t wait to learn the hard way when your business is liquidated through court cases. Cover your business and your savings by taking a trucking umbrella insurance policy today. Your business is valuable to you but a slight accident can take it away. Don’t be cheated by the sense of security because no major accident has happened yet. Every day your truck is on the road your exposure to huge losses is very serious and it shouldn’t be ignored.

Although there are some other liability insurance coverages that cater for higher risks, they are usually exhausted easily. For that reason, it is always important to have another layer of protection. This can easily be provided with an umbrella insurance policy for trucks, just to keep your business on the safe side.