Getting a Commercial Truck Insurance: What You Need To Know

What You Need to Know Before Getting a Commercial Truck Insurance

Strong Tie Insurance September 17, 2020 Commercial Truck Insurance

Finding the right commercial insurance for trucks is one of the most important things you have to prioritize if you’re in the trucking business. You will need the appropriate coverage that can protect your vehicles and your business in case of accidents.

Whether you do this on your own or you plan to enlist the help of an agent to compare the quotes you will get from insurance providers, you first need to arm yourself at least with the basic knowledge of how commercial truck insurance works.

This type of insurance consists of a group of insurance auto policies designed to cover trucking needs. The most basic coverage starts with primary liability and from there you can add additional coverage that should address your more specific needs.

If you want to have a trucking license, you will likely be required to have at least primary liability insurance, which protects your employees and property from damages that might befall your truck.

Why Do You Need Commercial Truck Insurance?

If you are the owner or operator of a trucking company, it’s best to expand your insurance coverage to include general liability. If you are a truck driver, you will need primary liability insurance so you can drive on your own authority.

In short, you should have primary liability if you need insurance to drive. You need general liability if you need to get your trucks on the road.

In the event of an accident, your primary insurance policy will cover at least the damages to another vehicle or another person. But if you want to get protected against potential lawsuits or claims against your business that are slanderous, libelous, or insinuates false advertising, then you must also sign for general liability.

The Federal Motor Carrier Safety Administration (FMCSA) requires certain trucking businesses to have general liability coverage.

Having no insurance can be fatal to your business. According to Trusted Choice, a group of independent insurance agents, one in three small businesses will close down because they don’t have insurance to cover the costs incurred by lawsuits or accidents.

Difference Between Commercial Truck Insurance and Commercial Auto Insurance

Commercial auto insurance is not adequate enough to cover the needs of the trucking business. Driving around in a van is vastly different than driving a truck, which involves hauling loads of materials or merchandise for long hours across state lines.

This is why the FMCSA requires owners to have certain insurance minimums before their trucks can get on the road.

Commercial Truck Insurance – What It Covers

These are the situations that are covered by a general liability commercial truck policy:

  • Bodily injury – In case another person is hurt in an accident that involves your truck, your insurance will cover the costs of medical help and potential lawsuits.

If someone slips and falls on your property, your insurance will pay for that too.

  • Damages to property and commodities – If your truck brings damages to another’s property, your insurance will shoulder the costs to have it fixed or replaced.

Costs and damages incurred if the driver delivers goods to the wrong address are also covered. If your driver ends up causing damage to property during delivery, the general liability policy will cover its costs as well.  

  • Claims that fall under libel, slander, and false claims – Your general liability also has your back in case your company gets sued for the following claims.

Commercial Truck Insurance: What It Does Not Cover?

As comprehensive as your commercial truck policy sounds like, there are still exceptions to its coverage. These are the following:

  • Certain types of vehicles – Limousines, buses, passenger vans, hearses, ice cream trucks, and cement trucks are not covered under this insurance.
  • Damage to your trucks – The insurance only covers damages to other trucks, not your own. You can insure your own trucks via physical damage coverage. This is not required by law, but it’s worth getting if your budget allows it.
  • Driver injuries – Just like the item above, the insurance only covers injuries to other people, not your driver’s. If you want protection for your driver’s injuries, you must sign up for a worker’s compensation insurance plan.
  • Replacement or loss of cargo for defective refrigeration – your insurance will not cover the loss of cargo that resulted from defects on your refrigerated truck. If your refrigerated truck or your cooling component breaks down, you will have to pay this on your own.
  • Loss of cargo worth more than the minimum coverage – this may want you to consider getting additional coverage since truck drivers haul cargos that are worth far more than the minimum amount required by the federal government.
  • Loss of livelihood after an accident – you have to sign up for business interruption insurance if you want to insure the downtime while waiting to get your business back up again.

Cost of Commercial Truck Insurance

The costs for cheap truck insurance will depend on several factors, but one thing is for sure: it’s going to cost you. A primary liability coverage premium is on the average of between $5000 to $7000 annually.

Naturally, costs will get higher when you have add-ons. Other factors that have a say in your insurance costs; the age of your driver (having younger drivers costs more), driving record, the mileage and condition of your vehicle, cargo type, state requirements, and the distance that your driver covers.

Choosing the Right Insurance Provider Makes a Huge Difference

You have to talk to an insurance provider that understands your needs and the trucking business in-depth, as well as one that offers competitive costs. Strong Tie Insurance understands the daily risks you face as a specialty vehicle operator. 

We have developed a reliable commercial trucking insurance program designed to meet your specific truck insurance needs while saving you substantial premium dollars.

From small trucking businesses to large logistics companies, we provide quality yet cheap commercial trucking insurance to a wide range of business customers nationwide.

Want to understand how these considerations translate in Texas? Get an in-depth look at the local insurance landscape in our latest blog post on Texas Commercial Truck Insurance. Visit our page to learn more before making your insurance decision!

Budgeting for your trucking business? Delve deeper with our analysis on the average monthly cost of Commercial Truck Insurance. Be prepared, stay informed, and optimize your investment.

Call us today to get a quote for comprehensive truck insurance for your business.