One of the major reasons why getting your trucks insured is financial protection. When a truck travels for thousands of miles, anything could happen to the truck, the driver and to its cargo. But, when you sign up for insurance, all these will be protected not just from accidents but from vandalism as well. While getting into an accident entails significant financial impact, this can be offset if your trucks have the right truckers insurance coverage. Some of the most common insurance coverages include the following:
Primary Auto Liability
Keep in mind that when an accident occurs, any damage caused by your truck will be covered by primary liability insurance. This type of truckers insurance coverage is required by federal regulations. A primary auto liability insurance will provide your company protection in the event when a third party is accidentally injured. It will also pay for the damaged public property caused by your truck.
General Liability
General liability insurance provides protection if any of your drivers cause accidental customer injury or property damage due to a crash. It will also include coverage for a driver’s action who happens to operate on another individual’s premises such as loading docks and truck stops. General liability also covers load delivery mistakes and most third-party accidents and injuries.
Motor Truck Cargo
This type of insurance basically protects the driver for his responsibility in case of a lost freight or damaged cargo. It protects the commodity or freight being hauled in the truck until the shipment is over. The cost of motor truck cargo insurance will depend on several factors such as the number of vehicles, the type of trucking operation and the type of cargo that the truck transports in the event of an accident.
Bobtail
This type of insurance covers non-trucking liability. For example, the truck driver uses the truck for personal purposes or when he is off dispatch. When a certain circumstance is not covered by the primary liability coverage, this bobtail insurance will cover. However, bobtail insurance will not cover any damage caused by truck drivers who are pulling a trailer or when they’re using the truck to gain extra income.
Physical Damage
Physical Damage is a term used to refer to an insurance coverage that mainly protects your truck. Physical damage insurance covers commercial truck repairs when its damage is caused by a natural disaster, vandalism, theft or collision. But, if the damage is beyond repair, physical damage insurance will replace it in which the premiums will be determined according to the cost of the truck and its equipment.
Rental Reimbursement
Rental reimbursement coverage will help you pay for the rental fee of a truck in case yours is still under repair. However, this type of insurance does not apply if your truck only needs a routine maintenance check or if you will be using the truck for personal reasons. This kind of coverage usually has a maximum number of days limit. For example, if the rental reimbursement only pays $30 a day for 30 days, then your trucking company will need to shoulder the rental fee that exceeds this limit.
Now that you have these options, it is up to you to choose which insurance company to purchase it. It is true that the costs of insurance coverage can be expensive, but rest assured that it can do wonders to protect your company from financial devastation.
