Importance Of Commercial Trucking Insurance
Road transportation is the primary method of transport within a country. Commercial trucks are among the most popular vehicles used in road transportation to carry waste, raw materials and finished goods.
While commercial trucks are bigger in size than the average vehicle, they are quite vulnerable to accidents and damages. Every year, there are a number of reported cases of collisions and other types of accidents involving commercial trucks. As such, purchasing commercial trucking insurance is mandatory for companies and individual contractors.
Commercial trucking insurance offers companies and drivers sensible security by providing guaranteed coverage against losses or damages. Trucks are very expensive vehicles to purchase and this is especially true for specialized trucks. Therefore, it should not hard to understand that damages caused by even small accidents could cause the owner serious financial setbacks.
A commercial trucking insurance policy offers third party liability coverage every company and independent contractor needs. You are obligated to have the appropriate coverage that matches the ways in which your commercial vehicles are used. If this is not done you run the risk of facing penalties.
Before deciding on which insurance provider and policy to use for your commercial vehicle, in depth research is required to make the best possible decision for you or the company. To help with your research, below is a list of the types of commercial trucking insurance available to you:
General Liability Coverage
This type of insurance coverage is designed to provide third party coverage to protect the employees and vehicles of a commercial trucking company. General liability coverage is a broader variant of the primary liability insurance, which will be highlighted below. General liability is much more of a company oriented policy.
Primary Liability Coverage
Primary liability coverage is used to take care of any physical injury and damage caused by a particular accident. This insurance coverage represents vital coverage in the wide cross-section of commercial trucking insurance. In fact, the law mandates all truck drivers to have this type of coverage. In addition, if the vehicle of the insurance holder causes damage to individuals or another vehicle, the costs associated with this accident would also be covered under primary liability insurance.
Bobtail Liability Insurance
Independent drivers who do not have coverage under a company’s primary liability insurance can get coverage under bobtail liability insurance. This type of insurance coverage can enable the truck drivers to save a marginal amount as there would be no need for them to buy the entire policy.
Physical Damage Coverage
This type of coverage was specifically designed to cover damages caused to the insured’s property by the insured’s truck. In addition, this coverage provides compensation for losses like fires, theft and vandalism. This type of policy also covers any damage to the truck such as scratches, dents and collisions marks.
A cargo insurance policy provides coverage for independent haulers. It covers damages done to cargo that is not owned by the independent hauler. This policy is a bit complicated; however, it is a vital part of commercial trucking insurance. An insurance professional can help you to understand the details and importance of this coverage.
Independent Concerns Coverage
This kind of insurance coverage is not designed for commercial trucking companies. Independent concerns coverage is exclusively offered to provide coverage for independent truck drivers.
To successfully own and operate a commercial trucking business that uses motor carries and large trucks and involves hauling or trucking services, commercial trucking insurance will be an essential part of your business. Therefore, it is important to ensure you get the best commercial trucking insurance for you or your company.