Commercial truck insurance coverage is a strategic business asset. In comparison with standard cars, trucks are used for commercial purposes. Thus, commercial truck insurance protects your business interests and the driver's livelihood. This post provides insights into commercial truck insurance.
What Is Commercial Truck Insurance?
Commercial truck insurance is a unique policy cover provided by insurers to trucking companies. Notably, there is no one-size-fits-all policy for commercial vehicles. Instead, commercial truck insurance acts as an umbrella of varying insurance types that protects from the common risks associated with commercial vehicle operations. Such insurance types include cargo, non-truck, bobtail, mechanical breakdown, general liability, and limited depreciation policies. The insurance covers both for-hire transport truckers who haul general freight and for-hire specialty truckers specializing in specific sectors like logging, gas, of garbage.
The cost of commercial truck insurance depends on the following factors:
- Contractual requirements
- Driving history
- Operating radius
- Type of cargo
- Type of vehicle
As a general rule, invest in more than the mandatory auto liability coverage. For instance, having bobtail insurance means your commercial truck has coverage for damages to the vehicle when it is not operating. This way, adequate coverage provides peace of mind.
What Is the Importance of Commercial Truck Insurance?
Protection From Unexpected Calamities
Typically, trucks cost a fortune to buy and repair. Yet, the transport industry is full of risks that can cause damages and losses. For instance, your vehicle may get involved in a crash or get swept by floods, or cargo may be stolen. In the event of accidents and incidents, you are likely to suffer a significant financial loss. Thus, it becomes crucial for any transportation company to have commercial insurance cover. This way, you have an assurance that the insurer would compensate you for losses and cater to the cost of repairs.
Protection From Liability Lawsuits
In most states, all commercial vehicles must be insured to operate within the state lines. Typically, the basic insurance is auto accident liability coverage. This type of policy helps to pay for damages in a truck accident you cause. Thus, the insurance caters to the cost of repairing the other party's vehicle or property. More so, the policy covers legal expenses should you get sued for injuries sustained by other drivers. Hence, commercial truck insurance helps you to comply with mandatory state laws.
Facilitates Interstate Operation
Commercial truck insurance helps you fulfill the requirements of operating across state borders. Ordinarily, trucks that operate across the state lines must have extra insurance coverage. This coverage varies depending on the type of cargo and the gross weight of the truck. Failure to have the appropriate insurance policy when operating truck transportation across state borders results in penalties. Thus, comprehensive commercial truck insurance supports your business needs to offer transportation services across states.
Commercial truck insurance is a legal and strategic necessity for trucking companies. Contact a commercial truck insurance service for more information.