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Commercial Truck Insurance: Coverage and Rates

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Individually owned trucks or corporate vehicles that are used on the roads and highways of the United States are required to carry commercial truck insurance if they are used for hauling cargo for reasons of commerce. This type of policy is perfect for dump trucks, car haulers, logging trucks, fleets of small vans, refrigerated trucks, and flat bed semi-trucks.

There are commercial truck policies for small companies and even single trucks, as well as larger policies available to provide coverage for large fleets of vehicles that might even include subcontracted commercial vehicles. Sometimes commercial truck insurance is called long-haul truck insurance.

This type of insurance isn’t like personal or recreational vehicle insurance. Commercial truck insurance offers different types of coverage that includes pollution liability, and even options to cover specific regional regulations for business vehicles. Some policies will let the owners base the policy on mileage or gross business revenues. Although this method means you pay more when business is better.

Covering the Cargo

Instead of covering the vehicles, motor truck cargo insurance offers protection to the truck owners if they loose or damage the freight they carry. This type of insurance is limited to a maximum load value per vehicle. The freight can be appraised before shipment in order to assess the specific cost of replacement value so that the trucking company is fully protected from liability.

There are options to insure the freight even if it’s not on the truck, for instance in a warehouse or terminal. If something happens and the freight can’t be delivered there is also an option that will help pay for storage. This option is called Warehouseman’s legal liability.

Types of Commercial Truck Insurance

Commercial Truck Insurance: Coverage and RatesThere are statistics indicating that big trucks are involved in accidents where someone is killed or injured every sixteen minutes in the United States. Long-haul semi trucks have a bigger chance of becoming involved in multi-vehicle accidents that are often fatal. Having the right commercial trucking insurance is imperative to protecting your business.

Commercial truck insurance is often called semi-truck insurance. There are several types of coverage including:

  • Primary Liability Insurance – is required by law in order to drive any type of motor vehicle on the roads. This type of commercial truck insurance covers those who are injured or their property damage because of an accident with the truck where the driver is at fault. Federal law requires $750,000 minimum coverage for each truck driver on the road. If the truck driver is at fault in an accident the policy would cover the amount up to the limit, then the truck driver or company would be liable for additional amounts. Often truck drivers and companies will choose to carry primary liability insurance in an amount that is higher than the minimum limits required.
  • General Liability Insurance – is the part of the policy that would cover incidents that occur when you are not driving, including while stopped at a rest area, when loading or unloading the truck, theft or vandalism any time the commercial vehicle is parked. The specifics of general liability insurance coverage can fluctuate between different insurance providers. Make sure you don’t make assumptions and know exactly what your policy covers.
  • Motor Truck Cargo Insurance – as discussed above, this type of coverage protect the actual cargo or freight that is being transported in the commercial truck. While not required by law, your clients may demand that you carry this insurance and that it be at a specific limit before they contract for your services.
  • Non-Trucking Liability Insurance – is a form of commercial truck insurance that is sometimes referred to as bobtail or deadhead insurance. This coverage specifically protects your truck while it is stored or parked and empty of a load when you aren’t working.

There are also other forms of commercial truck insurance including a type specifically used by independent truck owners that operate their own vehicles. Known as Occupational and Accidental Injury Insurance, this part of the policy serves as a type of workman’s compensation for the driver/owner, paying for medical and living expenses if they are hurt on the job.

Insurance carriers have the right to request specific driver requirements in order for the insurance coverage to be valid. Besides a federal requirement that all drivers for vehicles over a certain size have a CDL or Commercial Driver’s License, the company can impose additional conditions that may include:

  • Higher age limits
  • Specified years of experience driving a truck
  • Limiting the number of acceptable moving violations, at fault accidents, or major violations over a specified number of years

Summary

The many facets of commercial truck insurance covers liability for personal injuries and property damages, it covers the loss or damage of the freight you carry, and it covers the truck whether it is carrying freight, parked at a terminal, or in your driveway.


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