Protect Your Trucking Business With Insurance
Most business owners know that having the right coverage is essential to protecting your company from potential losses and lawsuits. With a trucking company, it is no different! But did you know that there are several different types of insurance policies specifically designed to not only protect truckers but protect your trucking equipment, property, and cargo?
As a new trucking company, knowing all your options for insurance can be overwhelming. On top of knowing your options, the FMCSA requires all trucking companies to carry specific insurance policies before they can legally operate.
We have compiled a list below to ensure you know about the available insurance coverages you may need! So let’s take a closer look at the various types of insurance for trucking companies and how they can help cover your business from potential damages or losses.
General Liability Insurance
General liability insurance is essential to any business’s risk management plan. These policies cover damages from third-party bodily injuries or property damage caused by your business activities. This coverage also applies if someone sues your trucking business for negligence or damages resulting from services provided. When selecting general liability insurance, make sure it covers all aspects of your business operations, including cargo coverage in case of theft or damage while in transit.
Commercial Auto Insurance
Like personal auto insurance, commercial auto insurance provides financial protection for vehicles used within the scope of your business activities. This coverage includes cars, trucks, vans, and other vehicles the trucking company owns. Commercial auto insurance covers physical damage to these vehicles and third-party claims arising from an accident involving one of the company’s vehicles.
This vital insurance offers coverage in two main areas: property damage and bodily injury. When covering property damage, your insurance generally covers the costs to repair damages you caused to others’ property. However, the amount covered can vary depending on what you chose or qualified for when you signed up. With bodily injury coverage, the insurance primarily pays toward the costs related to injuries and/or deaths incurred while operating the insured vehicle. These include funeral costs, medical bills, or lost wages.
As you can see, commercial auto insurance is essential for trucking companies, as it can help cover significant medical expenses and repair costs that could otherwise put your company in a tricky financial situation.
In the trucking business, the cargo you haul is your lifeline! Cargo insurance helps protect shippers from potential losses due to events like theft or damage during transit. If or when a load is damaged or lost during shipping due to fire, collision, weather events, or other causes beyond the control of your trucking company, you will receive compensation for those losses under a cargo insurance policy. Also worth noting, these policies are typically underwritten as either an “all risks” basis covering all possible causes or an “open perils” basis covering only listed events such as natural disasters and accidents caused by human error or equipment failure. When choosing a policy, make sure to consider your options and weigh the benefits of each.
Business Interruption Insurance
Business interruption insurance provides exactly what it sounds like, financial protection for when your trucking company experiences a temporary interruption or suspension of operations. This interruption or suspension could be due to any qualified, insured event. Business interruption insurance can cover the loss of revenue, ongoing expenses, and other costs, such as relocation, if your business is forced to close down or relocate temporarily.
Umbrella insurance is probably a term you have heard before. This type of business insurance is designed to provide an extra layer of protection beyond the limits of your primary liability policies. This coverage kicks in when claims exceed the limits of your general liability, commercial auto, and other policies. Think of it as an additional safety net for your business, protecting you against losses due to major claims or lawsuits.
Commercial Property Insurance
Your commercial property is one of your most significant investments. A commercial property insurance policy can protect your physical assets, such as your buildings, inventory, equipment, and other tangible property owned by your trucking company. This coverage provides financial protection in the event of damage to or destruction of these items due to an accident or natural disaster.
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential type of business insurance for all business owners with a workforce. Even in the trucking industry, this coverage is vital! Also known as workers comp, this insurance covers medical expenses and lost wages due to workplace accidents. This coverage also applies if an employee suffers an illness or injury due to their work activities. In most states, workers’ compensation insurance is required for businesses with employees.
Cyber Liability Insurance
More of an oddball, new to the industry type insurance, we have cyber liability insurance. As the trucking industry increasingly relies on technology, cyber liability insurance can provide needed coverage against the financial losses associated with data breaches and other cybersecurity risks. These policies will help cover costs such as credit monitoring services, legal fees, and public relations costs associated with a breach.
Cyber liability insurance can also provide protection from losses due to computer viruses, system failures, hackers, and other cyber-related security threats. As more industries start making the shift to automating processes and integrating tech, these policies will become more vital each day.
No matter what size of trucking company you operate, having the right insurance policies is essential to protecting you and your customers against unexpected losses and liabilities associated with transporting goods. From general liability coverage to cargo policies and more, there are several different types of insurance designed specifically to protect truckers – each providing its own unique level of protection against potential risks and liabilities associated with running a successful trucking company.
To ensure that you have the most comprehensive protection that fits your particular situation, we encourage you to contact an experienced professional specializing in insuring trucking companies and get set up for a successful and safe future!
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