Trucking companies face unique risks that need to be covered by insurance. There are many reasons why trucking companies need insurance. Proper insurance can protect your business from financial hardship in an accident or claim. Let's take a look at five reasons why trucking companies need insurance.
1. To protect your business from liability
Trucking companies need insurance to protect their business from liability. If a trucker is involved in an accident, the trucking company can be liable for damages. This type of coverage can help to cover the cost of repairs, medical bills, and legal fees.
Some states require that trucking companies carry a certain amount of liability insurance. This coverage is typically expressed in terms of how much money the insurer will pay out if the trucking company is found liable for an accident. The minimum liability insurance that a trucking company must carry varies from state to state.
2. To protect your trucks and equipment
This type of coverage can help to cover the cost of repairs or replacement if your trucks or equipment are damaged in an accident. It can also help to cover the cost of theft or vandalism.
Equipment insurance is typically a separate policy from liability insurance. You must purchase two separate policies to cover your trucks and equipment.
Some trucking companies choose to self-insure their trucks and equipment. This means they set aside money each month to cover the cost of repairs or replacements if their trucks or equipment are damaged in an accident.
Self-insuring can be a good option for trucking companies with a good safety record and do not anticipate any major accidents or claims. However, self-insuring can be risky because you could have to pay out of pocket if there is a large accident or claim.
3. To protect your cargo
Cargo insurance can help to cover the cost of replacing or repairing damaged goods. It can also help to cover the cost of theft or vandalism.
Cargo insurance features a few different coverage options. You can choose to insure your cargo for its replacement value or its actual cash value.
Replacement value insurance will pay to replace your damaged goods with new goods of the same type and quality. Actual cash value insurance will reimburse you for the current market value of your damaged goods.
You can also insure your cargo per trip or an open policy. A per-trip policy will cover your cargo for a specific trip. An open policy will cover your cargo for an unlimited number of trips.
If you don't know where to start, an insurance company like Milepost Insurance which specializes in truck insurance can help you determine the best coverage for your needs.
4. To protect your drivers
Driver insurance can help cover medical bills and lost wages if your drivers are injured in an accident. It can also help to cover the cost of legal fees if your drivers are sued due to an accident.
Most trucking companies carry driver insurance as a commercial auto insurance policy. This coverage is typically expressed in how much the insurer will pay if one of your drivers is involved in an accident.
Some states require that trucking companies carry a certain amount of driver insurance. The minimum amount of driver insurance a trucking company must carry varies from state to state.
5. To comply with state and federal regulations
Trucking companies are subject to a variety of state and federal regulations. These regulations typically require trucking companies to carry certain types and amounts of insurance.
Failure to comply with these regulations can result in fines, penalties, and the loss of your operating authority. As such, it is expedient to ensure that you carry the required types and amounts of insurance.
An insurance agent can help you ensure that you comply with all state and federal regulations.
Trucking companies need insurance for a variety of reasons. The most important reason is to protect yourself, your drivers, and your cargo in the event of an accident. Insurance can also help you to comply with state and federal regulations. When you are thinking about starting a trucking company or already have a trucking company, be sure to speak with an insurance agent about your insurance needs.
No comments yet