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Commercial truck insurance is required for any trucking business or owner-operator providing trucking services. The Trucking Liability Insurance options available vary depending on different factors, some of them are the type of truck, the goods transported, the risks involved, and the number of years the driver has been driving.
What to pay attention to when choosing liability insurance?
You must obtain commercial liability insurance if you own a trucking company and want to build a solid network to work with brokers or directly with shippers.
- The amount of coverage required will be determined by the size and scope of the type of business and the products you transport.
- You would need a higher level of coverage to transport hazardous materials.
- Crossing borders means you’ll also need to purchase more coverage.
- Most trucking companies purchase Trucking Liability Insurance of $1 million in coverage
- The cost of the Trucking Liability Insurance will depend on the limits brokers ask to get contracted to work with them
- You can consult with an insurance agency to determine the appropriate amount of coverage for your business.
Factors that can affect the price of a trucking liability insurance
When a trucking company looks for insurance, insurance companies will evaluate many factors to offer a price.
- Driver’s age
- MVR (Violations, accidents)
- Experience (CDL and business)
- Credit score (applies only for certain insurances)
- State Coverages and its limits Commodities you carry Parking address
- Age of the vehicle
- Size of your fleet (With more trucks, it can get cheaper per truck)
- Losses in previous years
- Financial agreement APR.
- Type of truck (Gross weight)
Insurance companies set prices based on the risks your trucking company represents. Our recommendation as Insurance Agency is always to work underlie best practices and set Safety checkups periodically.
Coverages of Trucking Liability Insurance
Liability Insurance is a mandatory policy trucking businesses need to operate. All new trucking companies would need liability when they decide to be in the industry.
Having a Trucking Liability Insurance will cover any damage caused to third parties in an accident. For example, the policy will cover the damage if your truck crashes and injures a person. The damages to the traffic light or wall house also will be covered. If your truck gets damaged, this policy will not help you; the right insurance for this will be Physical Damage. If your transport cargo gets hurt, it will not help either; the right insurance policy would be Motor Truck cargo.