It is essential to understand that coverage is one of the most important and prominent industries that drive financial institutions and worldwide economy. It is the leverage that you can make based on potential problems that could happen so that you can get premium in case of an issue.
At the same time, insurance is one of the most substantial fixed expenses that trucking companies and truckers are facing nowadays. It is one area that all companies and individuals must revisit and consider on an annual basis due to regulations.
We can consider numerous factors when it comes to truck insurance such as the age of the driver, driving records, commodities hauled, and period of equipment, loss history, vehicle location, radius, years in business and many more factors that will help you create a premium.
Different Types of Truck Insurance Coverages That You Can Choose
- Physical Damage – This particular type of insurance coverage is for both trailer and truck. Have in mind that premium tends to be based on the value of equipment that you own, and it is usually not the entire value but a percentage. It is essential to understand that you are not required by law to get this coverage, unless you finance it through lien holder, in which case you will need to have it. You should insure your vehicle based on its real value, which is why you should interview at least a few insurance companies so that you can get the best value possible.
- Primary Auto Liability – This particular insurance is mandatory based on federal Therefore, every single carrier must contain this specific insurance even if you own a leased unit. You do not have to worry because liability insurance will protect you when a third party is injured in an accident. Most owner operations should ask when leasing a truck on who is going to pay for it, the driver from weekly settlements or company altogether.
To learn more on vehicle insurance in overall, you should click here.
- General Liability – If you wish to protect your business from bodily injury or property damage that could happen, when you are driving a truck, you should take this particular coverage. The typical examples of this would include slip and fall exposure of your business, contractual vulnerabilities and ad-related exposures, which could be outside of trucking and driving.
- Non-Owned Trailer Liability – This particular coverage will protect your trailer that you decided to pull for a third party.
- Non-Owned Trailer Liability – Similar to the one we have mentioned above, this particular insurance will protect the trailer you decide to pull for the third
- Trailer-Interchange Liability – You do not have to worry because this liability will protect a trailer that you decided to pull when you have interchange agreement. This critical coverage will help you wish steamship line, for instance.
- Terminal Coverage – This particular coverage will protect freight, which is located in specific terminals during the time of loss. In usual cases, you will have time limitation when you decide to obtain this particular coverage. For instance, three days, or 72 hours are maximum per one specific load. In case that goods are stored longer than the final time, the best thing that you can do is to find Warehouse Legal policy, but it is important to thoroughly read it is that you can get the best offer possible. The amount of coverage will depend on the value of goods that you wish to store or dock. Check this link: https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/Financial-Responsibility-Study.pdf to learn more on this particular type of coverage.
- Cargo Insurance – It will cover your loss and damage to freight that tends to happen during the transit. Have in mind that this particular coverage can have numerous exclusions such as maximum theft limitations, unattended vehicle as well as other target commodities such as electronics, liquor, and It is vital to read the policy thoroughly; you will get so that you can get appropriate coverage based on your particular requirements.
- Warehouse Legal – We have mentioned this particular policy before, and it will protect your stored goods at some specific location in case of loss. For instance, it relates to sprinkler damage, fire, and The amount you will have to pay for it depends on the total amount of goods that you decided to store.