Being in the trucking business is risky. Your truck and the freight are exposed to uncountable possibilities that can put the whole trucking operation on hiatus. Along with your investment (semi-truck), there are a million dollars of cargo on the move, and accidents or loss of freight can bring grave consequences to your trucking business. To secure your business from such a financial crisis, you need to add a protective layer for its smooth operation in the form of semi-truck insurance.
If you are starting a semi-trucking business then this endeavor is undoubtedly exciting as well as fretful. Furthermore, you are required to fulfill several requisites before getting your commercial vehicles on the road. One of the most vital requirements while purchasing a semi-truck and starting a trucking business is getting the right type of commercial truck insurance. This aspect puts even the experienced trucker or businesses in a tight spot. Because the process of choosing the right insurance coverage is utterly puzzling, especially for those who are new to this field.
Whether you are buying a new semi-truck or not happy with your existing insurance coverage. No matter what stage you are in the process, you have landed at the right place. As purchasing commercial truck insurance can be confusing, this post will guide you with all types of coverages you should get for your semi-truck for complete protection.
08 Types of semi-truck insurances that you need as a commercial trucker
From repairing the truck to paying for medical bills after an accident, the cost doesn’t come cheap. Semi-truck insurance with the right coverage limit protects you against all the potential risks both on and off the road. Now the question is what type of coverage you should opt for. Here are some major types of insurance that you should get for your semi-trucks.
1. General liability
General liability is also known as a public liability in the insurance industry. It basically covers the property damage and bodily injury done to a third party resulting from an accident. This coverage will pay for the medical bills and the legal expenses in case a person files a lawsuit after getting physically injured or suffering major property loss.
2. Primary liability
Primary liability is also called trucking liability insurance which is mandatory to carry as per state and federal law. Truckers who are using commercial vehicles for business activities need to carry primary liability unfailingly. This coverage pays for the property or physical damage done to other people in an incident. However, this insurance doesn’t cover your own truck.
3. Bobtail insurance
Driving a truck without a trailer is called bob-tailing, that is why this insurance is known as bobtail insurance. This coverage proves to be beneficial when your truck is operating without a trailer both on and off the road (while getting serviced). Semi-truck operators who occasionally drive the vehicle without dispatch need this coverage.
4. Motor truck cargo insurance
The cargo you haul is a vital aspect of your trucking business. You need to ensure the safety of the freight till the time it doesn’t reach its destination. To make that happen, you need to get motor truck cargo insurance to protect it from various likely risks such as theft, explosion, fire, vandalism, etc.
5. Non-trucking liability
Non-trucking liability coverage protects you against property damages or bodily injuries to a third party when you operate the truck for non-business activities. For instance, if your trucker causes an accident while using it for personal purposes, or returning back after dispatching the shipment then non-trucking liability pays for the repairing and medical costs of the third party.
6. Physical damage
Physical damage coverage is not mandatory by the law but it is recommended to carry for the benefit it offers to the truckers. This policy covers all sorts of damages and repairs of your own truck after an accident, theft, vandalism, fire, or natural disaster. There are two types of coverages that come under physical damage:
- Collision coverage: It pays for all the loss and expenses you incur when your truck collides with another vehicle or object.
- Comprehensive coverage: This pays for all the expenses that arise out of non-accidental reasons i.e. theft, fire, explosion, vandalism, etc.
7. Worker’s compensation
This coverage is also state-mandated that pays for the medical bills and lost money or property of your employees during working hours. Whether you are a motor carrier or owner operator you are required to get this insurance if you have workers. Depending on the state rule, damages that are covered under worker compensation include:
- Physical injuries after an accident.
- Work-related sickness after chemical exposure.
- Injuries while on-loading or offloading the cargo.
8. Additional coverages for semi-trucks
All the above insurances are the most common truck insurances for semi-trucks. The following are some of the additional coverages you can consider for your trucks for comprehensive protection:
- Hazmat truck insurance: This is a form of truck insurance designed for truckers who transport hazardous material.
- Umbrella insurance: It is a type of liability insurance that fills the gap of other insurances that don’t cover specific losses.
Livestock cargo insurance: This policy pays for the losses while transporting livestock from one point to another. Like accidental release, escape, death, or injury to the livestock.
To conclude
Out of all the above commercial truck insurance, the best fit for your semi-trucks depends on the type of your cargo you haul. For owner-operators, they will have to scan and pick all the vital coverages for their business. Truckers operating under a lease will have to examine their contracts to check which type of coverage they require.
The best thing for your semi-truck business is to contact a reliable insurance provider who can help you in this aspect. As there are a lot of options in commercial truck insurance, you might get confused or end up taking coverage that won’t be appropriate or beneficial for you. Always remember don’t just go by the cost of insurance, go by the type of coverage you actually need.
