What You Need to Know About Purchasing an Insurance Policy for Your Trucking Company
Updated: Mar 16
Insurance might be one of the most important factors of starting a business. It's one of the largest fixed expenses that a trucking company will face. There are a variety of different factors that impact insurance costs, such as age of equipment, commodities, hauls, radius, vehicle location, loss history, and years in business. Trucking insurance is a summary of basic coverage for the truck and transportation industry.
In order for you to purchase the best insurance policy for your company, here are some of the common coverage's you want to make sure your insurance policy has:
General Liability Coverage
This insurance protects the business against any property damage or bodily injury that might occur without the presence of a truck. It covers the risk to your business outside of operating the truck itself. This policy will keep your company afloat in case of major accidents like delivering a load to the wrong place, a client slipping and falling in your office, advertising related exposures, and contractual exposures you might get involved in. You must already have in place a primary liability policy in order to add general liability coverage to your insurance policy.
This insurance pays for an accident when the driver/trucker is not under dispatch
If you are required to have insurance coverage for when your truck is operating without a trailer, this is the insurance you want. Bobtail insurance pays for the damages or injuries caused while the trailer is detailed from your truck, whether or not you are dispatched on a job.
You will want this to cover the damages/losses to freight that is in transit. This covers all damage to freight from any external cause during shipping. This policy pays regardless of which carrier is ultimately responsible for the loss or damage. This covers damages due to inappropriate packing, infestation, cargo abandonment, customs rejection, employee's dishonesty, and more.
Physical Damage Coverage
This is coverage for your truck and trailer when damages result from an accident in which you are not liable. Your premium is based on the value of your equipment. This covers damages to your truck caused by a collision, overturn, theft, or natural disaster, even if you experience a total loss.
Non-owned or Trailer interchange
Physical damage for non-owned trailers is not inherently included in your liability policy. Trailer Interchange is the most common addition you can make to your policy. This extends to liabilities an insured may incur for damages to a trailer while it is in possession. This requires a written agreement. You must purchase liability insurance to be eligible for Trailer Interchange Insurance and there must be at least one trailer, owned or not owned, listed for each tractor and/or pickup. Non-Owned Trailer Physical Damage coverage extends to a covered auto and any non-owned trailer while attached to the covered/scheduled power unit. It usually gives a limit of maximum physical damage coverage amount for the non-owned trailer. This requires no written agreement!
Porter Billing Services partners with insurance companies and can get you the best quote for your business. You can't run your trucking company without having an insurance policy and we can help you get the right one before you haul your first load. There are only a couple more steps before you're ready to get on the road, so don't stop now. Call Porter today at 205.397.0934 and learn how they can help you with factoring!