Types of Coverage Every Commercial Truck Owner Should Consider

Commercial truck insurance serves as a crucial form of coverage, protecting significant expenses if any of your trucks are involved in an accident. Unlike personal auto insurance, which is essential for those driving personal trucks or cars, commercial trucking insurance is specifically crafted for scenarios involving transporting goods, animals, customers, or materials. If you use your vehicle for professional and personal purposes, opting for a commercial insurance truck policy becomes imperative to fill the gaps left by personal auto insurance.

However, this distinction is less pertinent to larger commercial trucking companies. Typically, these companies initiate their trucking insurance policies with primary liability coverage and then expand their protection with additional safeguards. Primary liability coverage is a mandatory component for obtaining a trucking license, designed to protect property and individuals from the damage caused by your trucks. Furthermore, other types of company trucking insurance merit careful consideration.

Most Common Coverage Types (In No Particular Order)

  1. General LiabilityState-mandated coverage for drivers causing property or bodily damage, extending to actions on others’ premises and errors in load delivery.
  2. Motor Truck Cargo – Protects against cargo loss or damage on commercial trucks, with premiums varying based on freight type.
  3. Uninsured/Underinsured Motorists – Safeguards against situations where another person lacks necessary liability insurance.
  4. Primary Auto Liability – Federal regulations mandate commercial auto insurance for all trucks, providing protective coverage in accidents causing injuries to third parties.
  5. Physical Damage – Covers commercial truck repairs from incidents like vandalism, collision, theft, or natural disasters, with premiums based on equipment costs.
  6. Medical Payment – Covers medical bills for you or a passenger while driving or riding in the truck, with state-dependent variations in coverage.
  7. Trailer Interchange – Functions as Physical Damage insurance for non-owned trailers under a trailer interchange agreement, safeguarding against collision, fire, theft, explosion, or vandalism.
  8. Bobtail – Also known as non-trucking liability, it applies when a driver uses the truck for personal reasons or is off dispatch but does not cover trailer use or business driving.
  9. Reefer Breakdown Coverage – For refrigerated trucks, covers expenses related to refrigeration breakdowns, lost cargo, and product damage from collisions, with exclusions for certain products.
  10. Rental Reimbursement – Provides financial aid for renting a replacement truck during repairs.

What’s Right for You?

Acknowledge the importance of a comprehensive trucking insurance policy. Get help from a proficient team that is committed to working closely with you to develop a tailored insurance plan that addresses the distinct requirements of your trucking company. No two businesses are alike, so no two policies are alike. By meticulously assessing your liability exposures, find economical solutions to protect your business against third-party claims and ensure adherence to all legal obligations for liability coverage. 

The Daniel & Henry Company is a U.S. Top 100 Independent Insurance Agency headquartered in the Greater St. Louis area, with offices in Chicago, Cape Girardeau, and Kansas City. Their mission is to provide commercial trucking clients with the highest quality risk management programs, coupled with the very best service in the industry.