The day you drove off the lot with your new rig, you may not have been thinking about whether you had the right coverage or what coverage will you need to transport cargo. The reason you may not have thought about the latter on the day you drove off the lot is because as a business professional you did your research and found the right coverage months before your purchase. If so, or if not, here are some questions you will need to answer to determine if you have the right coverage:
- Is the insurance company reputable?
- Does the company have 800 numbers and can be reach 24 hours a day and 7 days a week?
- Does the company assisted with collections of monies owned by others when the accident is determine to be the other driver’s fault?
- Are your truck liability, physical damage, and coverage insurance covered under one policy?
When shopping for an insurance company to meet your commercial truck insurance needs you need a company that is financial stable and has a thorough understanding of the trucking industry.
It is essential that the company have experience handling truck claims and providing timely response to the owner operator in the event there is an accident or incident.
The latter is very important in the selection of the commercial truck insurance company because if the company does not understand the business of trucking you could potential loss a lot of revenue. You will need a company that provides service when you are working and that could be any time and any day.
As a matter of a fact, commercial trucking insurance should protect the driver from several different scenarios to include but is not limited to the following:
- From the loss of the cargo that the trucker is transporting
- Coverage for non-dispatched items such as, truck repairs and truck wash
- Physical damage to the cab
- From injuring others due to an accident
The coverage that a commercial driver will need for the cargo is called motor truck cargo insurance. Motor truck cargo insurance covers both lost or damage cargo that the driver is transporting. The limits for this coverage are $10,000 to $100,000.
The coverage that is needed for non-dispatched items such as, truck repairs and truck wash is called non-trucking liability insurance. Non-trucking liability insurance or bobtailing coverage covers the driver when he or she is not dispatched to a load or transporting cargo. Once the driver has received a load the truck is covered under the primary liability policy.
The coverage that is needed for physical damage to the cab is called physical damage insurance coverage. Physical damage covers against damage to the truck due to:
The premium of this coverage is based on what the owner wants covered and the equipment that the owner is covering. Often this coverage is required by the lienholder of the commercial vehicle.
The coverage that is needed to cover the driver in an accident if others are injured is called primary truck liability insurance. Primary liability insurance is mandated by state and federal regulations, and the coverage is required to operate a commercial vehicle. The coverage can range from $35,000 to $1,000,000 depending on the driving records, region, and years of operation.
There are several other coverages that a commercial driver can purchase, so it is essential to ascertain your needs before contacting a carrier.
By James Clapton