The trucking industry faces unique risks. Whether you're an owner-operator or managing a fleet, the right insurance coverage is crucial. The difference between financial security and a major setback often lies in having the right policy in place.
This guide will help trucking professionals navigate the essential types of commercial truck insurance coverage, clarifying each one’s role in protecting your business from the unexpected. At Joe Morten & Son, Inc., we specialize in providing tailored solutions to meet the unique needs of the trucking industry. Read on to discover the coverage that’s right for your business.
Primary Coverages for Commercial Trucking
These core coverages form the foundation of a trucking insurance policy.
Commercial Trucking Liability Insurance
Commercial Auto Liability insurance covers bodily injury and property damage if the truck driver is at fault in an accident. This essential coverage is legally required and helps shield your business from financial losses resulting from accidents. Whether you're a driver or fleet manager, it’s the foundation of any insurance policy.
Physical Damage Insurance
Physical damage insurance protects your truck against damage from collisions, theft, or weather-related events. This coverage ensures you’re not left financially vulnerable if something happens to your vehicle, whether on the road or at rest. If you rely on your truck for daily operations, physical damage coverage is a must.
Cargo Insurance and Its Importance
Cargo coverage protects the goods being transported.
Cargo Insurance
Covers freight against theft, damage, or loss during transit. If you’re hauling valuable or sensitive goods, cargo insurance provides peace of mind. From electronics to hazardous materials, this coverage ensures that your freight is protected in case of accidents or other unforeseen circumstances.
Common Exclusions
Certain types of cargo may require specialized policies. For high-risk cargo or specialized freight (e.g., perishable items), it’s crucial to have customized coverage. Our team at Joe Morten & Son, Inc. can help you choose the right option for your specific needs.
We’ve found that more than any other type of trucking insurance, cargo coverage varies widely among insurance carriers and is often notable for what is not covered.
That is why we offer Broad Form Cargo insurance from Great West Casualty Company — so that we can cover many losses that other insurers exclude.
OUR CARGO COVERAGE INCLUDES PAYMENTS FOR:
- Unrecoverable freight charges after a loss
- Loss-recovery expenses in addition to the limit
- Clean-up and pollution-removal expenses up to $10,000 in addition to the limit
NONE OF THE FOLLOWING ARE EXCLUDED FROM OUR CARGO INSURANCE:
- Alcohol products
- Cargo in transit for more than 72 hours
- Consumer electronics
- Marring, scratching, packing, and rough handling, unless shipper error
- Wet loads
- Mysterious disappearance or pilferage, including from an employee when the Infidelity or Dishonesty extension is added
- Involuntary parting with the cargo by fraud or trick
- Refrigeration breakdown, failure to fuel, or maintenance of refrigeration equipment
- Spoilage
Additional Coverages for Comprehensive Protection
Depending on your business structure, you may need additional coverages for complete protection.
General Liability Insurance
General Liability covers third-party injuries or property damage not related to your trucking operations. This is essential for trucking businesses involved in activities outside of just driving—like visitors injured while on your premises. It ensures your business is protected against non-driving-related claims.
Workers Compensation Insurance
Workers Compensation protects employees in case of work-related injuries. If you have drivers or other employees, workers compensation is crucial for protecting them in the event of an injury, helping to ensure their medical expenses and lost wages are covered.
Excess Liability Coverage
Excess Liability provides additional protection beyond the limits of your standard policy. For businesses handling high-value goods or those with a lot of assets, excess liability coverage offers extra protection, ensuring you're not underinsured in case of catastrophic events.
Specialized Coverages for Different Trucking Operations
Depending on the size and structure of your trucking operation, specialized coverage options may be necessary.
Owner-Operator Insurance
Owner-Operator Insurance offers tailored coverage for independent truckers who lease or own their vehicles. Owner-operators face unique challenges and risks. Our customized owner-operator insurance solutions ensure you’re covered for everything from vehicle damage to liability claims.
Alternative Risk Programs
If you're managing a fleet, alternative risk programs offer flexible and cost-effective solutions to meet your specific business needs through risk financing. Risk financing is finding the right balance between protecting your trucking company from the financial risk of an accident and the cost of your insurance.
Safety & Risk Control Programs
These programs are designed to reduce incidents and improve operational safety. At Joe Morten & Son, Inc., our safety and risk control programs assist motor carriers with resources and materials to keep your drivers safe and compliant. Safety and compliance can lead to lower premiums.
Final Thoughts
Understanding the different types of commercial truck insurance ensures your business is protected from financial and legal risks. Whether you're a driver or managing a fleet, comprehensive coverage is essential to safeguard your livelihood. Get your free quote today.
This material is intended to be a broad overview of the subject matter and is provided for informational purposes only. Joe Morten & Son, Inc. does not provide legal advice to its insureds or other parties, nor does it advise insureds or other parties on employment-related issues, therefore the subject matter is not intended to serve as legal or employment advice for any issue(s) that may arise in the operations of its insureds or other parties. Legal advice should always be sought from legal counsel. Joe Morten & Son, Inc. shall have neither liability nor responsibility to any person or entity with respect to any loss, action, or inaction alleged to be caused directly or indirectly as a result of the information contained herein. Reprinted with permission from Great West Casualty Company.