Trucks remain the mode to carry the largest share of loads for less than 1,000 miles shipments in the US, transporting about 10.23 billion tons of freight in 2020.

Given how vital the trucking industry is for transporting goods, it’s no wonder they’re among the most significant assets to many industries.

If you own a retail business that uses trucks for deliveries or delivery services, it is important to ensure your company is fully protected from uninsured losses.

It’s regardless of how many trucks you have operating or how large your business is. Commercial truck insurance will safeguard your assets, so you only have to worry about scaling your business!

But first, let’s help you get armed with the knowledge about commercial truck insurance—why you need one and what your options are.

What is commercial truck insurance?

Many things can go wrong with running a retail business, and trucking accidents are one of them. They cause damage to other vehicles and property and injuries to the drivers and passengers of those vehicles involved in the accident.

Additionally, trucking accidents may also cause serious injuries to pedestrians walking on city streets or highways where trucks are traveling at high speeds.

Commercial trucking insurance is something you should consider a part of your business's overall risk management strategy. That’s because it helps protect you from damages caused by uninsured or underinsured motorists who run into your vehicle during their own driving experience.

Moreover, it helps ensure that all drivers have adequate coverage so that everyone can drive safely on public roads without worrying about getting into an accident with another vehicle or being hit by debris from a crash scene.

Why do you need to insure your commercial trucks?

The last thing a business owner needs is an unexpected accident, which can be costly, time-consuming, and stressful. Worst of all, it can largely impact a business's growth.

Here are several situations where commercial truck insurance can come in handy.

Theft

Suppose a shoplifting incident occurs in one of your retail stores or restaurants and costs you a certain amount. In that case, most likely, it will be covered by your auto policy (unless there are specific exclusions).

Damage

It also often covers something as unexpected as fire damage caused by an electrical short circuit or from careless disposal of cigarettes lit on the top of tables. These types of fires could cause thousands upon thousands worth of losses.

Unexpected failures

Apart from these accidents, there’s also the possibility of a mechanical failure.

Such failures could result in significant delays in shipments or possibly cargo spoilage. Additionally, adverse weather can harm your cars and prevent you from carrying out your operations.

You see, most retail businesses out there do not have proper evacuation plans.

So, when things actually go wrong, there is usually no contingency plan that could help them bear the costs. You can be one step ahead in the game by planning for such unexpected events and keeping your assets protected.

Besides, commercial truck insurance is not only necessary to safeguard against loss and liability, but it is also mandated by law. Therefore, check with advisors and government authorities to ensure that you at least follow the minimum requirements to meet compliance.

If your business does not have the appropriate kind of commercial insurance, you may be subject to heavy fines and legal action.

Having adequate truck insurance ensures that your trucks resume normal operations as soon as possible after an accident while also strengthening your reputation as a dependable and trustworthy business.

Finding the right coverage

Picking the right commercial truck insurance can be a tricky thing to navigate.

Many different types of policies and carriers offer coverage, which makes it hard for new businesses or those with limited experience in this area.

The basic plan covers your truck in the event of an accident. To cover damages from various dangers, you must look at some collision and comprehensive plans.

Things covered under commercial truck insurance

Many factors can be covered in a commercial truck insurance policy. Here’s a list of all the coverage insurance companies generally take into account.

Liability costs: This covers the legal fees if a third party sues you for injuries or property damage brought by your truck.

Medical bills: Covers the bills of those involved in accidents.

Collision coverage: Any damage that occurred to the truck while in collision with another vehicle is covered.

Comprehensive insurance: This is your best bet when your trucks are subject to theft and vandalism, in addition to other events.

Uninsured motorist coverage: For the event when an uninsured motorist hurts the truck's driver and passengers or causes damage to your truck.

Towing Disabled Vehicle: If you own a heavy duty truck, your commercial truck insurance will pay for any damage your insured vehicle causes to a third-party vehicle.

Remember to pick the insurance plan that’s tailored to your needs and helps you be prepared for the road ahead without worrying about the nitty gritty.

For example, take a look at how Cover Wallet has four tiers of commercial truck insurance plans for different coverages - from the basic one limiting to cargo and theft coverage to offering custom solutions for when business owners have specific needs to get covered.

source

To save yourself from the hassle of selecting the right policy, another thing you can do is take the help of an agent. Look for someone who understands the needs you’re looking to cover and provides accurate quotes based on their knowledge and experience in the industry.

Agents may also assist with obtaining other necessary documents for coverage, such as proof of financial responsibility, proof of liability insurance coverage, or any other required information you need before applying for coverage from their company itself.

What’s usually not covered

Though truck insurances are good enough to save your business, employees, and trucks from unforeseen adversity, remember, it still doesn’t take care of all adversities.

Driving without a valid license

According to the Coffs Harbour car detailing business owners, “...it's critical for owner-drivers to always have a license that is in good standing with the law.

If not, the law will hold you and your business accountable for your carelessness. Moreover, this might bar you from making a claim on your insurance for your losses.”

Sheer negligence

Of course, asking for a claim when you drive your truck during harsh weather wouldn't be fair. You’ll be responsible for all the damage in this case.

Drunk driving

The insurance company will reject any claim involving drunk drivers causing damages.

How much can commercial truck insurance cost?

Now, no one cost fits a business's needs—it depends on many factors and circumstances.

Company size and operations

The bigger your company is and the more vehicles you’ll need. This means you’ll have to pay higher insurance premiums.

Business location

Insurance laws differ from state to state and country to country. Based on what laws a place has, the premium coverages may differ. This is why you’ll find different premium rates in different regions.

In case, your business operates across state borders, and you can expect to pay more for the policy.

The truck size or goods you transport

There’s no way a standard sized delivery truck can cause as much damage as a heavy cargo truck. Hence, you may have to pay a higher insurance premium if your work involves heavy vehicles or if you transport more dangerous goods.

For example, anything related to pharmaceuticals would require special coverage.

Also, due to the higher cost of repairs for newer vehicles, you may also need to pay higher premiums for new trucks.

Past records associated with accidents

The insurance company will do a background check on your company’s accident-related history. The cleaner your slate is, the better the premium you can expect to get!

The coverage you choose

Of course, the more coverage you add to the policy, the premium limits keep increasing. You have an option to lower it by choosing a higher deductible that will require you to pay more from your end if a claim occurs.

To sum it up

Commercial truck insurance is an important part of any business's operation. It can be a life saver in case of an accident and a crucial resource for businesses that depend on their trucks for transporting goods or transporting people.

Now you’ve got the basic idea about the whats and hows of commercial truck insurance. We hope it’ll help you pick the perfect premium plan for your business and grow only onwards from now on.

Author’s bio

Deepali is an engineer-turned-freelance writer for B2B SaaS, writing actionable long-form content for companies in marketing, cybersecurity, and HR tech.

When she's not writing, she's engrossed in a cozy murder mystery novel with a cup of hot chocolate.

Featured