The trucking sector is an integral part of the economy of a country. Trucks are known to transport materials and goods efficiently, but they often face significant risks such as theft, damage to cargo, and life-threatening accidents.
With hundreds of trucks on the road, the FMCSA (Federal Motor Carrier Safety Administration) has stringent rules and regulations about warranty coverage.
Not only are trucks heavy, but they can also cause severe and expensive damages and are more likely to get stolen than small cars/vehicles. But did you know that your fleet of trucks cannot operate without the right truck insurance?
Go here to learn more. Vehicle coverage offers financial protection against liabilities & risks that are related to operating trucks.
Types Of Truck Insurance
There are more than a few types of warranty. Each of them is designed to cover various aspects of trucking operations. They include:
Motor-Carrier Insurance
This type is for businesses that hire professional truck drivers to operate their trucks. It covers physical damage, liability, worker’s compensation, and cargo. It is designed to safeguard your business from liabilities related to your staff operating company trucks.
Owner-Operator Insurance
This coverage is for truck drivers who own and operate the trucks themselves. It includes cargo coverage, liability, and physical damage. It’s designed to offer full coverage for owner-operators.
What Does Truck Insurance Cover
1. General Liability Insurance
This truck insurance covers other risks such as advertising injuries, bodily injuries, and property damage. General liability protects your business from lawsuit expenses, and it’s often required for contracts and leases.
Know that liability insurance is a legal necessity. Its key role is to protect your business from legal disputes.
2. Primary Liability Insurance
This is also called Trucking Liability Insurance. It’s the least warranty required. It covers damage to another person’s vehicle or injuries to individuals in the event of a crash. It doesn’t cover the driver, lawsuits, and the truck.
3. Cargo Insurance
This covers freight in transit. It mainly covers damage and loss to cargo caused by fire, theft, equipment breakdown, collision, bad weather, and crashing into the cargo.
There are exclusions for a few types of cargo, such as explosives, materials, jewelry, live animals, and art.
If your trucking company delivers valuable goods, having this insurance is an excellent idea. It protects your business against financial losses if the goods get damaged during transportation.
4. Physical Damage Insurance
It’s also called collision coverage. The law does not require this coverage. This warranty covers replacing or fixing damaged trucks, trailers, and tractors.
Typically, it doesn’t cover damage to tools, cargo, electronics, personal items of the truck driver, or any other item that’s not attached permanently.
This warranty is vital for commercial trucks owing to their expensive repair costs and replacements.
Visit: https://blog.summar.com/everything-you-should-know-about-trucking-insurance to know more.
5. Trailer Interchange Insurance
It encompasses physical damage to trailers under an interchange agreement. This type covers damages & losses caused by fire, vandalism, collision, and theft.
6. Medical Payments Insurance
This covers the medical bills for both the driver and the passenger in the event of an accident. Given the severity of the accident, this coverage is important to ensure that medical costs are covered.
Benefits Of Truck Insurance
The benefits of a truck warranty include but are not limited to the following:
Liability Protection
Truck insurance offers protection against property damage, third-party injury, or PI (Personal Injury) claims from accidents/crashes involving a truck that’s insured. helps cover judgments, potential settlements, and legal costs.
Property Damage Coverage
This provides coverage for damages caused to the insured truck, including theft, accidents, or collisions. It lessens the financial burden of replacement & repairs.
Roadside Assistance
Most warranty policies provide extra benefits, such as towing services, roadside assistance, and even emergency fuel/gas delivery. These helps curtail downtime and keep your vehicle business running effectively.
Medical Expenses
If an accident occurs, the right vehicle warranty will cover medical costs sustained by the passengers, drivers, or other parties involved.
Click here to learn more about other benefits.
Why Do You Need Vehicle Insurance
The following are the reasons:
- Financial Protection
Truck insurance protects your trucking business from financial losses due to damage, theft, or accidents. Without this insurance, your business will be responsible for paying out of pocket. This could make your business go bankrupt.
2. Legal Requirement
In some states, there’s a rule that trucks must have liability insurance at minimum coverage. Operating your commercial vehicle business without the required insurance often results in penalties and fines. Your company may even face suspension for a while.
3. Customer Requirements
Many clients require cargo insurance before they can do business with you. With the right insurance, you can attract and retain customers.
It is an essential aspect of running your trucking business. Aside from providing financial protection against theft, damage, and accidents, it’s a legal requirement in most jurisdictions. Get a truck warranty if you don’t want your business to be susceptible to unexpected situations.
