If you are new to the trucking industry, commercial transportation insurance may not be a term that you are familiar with. However, it is a term that you need to educate yourself on quickly because you will need to carry a commercial transportation insurance policy if you own or operate a truck or big rig. Just like auto insurance policies, commercial transportation insurance policies have different coverage amounts for different types of coverage. Here are a few of the things that a commercial transportation insurance policy covers.
The Truck Itself
One of the things that commercial transportation insurance covers is the truck or big rig itself. As you look to purchase insurance, you need to consider what types of coverage you want and what items you want to be covered. For example, if you own a trailer and a flatbed, you may need to ensure both items are covered. Unless it is stated otherwise in your policy, you need to list every type of trailer attachment that your truck or big rig will be towing. Also, as is the case with auto insurance, there are different types of coverage, such as full coverage. Carefully consider what your needs are to ensure that you have the right coverage amount.
Another element that commercial transportation insurance covers is physical damage. This helps to cover you, as the driver, if you are involved in an auto accident and become injured. it also helps to cover any other drivers that you may hit and injure while on the road. In some cases, physical damage coverage may also extend to cover you if you are responsible for loading or unloading the cargo in the truck and get injured. This is important if you are an independent contractor and are not covered by workers' compensation policies.
The final thing that commercial transportation insurance covers is cargo. The gear that you are hauling can be pricey. If your truck is stolen, involved in an accident, or catches on fire, the cargo you are transporting can be damaged. The clients who are paying you to transport the cargo entrust you with their goods. If something happens to their goods, you are likely responsible for reimbursing them. This type of insurance helps you to reimburse for the cargo that is damaged or destroyed.
If you are looking to obtain work as a trucker and/or you own a big rig that you are leasing out, you are required to carry commercial transportation insurance. Talk to various companies that offer commercial transportation insurance—such as Russell Agency—to find a company that offers the insurance coverage you need at a price that you can afford.