What is Commercial Truck Insurance and Should I Buy It for My Business?

If you’re an owner of a trucking business, or the nature of your business requires you to own a fleet of trucks, or you overlook a group of truck drivers who’re driving leased trucks, you need to have Commercial Truck Insurance.

Commercial trucks are large vehicles that haul massive loads of material or merchandise over long distances for long hours. If they meet an accident on the way, the damage caused will be equally massive. Since the truck is your business property or under your ownership, you’ll be held liable and will have to cover the losses and/ or damages caused. This is where Commercial Truck Insurance will come to your rescue. 

If you are unsure about whether or not to invest in Commercial Truck Insurance for your business, this blog post will help you make an informed decision. 

What is Commercial Truck Insurance?

A Commercial Truck Insurance is a group of auto insurance policies that are designed to offer owners of trucking businesses financial security in case of accidents where there’s been damage to property or loss to the public because of your truck. Commercial Truck Insurance ensures that people and properties are protected from any damage caused by your truck. The losses and damages are covered by this insurance which keeps you out of any financial troubles – that are often too big for small businesses. 

What’s the Difference between Commercial Truck Insurance and Commercial Auto Insurance?

You may assume that Commercial Truck Insurance and Commercial Auto Insurance are the same things, but they are not. Commercial Auto Insurance covers vans, cars, and for-hire truckers. These vehicles don’t pose as big of risks to property and people as commercial trucks. The damage caused by commercial vehicles other than commercial trucks isn’t as much as the damage that is caused by commercial trucks. If you buy Commercial Auto Insurance for your commercial trucks, you’re sure to find yourself under-insured in case of an accident involving your commercial truck.

Types of Commercial Truck Insurance

Depending on the nature and scale of your business, you can choose to invest in any of two types of Commercial Truck Insurance; primary liability insurance and general liability insurance.

Primary liability insurance is suitable for you if you’re a truck driver and want to be covered in case of accidents while you’re driving your truck yourself. This type of Commercial Truck Insurance will save you from paying hefty penalties or damage costs in case your truck causes damage or loss. The property and people are protected.

However, if you own a trucking business or operate a fleet of commercial trucks, you’ll need general liability insurance. This insurance offers a wider coverage – more than just offering protection to property and people. The general liability insurance covers you in the case the sufferer decides to take you to court in a lawsuit or in the case of slander or libel against you or your business. The FMCSA (Federal Motor Carrier Safety Administration) requires any business involved in trucking operations to have general liability insurance. All trucks in your fleet should have insurance coverage of at least $750,000.

The Need for Commercial Truck Insurance

You may wonder – I have got expert drivers and highly maintained trucks; why should I put in so much money to buy Commercial Truck Insurance when I’m pretty sure there will be no accidents?

1 in 3 small businesses has to shut down their operations because of the hefty costs they’ve to bear in case of accidents and lawsuits. The cost of lawsuits and accident damage coverage is so much that small businesses can’t sustain it, and that leads to them going bankrupt, and hence, shutting down. A commercial truck accident costs $59,000 on average. This is a good enough reason to buy Commercial Truck Insurance for your business. It may seem like an expense, but it’s actually a business-saving proactive measure. 

What Does Commercial Truck Insurance Cover?

Commercial Truck Insurance provides owners of trucking businesses a reasonable amount of security. The areas that this insurance covers include:

Medical Costs in Case of Injury to People

If you accidentally hit someone by your truck, Commercial Truck Insurance will cover the costs of the potential lawsuit and medical expenses. It also offers medical coverage to someone who gets hurt (slips or falls) on your business premises. 

Damage to Commodities or Property

If your truck causes damage to someone’s property, Commercial Truck Insurance will cover the cost that goes into fixing the damage. Moreover, if you deliver the commodities to the wrong address or damage them, the general liability insurance will also cover its cost.

Damages or Accidents at Delivery Location

If the driver meets an accident and causes damage at the delivery location, Commercial Truck Insurance will cover the cost of all damages caused. 

Slander, Libel, and False Advertising Claims against Your Business

General liability insurance will cover you in the event of a false advertising lawsuit, slander, or libel.

What Commercial Truck Insurance Doesn’t Cover

You can’t expect Commercial Truck Insurance to provide coverage in all instances. There are situations where it won’t come to your rescue. Some of these cases are:

• Vehicles other than commercial trucks like ice cream trucks, cement trucks, etc. 
• Driver injuries
• Damage to the commercial truck itself
• Loss of cargo
• Loss of products due to problem with the refrigeration compartment 
• Financial losses to the business post-accident if it takes time for the driver or truck to get back in shape to resume work

What Factors Affect the Cost of Commercial Truck Insurance?

Commercial Truck Insurance comes at a cost which is the primary reason why business owners are so reluctant to buy it. Let’s have a quick walkthrough of the various factors that affect the cost of Commercial Truck Insurance:

• The function of the truck (whether it carries material or tows vehicles)
• The distance that a commercial truck covers every year; the longer the distance, the greater the policy cost.
• What the truck hauls (finished goods or raw materials or is only meant to haul garbage or is involved in towing vehicles)

A simple and straightforward answer to your question should I buy Commercial Truck Insurance for my business is a definite yes. It offers protection to people and property in case of damage due to accidents involving a commercial truck that you would have to pay for otherwise. These costs are usually very high that can affect your business significantly. With Commercial Truck Insurance in place, you can pursue your trucking business with more confidence.