Road transportation is the primary method used in the logistics industry to transport raw and finished goods from one location to another within a country. Commercial trucks are the most convenient and popular means of transporting that cargo.
While every business requires a financial shield, commercial vehicle insurance serves the same purpose for the trucking industry.
Insurance companies are lining up with various truck insurance coverages such as third-party liability and general liability for businesses and drivers. You are required to select any coverage that meets your needs. However, before making any decision, it is necessary to conduct extensive research in order to find the best potential decision for you as well as the company.
And to assist you in your research, we have listed below the reasons why it is important to have truck insurance for your trucking company as well as the types of commercial coverages accessible to you.
Why is it important to have commercial truck insurance?
The larger the vehicle, the greater the likelihood of greater damage in the event of an accident, and thus the greater the risk!
According to the past records of road accidents involving commercial trucks, several fatal injuries such as neck-break, spinal cord damage, brain hamerroge, or even death have occurred to both sides of the parties as a result of collisions, overspeeding, or incorrect overtaking on either side of the party.
While commercial vehicle insurance is not required by law, it is strongly advised for any transportation company or contractor who relies on commercial trucks for a living to protect themselves from any unforeseen circumstances.
List of Commercial Truck Insurance Coverage Items
Before proceeding with the list, it is important to note that different insurance policies apply to different assets, so they will be liable for different claims, and that too within policy limits. So, here are the scenarios in which your commercial truck insurance will cover your losses:
- Accidents/ Collisions: Accidental damages to the insured vehicle are protected.
- Natural Calamities: Severe weather conditions and natural disasters such as earthquakes, cyclones, floods, and lightning are common happenings these days.
- Theft and Vandalism: When a truck disappears (theft) or is hammered into pieces due to tragic circumstances, it is a source of great surprise. Having your losses covered by an insurance policy is always a huge relief in these situations.
- Personal Accident Coverage: Personal accident coverage, like vehicle insurance, is critical to protect the owner-driver in the event of injury or death due to an accident. This is something that commercial truck insurance will cover.
- Third-party losses (Personal and Financial): If your insured truck causes damage to a third-party carrier, your liability insurance will come to the aid to cover the financial costs.
- Towing Disabled Vehicle: In the case of heavily loaded trucks, your tow truck insurance will cover the damages caused by the insured vehicle to a third-party vehicle.
List of Exclusions from Truck Insurance
As previously stated, truck insurance is sufficient to protect you and your vehicle from unexpected adversity; however, not all adversities are covered by commercial truck insurance. In such cases, it is prudent to be aware of the list of omissions from truck insurance coverage.
- Steering without a valid driver’s license: It is critical for an owner-driver to have a legal permit when on the road. If you do not, you will have to pay the penalty for your carelessness and your claim won’t be liable for any losses that you have gone through.
- Contributory Negligence: Any damage or losses caused as a result of contributory recklessness are not covered by the insurance. For example, if you drive your truck notwithstanding the flood and something goes wrong. In that case, there really is no way to file an insurance claim.
- Drinking and Driving: If the trucker is intoxicated while driving the truck, any damage to the truck or oneself will not be insured. Such assertions will be dismissed.
- Consequential Damages: If your truck sustains damage or losses that are not directly related to an accident of any kind, your insurance coverage will not cover the losses.
Benefits of Commercial Truck Insurance For Your Business
True, any insurance company is an extra cost, and it can appear costly, especially for smaller firms or those with a huge fleet to insure. Even so, the advantages of truck insurance far outweigh the costs – and failing to insure can be a costly mistake.
Furthermore, it is important to note that it is frequently a legal requirement in some states to have suitable insurance cover in place, as well as a smart financial move. It is your responsibility to comply with any legal requirements pertaining to your commercial activities.
So, here are some leverages that you can take with the commercial truck insurance policies.
Protects Your Assets
A truck is a large financial investment that can be very expensive to repair or replace if something goes wrong with it. Heavy motor insurance safeguards your investment by providing financial assistance if you need to pay to fix your truck. There are numerous risks when driving, and the appropriate truck insurance will provide you with peace of mind.
While we’d like to believe that none of it will happen, things can go wrong, and it’s best to be geared up in case something does happen so that you really can bounce back without supplementary financial hardship.
Downtime insurance cover
If you depend heavily on your truck for a living, you may face serious financial hardship if you are incapable of operating due to truck damage or loss. Downtime insurance is aimed to keep you heading if you are unable to use your vehicle. Your insurance company will focus on providing financial assistance to help you repair your truck and cover your daily living costs till you can get ahead on track.
Covers incidents both big and small
Even apparently inconsequential incidents, such as a windshield chip, can be expensive to fix and can put a halt to operations. Truck insurance doesn’t just cover big accidents like rollovers. Truck insurance protects you, your company, and other drivers on the road from major and minor accidents.
When your and the livelihood of your family depends on the truck business, you must take all the requisite precautions to protect it. And you can take the first step by insuring your trucks, which are your most valuable assets. Insurance will assist you to run your logistics business fluidly by keeping you away from any financial strain.
Never, whether in business or in life, allow your journey to come to an abrupt halt!
Hope you found this blog informative. If you have any questions regarding the commercial truck insurance and their claim policies, feel free to ask in the comment section below. We will be happy to assist you!