As a trucker, you know that driving a commercial vehicle can be risky. There are many factors outside of your control, such as weather conditions, road hazards, and other drivers, that can cause accidents and damage to your truck. That’s why it’s essential to have truck insurance to protect your business and focus on its development.
Who Needs Truck Insurance?
If you own a trucking business or work as an independent contractor, you need truck insurance. It doesn’t matter if you’re hauling goods across the country or providing local delivery services – you need to be protected against potential risks and claims.
Types of Insurance Needed by Truckers
There are several types of insurance that truckers should consider:
1. Liability Insurance – This covers your business against claims of bodily injury or property damage that may occur during the course of your work. For example, if you’re involved in an accident that results in another person’s injury or property damage, this coverage will protect you from any associated costs.
2. Physical Damage Insurance – This covers the repair or replacement costs of your truck if it’s damaged due to an accident or other covered event.
3. Cargo Insurance – This covers the value of the goods you’re transporting in case of theft, damage, or loss.
4. Workers’ Compensation Insurance – This coverage is required by law in most states and provides benefits to employees who are injured on the job. It covers medical expenses, lost wages, and other related costs.
5. Bobtail Insurance – This coverage applies when you’re driving your truck without a trailer attached. It covers you against accidents or damage that may occur while driving for non-business purposes.
How Much Does Truck Insurance Cost?
The cost of truck insurance varies depending on several factors, such as the size of your business, the types of services you provide, and the number of trucks you have.
If you need competent help in choosing the best adjusted and most affordable insurance for your business, we can provide our professional support here at General Liability Insure.
Truck Driving Risks & Exposures
Truck drivers face a variety of risks and exposures, such as:
- Accidents – Truck accidents can cause significant damage to your truck, other vehicles, and, most importantly, people. They can also lead to costly legal claims and lawsuits.
- Cargo theft or damage – Cargo theft or damage can result in significant financial losses for your business.
- Workers’ compensation claims – Truck drivers are at risk of on-the-job injuries due to the physical demands of driving and loading and unloading cargo.
- Business interruption – Events like natural disasters or power outages may cause you to shut down temporarily, leading to loss of income.
- Equipment breakdown – Your truck may break down, leading to costly repairs and lost income.
Insurance Classification Of Truckers
Insurers classify trucking businesses using several coding systems. You can wind up paying more for your insurance if your trucking company is not properly classified – like a general freight carrier being coded as a hazmat carrier. Below are the three most commonly used coding systems for truckers insurance:
- SIC CODES: 4212 Local Trucking without Storage, 4213 Trucking, Except Local, 4214 Local Trucking with Storage
- ISO General Liability Codes: 99793
- NAICS CODES: 484110 General Freight Transit, Local, 484121 General Freight Transit, Long-Distance – Truckload, 484122 General Freight Transit, Long-Distance-Less than Truckload, 484220 Specialized Freight (except Used Goods) Transit, Local, 484230 Specialized Freight (except Used Goods) Transit, Long-Distance
- Suggested Workers Compensation Codes: 7228, 7229, 7230, 7231, 7232.
Truck Insurance – The Bottom Line
Truck insurance is essential for protecting your business from the effects of various unexpected problems. It provides financial protection against potential risks and claims, which can be costly and time-consuming to deal with. By investing in the right insurance coverage, you can focus on providing high-quality services to your clients, knowing that you’re protected against unforeseen events.
When choosing an insurance provider, make sure to shop around and compare policies and prices from different providers. Look for an insurer who specializes in truck insurance and has experience working with businesses like yours.
If you don’t feel like doing it yourself, don’t worry – we’re here to help you. Contact General Liability Insure now!