Big Rig Truck Insurance Policy Information
Big Rig Truck Insurance. The transportation industry has been essentially revolutionized by semi-trucks; these huge vehicles allow businesses to inexpensively and quickly get their goods from one point to another. However, it is a risky business to be in, both for drivers and owner operators.
There are thousands of fatal accidents in which large trucks are involved each year.
Semi-trucks and trailers are a huge liability to their owners. big rig truck insurance coverage is a critical purchase for owners, since it protects them from financial ruin if a truck under their control or that they own is involved in a serious accidents.
Big rig truck insurance helps your business cover costs from an accident if you or an employee is found liable - with rates as low as $57/mo. Get a fast quote and your proof of insurance now.
Below are some answers to commonly asked big rigs insurance questions:
- What Is Big Rig Insurance?
- How Much Does Big Rig Insurance Cost?
- Why Do Big Rig Truckers Need Insurance?
- What Type Of Insurance Do Big Rig Truckers Need?
- What Does Big Rig Truck Insurance Cover & Pay For?
What Is Big Rig Insurance?
Big rig insurance, also known as commercial truck insurance, is a type of insurance that covers commercial vehicles, such as tractor-trailers, semi-trucks, and other large vehicles used for transportation of goods.
This type of insurance typically includes coverage for liability, collision, and comprehensive damage, as well as medical payments and uninsured motorist coverage. It may also include coverage for cargo and equipment, as well as protection for the driver and other employees.
Big rig insurance is typically required by law for commercial trucking companies and operators, as well as any business that owns and operates commercial vehicles. The insurance can be customized to meet the specific needs of the business, such as the type of cargo being transported, the number of vehicles in the fleet, and the number of drivers. Some policies may also include coverage for roadside assistance, rental vehicles, and towing.
How Much Does Big Rig Truck Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for big rig truckers ranges from $57 to $159 per month based on location, vehicle typ, miles driven, payroll, sales, driving history and more.
Why Do Big Rig Truckers Need Insurance?
Big rig trucks, also known as semi-trucks or 18-wheelers, are a vital part of the transportation industry. They transport goods and materials across long distances, and play an important role in keeping the economy running smoothly. However, due to their large size and heavy loads, these trucks can also pose a significant risk on the road. For this reason, it is essential for big rig truck owners to have insurance coverage to protect their vehicles, drivers, and others on the road.
One of the main reasons why big rig trucks need insurance is to protect against potential accidents and damage. These trucks can weigh up to 80,000 pounds and can cause significant damage to other vehicles and property in the event of a collision. Insurance can help cover the costs of repairs, medical bills, and other expenses associated with an accident.
Another reason why big rig trucks need insurance is to protect against liability. As a big rig truck driver, you are responsible for the safety of your vehicle and cargo, as well as the safety of other drivers on the road. Big rig truck insurance can help protect you from any legal action taken against you in the event of an accident.
Additionally, big rig trucks are often expensive to repair or replace. Insurance can help cover the costs of repairs or replacement if the truck is damaged or destroyed in an accident. Without insurance, these costs could be financially devastating for a truck owner.
In conclusion, big rig trucks need insurance for a variety of reasons. Insurance can protect against accidents and damage, liability, and the high costs of repairs or replacement. It is essential for all big rig truck owners to have insurance coverage to protect their vehicles and drivers, as well as other drivers on the road.
What Type Of Insurance Do Big Rig Truckers Need?
When building a big rig truck insurance for your rig, you should keep the following in mind. These are additional coverages that may not be required by law, but may be require by the finance company that loans the money for the owner to purchase the rig. These include:
- Medical payments insurance. This coverage is for medical expenses incurred by drivers or passengers in other vehicles or the driver of a big rig involved in an accident. Most insurance companies require that owner/operators or owners provide them with the names of any operator who may be driving the vehicle, and sometimes they base the rate you pay for coverage on the driving records of those who are going to be driving.
- Physical damage coverage. Lenders nearly always require physical damage insurance if you have financed the rig's purchase. This coverage must remain in force for the length of the loan. If the truck becomes damaged due to a collision, this insurance pays for damage without regard to fault. Comprehensive policies also cover losses due to theft, vandalism, fire and other natural disasters.
- Motor truck cargo coverage. Cover the cargo being hauled with this type of coverage. Federal law mandates $5K minimum coverage for cargo, but individual shippers may require additional limits. This coverage protects you if the cargo you haul is damaged or loss during transit.
- Equipment coverage. In addition to a physical damage, equipment coverage protects you from loss for equipment you keep in the truck, such as navigational devices, electronics, tarps, chains and other items.
- Bobtail coverage. For times when the commercial tractor is operated on its own without a trailer, bobtail insurance can be essential.
- Non-trucking liability coverage. This coverage kicks in when you are driving the truck outside of business purposes. For instance, when you drive to or drive from the job site or if you use it for any personal reason.
- Occupational accident coverage. This coverage is similar to worker's compensation insurance, but acts as a supplement. It provides your employees with long-term disability and payments for accidental death or dismemberment.
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.
Description for 4212: Local Trucking without Storage
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 421: Trucking And Courier Services, Except Air
4212 Local Trucking without Storage: Establishments primarily engaged in furnishing trucking or transfer services without storage for freight generally weighing more than 100 pounds, in a single municipality, contiguous municipalities, or a municipality and its suburban areas.
- Baggage transfer
- Carting, by truck or horse drawn wagon
- Debris removal, local carting only
- Draying, local: without storage
- Farm to market hauling
- Furniture moving, local: without storage
- Garbage, local collecting and transporting: without disposal
- Hauling live animals, local
- Hauling, by dump truck
- Local trucking, without storage
- Log trucking
- Mail carriers, bulk, contract: local
- Refuse, local collecting and transporting: without disposal
- Rental of trucks with drivers
- Safe moving, local
- Star routes, local
- Truck rental for local use, with drivers
- Trucking timber
Description for 4213: Trucking, Except Local
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 421: Trucking And Courier Services, Except Air
4213 Trucking, Except Local: Establishments primarily engaged in furnishing "over-the-road" trucking services or trucking services and storage services, including household goods either as common carriers or under special or individual contracts or agreements, for freight generally weighing more than 100 pounds. Such operations are principally outside a single municipality, outside one group of contiguous municipalities, or outside a single municipality and its suburban areas.
- Long-distance trucking
- Over-the-road trucking
- Trucking rental with drivers, except for local use
- Trucking, except local
Description for 4214: Local Trucking with Storag
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 421: Trucking And Courier Services, Except Air
4214 Local Trucking with Storag: Establishments primarily engaged in furnishing both trucking and storage services, including household goods, within a single municipality, contiguous municipalities, or a municipality and its suburban areas.
- Furniture moving, local: combined with storage
- Household goods moving, local: combined with storage
- Trucking, local: combined with storage
What Does Big Rig Truck Insurance Cover & Pay For?
Big rig truck operators can be sued for a variety of reasons, including accidents that result in property damage or injury, violations of traffic laws, and cargo theft or damage. Insurance plays a critical role in protecting truck operators from these risks.
Here are a few examples of how insurance can help pay for lawsuits brought against big rig truck operators:
Accidents causing property damage or injury: If a big rig truck operator is involved in an accident that results in property damage or injury, they may be sued for damages. Liability insurance is designed to protect the truck operator in such cases. If the truck operator is found to be at fault for the accident, their liability insurance will help pay for damages awarded to the plaintiff.
Violations of traffic laws: If a big rig truck operator violates traffic laws, they may be cited by law enforcement and face fines. If the violation results in an accident, the truck operator may be sued for damages. Commercial auto insurance includes coverage for fines and legal expenses related to traffic violations. This coverage can help pay for legal fees if the truck operator is sued.
Cargo theft or damage: Big rig truck operators may also be sued if the cargo they are transporting is stolen or damaged. Cargo insurance is designed to protect against such risks. If the cargo is stolen or damaged, the truck operator's cargo insurance will help cover the cost of replacing or repairing the cargo.
In summary, insurance is essential for big rig truck operators because it helps protect them from the financial risks associated with accidents, violations of traffic laws, and cargo theft or damage. Insurance can help pay for legal fees and damages awarded to plaintiffs, ensuring that truck operators are able to continue operating their business without facing financial ruin.
Big Rig Truck Insurance - The Bottom Line
When choosing the right big rig truck insurance policy for your needs, work with an agent who has experience in working with truckers, owner/operators and trucking companies. Compare rates through your agent to find the best possible rate and the coverage limits you need to completely protect your financial interests and your business.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Limousine
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Repossession
- Taxi
- Tow Truck
- Truck
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage
Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.
Federal Motor Carrier Safety Administration Information
- Federal Motor Carrier Safety Administration (FMCSA) - The Federal Motor Carrier Safety Administration's primary mission is to prevent commercial motor vehicle-related fatalities and injuries.
- Safer System - The FMCSA Safety and Fitness Electronic Records (SAFER) System offers company safety data and related services to industry and the public over the Internet. Users can search FMCSA databases, register for a USDOT number, pay fines online, order company safety profiles, challenge FMCSA data using the DataQs system, access the Hazardous Material Route registry, obtain National Crash and Out of Service rates for Hazmat Permit Registration, get printable registration forms and find information about other FMCSA Information Systems.
- FMCSA Forms - All forms needed for the Federal Motor Carrier Safety Administration.
- Update MCS 150 - Form MCS-150 and Instructions - Motor Carrier Identification Report.
- How does CSA work? - CSA (Compliance - Safety - Accountability) re-engineers the former enforcement and compliance process to provide a better view into how well large commercial motor vehicle carriers and drivers are complying with safety rules, and to intervene earlier with those who are not.
