Truck Insurance Policy Information
Truck Insurance. Truckers transport cargo from its initial loading and pickup at the shipper's location to final delivery and unloading at the receiver's location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers' goods. While some truckers transport freight to the same destinations over and over, others transport single shipments to a particular destination. The trucking industry is regulated by a number of federal agencies.
Whether your business owns a single truck or 100 trucks, commercial truck insurance that matches your particular risks and the perils your drivers face on the roadway is important to the success of your business.
Maybe you have just one commercial truck that is used for deliveries, or perhaps you have an entire fleet of trucks that deliver freight throughout the country.
Either way, your insurance needs for commercial trucking are unique, and your coverage should reflect just that.
Truckers transport cargo from its initial loading and pickup at the shipper's location to final delivery and unloading at the receiver's location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers' goods. While some truckers transport freight to the same destinations over and over, others transport single shipments to a particular destination. The trucking industry is regulated by a number of federal agencies.
Truck insurance protects your commercial trucking business from lawsuits with rates as low as $217/mo. Get a fast quote and your proof of insurance now.
Below are some answers to commonly asked yoga instructor insurance questions:
- What Is Truck Insurance?
- How Much Does Truck Insurance Cost?
- Why Do Truckers Need Insurance?
- What Type Of Insurance Truck Drivers Need?
- How Do I Find The Best Commercial Truck Insurance Quote?
- What Does Truck Insurance Cover & Pay For?
What Is Truck Insurance?
Truck insurance is a type of insurance policy that is specifically designed to protect truck drivers and their vehicles. This type of insurance provides coverage for a wide range of potential risks and hazards, including accidents, theft, vandalism, and natural disasters.
The coverage provided by truck insurance typically includes liability insurance, which covers any damage or injury that you may cause to another person or their property while operating your truck. It may also include collision insurance, which covers damage to your truck in the event of an accident, and comprehensive insurance, which covers damage to your truck from non-collision events, such as theft or vandalism.
In addition, truck insurance may also include coverage for medical expenses, lost wages, and other costs associated with an accident. Some policies may also provide coverage for towing and rental cars, in the event that your truck is damaged or stolen.
Overall, truck insurance is an important investment for any truck driver, as it provides protection against a wide range of potential risks and hazards. Whether you are a professional truck driver or a hobbyist, having truck insurance can give you peace of mind and help you to avoid financial losses in the event of an accident or other incident.
How Much Does Truck Insurance Cost?
The average price of a standard $1,000,000 Commercial Auto Liability Insurance policy for small owner-operator trucking business ranges from $217 to $997 per month based on vehicle, distance driven, loads hauled, driving history and experience.
Why Do Truckers Need Insurance?
Truckers need insurance to protect themselves and their business from financial loss in case of accidents or other unexpected events. The nature of trucking, with long hours on the road and the potential for large loads and heavy machinery, means that the risk of accidents and damages is significant. Insurance can provide coverage for damages to the truck, cargo, and other property as well as liability for injuries or damage to other vehicles or property.
It can also provide protection for lost income in case of downtime or other unexpected events that disrupt business operations. Additionally, many states and regulatory agencies require truckers to have insurance in order to operate legally.
Without truck insurance, truckers would be at risk of financial ruin in the event of an accident or other unfortunate incident.
Furthermore, insurance also provides protection for truckers in case of legal disputes. If a trucker is involved in an accident or another incident that leads to legal action, insurance can provide coverage for legal fees and any settlements or judgments. It also covers the truckers from any third party claims of bodily injury or property damage.
Another important aspect of insurance for truckers is cargo coverage. This type of insurance provides protection for the cargo that truckers are transporting. It covers damages or losses to the cargo due to various causes such as accidents, theft, or natural disasters. This is especially important for truckers who transport valuable or perishable goods, as a single loss can result in significant financial loss.
In conclusion, truckers need insurance to protect themselves and their business from financial loss in case of accidents, legal disputes, and other unexpected events. It also provides peace of mind and security while they are out on the road, knowing they have a safety net in case something goes wrong. Without insurance, truckers would be exposed to significant financial and legal risks, making it a vital part of the trucking industry.
What Type Of Insurance Truck Drivers Need?
Like most commercial auto products, commercial truck coverage is available in a number of iterations. Each iteration is designed with the specific goal of protecting the owner of the policy from loss. Some types to consider include:
- Liability insurance. While most states require that owners of commercial vehicles maintain liability insurance, you should purchase the maximum amount of liability coverage you can afford. This insurance mitigates the risks that you face if you or someone driving your truck is found to have caused an accident. This type of policy usually covers bodily injury to other parties, property damaged during an accident, and the costs of defending the claim in court.
- Physical damage coverage. The cost of repairing a vehicle involved in an accident can be exorbitant, but this type of coverage handles the repair costs up to your specified policy limits. While collision coverage pays for damages due to colliding with another vehicle or object, comprehensive coverage pays for non-collision damages. For example, a truck that's damaged when the wind blows it over.
- Uninsured/underinsured motorist coverage. If you are involved in an accident with another vehicle that lacks adequate coverage to pay for repairs or that has no insurance at all, this coverage takes the place of the other party's insurance.
- Cargo coverage. Theft or damage of the freight you haul is covered by this type of policy.
How Do I Find The Best Commercial Truck Insurance Quote?
Because Truck insurance for your commercial truck can be as varied as your individual business, it can be hard to get multiple quotes for coverage. Following are common classes for commercial truck insurance:
- Box trucks
- Semi trucks
- Flatbed trucks
- Front loaders
- Garbage trucks
- Pickup trucks
- Tank trucks
- Dump trucks
- Auto hauler trailers
- Flatbed trailers
- And many more...
Working with an agent who is adept at deciphering the legalities of commercial insurance can help. The agent can analyze the way that you use your vehicle and gain understanding of your business to determine the right policy for your specific situation.
A variety of factors influence your rates. Your credit history and your business' credit rating are important when determining how much insurance will cost. Insurance companies also look at the make, model, and year of your trucks, the number of trucks you have on the road, any accidents that your business has been involved in, how far your trucks journey away from home, and how often they are driven.
Your agent will need to know a few specifics about your business, your drivers, and your typical cargo to get you the best Truck insurance quote. Some questions you may need to answer:
- Does your truck cross state lines?
- Where will your truck be garaged?
- What do you haul?
- Will you haul hazardous materials or heavy equipment?
- Are your driver's certified?
- Is your truck financed?
Using your answers and analyzing your driving record and the driving histories of your employees can help the agent to determine which options suit you best. A local agent is a good place to start looking for the necessary Truck insurance coverage you need to mitigate your risks as a commercial commercial truck owner.
Commercial Truck Classificaton
Commercial trucks are classified according to the Gross vehicle weight rating (GVWR). The United States Department of Transportation (USDOT) classifies commercial trucks with eight classes:
- Class 1 - GVWR ranges from 0 to 6,000 pounds (0 to 2,722 kg)
- Class 2 - GVWR ranges from 6,001 to 10,000 pounds (2,722 to 4,536 kg)
- Class 3 - GVWR ranges from 10,001 to 14,000 pounds (4,536 to 6,350 kg)
- Class 4 - GVWR ranges from 14,001 to 16,000 pounds (6,351 to 7,257 kg)
- Class 5 - GVWR ranges from 16,001 to 19,500 pounds (7,258 to 8,845 kg)
- Class 6 - GVWR ranges from 19,501 to 26,000 pounds (8,846 to 11,793 kg)
- Class 7 - GVWR ranges from 26,001 to 33,000 pounds (11,794 to 14,969 kg)
- Class 8 - GVWR is anything above 33,000 pounds (14,969 kg)
Trucker's Risks & Exposures
Commercial auto exposure is written on a motor carriers' policy. The exposure is very high because it includes loading and unloading of freight. There is considerable opportunity for contact with the client, who can be injured should the movers drop or overturn items being carried.
Children may be present during loading or unloading operations at residences or schools, requiring additional caution. All drivers must have training in lifting and handling of items being carried. They must have a valid commercial driver's license (CDL) for the trucks being driven and the cargo being moved. MVRs must be acceptable and checked regularly. Manipulating a large semi-trailer rig in a residential or commercial area requires training and awareness of surroundings.
All drivers must be well trained and attend continuing education courses to maintain and improve skill levels. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Random drug and alcohol testing should be required. Vehicles must be maintained and records should be kept in a central location. Accidents can result in the spillage of diesel fuel or other operating fluids from within the truck, requiring cleanup.
Property exposure can be high if the risk repairs, refuels and maintains its own vehicles on premises. Exposures include flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray-painting should be conducted in a spray booth with approved fixtures.
The condition and controls of fuel tanks, whether above or below ground, are important for both property and environmental liability. Fire hazards can arise from the combustibility of items stored for customers. There must be adequate aisle space to allow firefighters to carry out their duties. If items in storage include any flammables or ignition sources, they must be properly controlled. As stored items are attractive targets for theft, there should be appropriate security including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposure is from employee dishonesty and from money and securities. Background checks, including criminal history, should be performed on all employees handling money. Trucking operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements and reconciling bank statements. Regular internal and external audits should be conducted. As drivers, loaders and unloaders have access to customers' premises, the exposure to theft of customer property or customer identity theft increases.
Inland marine exposure is from accounts receivable, computers, motor truck cargo, valuable papers and records, and warehouse operators' legal liability. Customers' property may be damaged while being transported due to overturn, collision, or theft. Cargo containers should have locks and appropriate alarm systems. Most truckers are subject to minimum cargo legal liability requirements. The bill of lading spells out the terms of the agreement that must be honored. Insurance coverage will vary, but may exceed these minimums if customer satisfaction is important to the trucker. Any items in storage must be marked to prevent incorrect release. Records should be duplicated and be stored off site.
Premise liability exposure is extremely low due to limited public access to the premises. Cargo containers stored outside may present an attractive nuisance to minors. Fencing and lighting help reduce this exposure. Most off premises exposures relate directly to truck operations, such as loading and unloading, and are covered under the motor carriers' liability policy. Contracts may expose the operation to additional liability.
Environmental impairment exposure can be high due to underground fuel tanks and waste disposal of fluids used for servicing and repairing trucks. All underground fuel tanks must meet state or federal regulations and be routinely tested for leakage. Contracts should be in place to dispose of all environmentally dangerous chemicals. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing trucks.
Workers compensation exposure comes from driving, loading and unloading customers' goods, and repair and maintenance activities. Drivers must operate in adverse traffic conditions such as inclement weather or road construction. They must be monitored to ensure that an appropriate amount of time is allocated for sleep.
The operations of unloading and unloading have a very high potential for all forms of back injury, hernia, sprain, and strain losses from loading, unloading, and warehouse operations. The training, material handling devices, and equipment are important to review.
Garage employees can be injured by vehicles falling from hoists, strains, sprains and other lifting injuries. Good housekeeping is critical to reduce injury from slips, trips, and falls. Burns, eye injuries, and respiratory problems can occur with the welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents.
Repair areas should be properly ventilated. Proper safety equipment is required. If independent owner-operators are used, responsibility for workers compensation coverage must be specified by contract.
What Does Truck Insurance Cover & Pay For?
Truck operators can be sued for a variety of reasons, some of which include:
- Accidents: If a truck driver is involved in an accident that results in property damage or personal injury to others, they can be sued for damages.
- Cargo loss/damage: If the cargo being transported by the truck is lost or damaged, the truck operator can be sued for negligence or breach of contract.
- Violations of safety regulations: If a truck driver violates safety regulations, such as driving while fatigued or overloaded, they can be sued for negligence.
- Environmental damage: If a truck operator causes environmental damage, such as by spilling hazardous materials, they can be sued for damages.
Insurance can protect truck operators from financial loss in the event of a lawsuit. Here are some examples of how insurance can help pay for a lawsuit:
Liability insurance: Liability insurance can cover the cost of legal defense and any damages that the truck operator may be ordered to pay in the event of an accident. For example, if a truck operator is sued for causing an accident that results in $500,000 in damages, liability insurance can cover the cost of legal defense and the damages up to the policy limit.
Cargo insurance: Cargo insurance can cover the cost of lost or damaged cargo. For example, if a truck operator is sued for losing $100,000 worth of cargo, cargo insurance can cover the cost of the lost cargo up to the policy limit.
Workers' compensation insurance: If a truck operator is sued by an employee who is injured on the job, workers' compensation insurance can cover the cost of legal defense and any damages awarded to the employee. For example, if a truck driver is injured on the job and sues the truck operator for $50,000, workers' compensation insurance can cover the cost of legal defense and the damages up to the policy limit.
Environmental liability insurance: Environmental liability insurance can cover the cost of cleaning up environmental damage caused by the truck operator. For example, if a truck operator spills hazardous materials and is sued for $1 million in cleanup costs, environmental liability insurance can cover the cost of cleanup up to the policy limit.
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.
Truckers SIC Code Descriptions
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. Establishments primarily engaged in furnishing local courier services for letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4215; those engaged in collecting and disposing of refuse by processing or destruction of materials are classified in Industry 4953; those engaged in removing overburden from mines or quarries are classified in Division B, Mining; and construction contractors hauling dirt and rock as a part of their construction activity are classified in Division C, Construction.
- 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
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. Establishments primarily engaged in furnishing air courier services for individually addressed letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4513 and other courier services for individually addressed letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4215.
- Long-distance trucking
- Over-the-road trucking
- Trucking rental with drivers, except for local use
- Trucking, except local
4214 Local Trucking With Storage
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. Establishments primarily engaged in furnishing warehousing and storage of household goods when not combined with trucking are classified in Industry 4226. Establishments primarily engaged in furnishing local courier services for letters, parcels, and packages weighing less than 100 pounds are classified in Industry 4215.
- Furniture moving, local: combined with storage
- Household goods moving, local: combined with storage
- Trucking, local: combined with storage
Truck Insurance - The Bottom Line
Speak with an experienced insurance broker who understands commercial truck insurance to find the best fit coverage for your trucking 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
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow 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.