Do you need commercial insurance for a truck?
If you own a commercial trucking company, you require commercial insurance. According to https://simplexgroup.net/texas/commercial-trucking-insurance/, the FMCSA requires truckers to have liability insurance. They also require truckers who move household goods to have cargo insurance. Anyone in the trucking industry will testify that it is in your best interest to be fully insured. An uninsured accident can cost millions of dollars and a loss of that magnitude can put an end to your business.
There are several different types of insurance you will need to work in the trucking industry. Each of them covers a separate area of a trucker's operations.
Liability Insurance
If you operate a truck that makes interstate hauls, has a gross vehicle weight rating or gross combination weight rating of 10,001 pounds or higher, or hauls hazardous materials that require placarding, the FMCSA requires you to have liability insurance. If you haul freight, you need $750,000 to $5,000,000 in insurance, depending on the commodities transported. If you drive a vehicle weighing under 10,001 pounds, you need a minimum of $300,000 of insurance.
Cargo Insurance
The FMCSA requires trucking companies hauling household goods to carry $5,000 for each vehicle and $10,000 for each occurrence.
Even if you do not transport household goods, you still require cargo insurance in the trucking industry. Your clients trust you with valuable goods and want to know their products are protected in your care.
The contracts you make with clients will normally specify a minimum amount of insurance. You agree to carry that amount of insurance when you do business with them. Cargo insurance will cover items damaged on the road and items that are stolen.
General Insurance
Every business requires general insurance. If you have workers in your facility with equipment, loading trucks, and performing inspections, many things can go wrong. Although worker's compensation will cover the people you employ, it may not cover contractors or workers from other companies or potential clients visiting your facility.
Physical Damage
Physical damage insurance covers damages to a truck if your driver causes an accident. It will also pay for repairs if the truck is stolen, vandalized, or damaged by a natural disaster.
Bobtail Coverage
Drivers may use the truck assigned to them when they are not on the clock. They may take their truck home with them or take it to a motel for a night. If they have an accident while off the clock, you want to ensure your property is protected.
There are other kinds of insurance you may also want to consider. Rental reimbursement will cover vehicles you rent when a truck is being repaired. If you operate reefer trucks, you will need reefer breakdown insurance. If you have trailer interchange agreements, you will need insurance for the trailers you use for interchange.
Trucking insurance is expensive. Be sure to shop around and find the very best deals for every type of insurance you need. You can also hire a company to shop around for you. Insurance may be costly, but it is always better to be safe.
