Trucking operation insurance is essential for any business that relies heavily on trucks and cargo vehicles. Companies specializing in Denver Trucking Insurance can be especially useful for coverage against potential liabilities. Read on to find out what you need to know about trucking operation insurance.
Common types of trucking operation insurance
Before you commit to an insurance plan for your trucking business, it would be a good idea to know the different types of coverage available. Here are the most common types of insurance that would be beneficial for a trucking company:
- Truckers’ general liability coverage. This type of insurance covers drivers’ actions when operating vehicles on premises owned by someone other than the employer. This would include truck stops and loading docks. Truckers’ general liability coverage also covers delivery errors made by the driver.
- Primary liability coverage. Unlike most other types of insurance, primary liability coverage doesn’t cover the truck itself. Instead, it provides coverage for damage that the operator causes to others.
- Physical damage coverage. This covers the repair or replacement of the truck or related equipment arising from theft or an accident.
- Non-trucking liability coverage. This covers damage or injury caused to others while the truck isn’t dispatched from the leasing company.
- Motor truck cargo coverage. This provides comprehensive coverage that protects you regardless of the risk. With this type of insurance policy, you are covered for stolen goods, breakdown of refrigeration equipment, wet loads, and more.
- Trailer interchange. This policy covers trailers that aren’t owned by the operator, used as part of a trailer interchange agreement.
- Medical payments. This provides coverage for medical bills for injuries that you or a passenger may incur while operating the truck or riding in it. The actual amount of coverage will vary from state to state.
- Uninsured/underinsured motorists. This covers you for damage to your vehicle caused by someone who doesn’t have liability coverage.
How much will trucking operation insurance cost you?
For most business owners, the most pressing concern is how much trucking operation insurance will cost. The amount will vary depending on the extent of the coverage and various other factors.
Most owner-operators can expect to pay anywhere from $8,000 to $14,000 in insurance premiums annually. But this is only a ballpark figure at best. The actual amount could cost a lot more after figuring in all the other factors.
In order to ensure that you don’t pay any more than you have to, it is essential to know how to compare insurance prices. Although it is tempting to go for the cheapest offer that comes your way, this may not necessarily give you the type and extent of coverage you need.
Always look into the total potential costs when figuring out which trucking operation insurance plan provides the best value. In particular, you will have to consider the deductibles that will be included in the policy.
What you need to know about deductibles
Deductibles are what you have to pay for apart from the amount that your insurance company will cover. Let’s say you have a $1,000 deductible and are liable for $5,000. Under the terms of such a plan, you will have to pay $1,000, while the insurance firm pays the $4,000 remaining from the bill.
Now keep in mind that this may vary depending on the terms of the plan. While one insurance company may offer you lower premiums, the plan may have separate deductibles for the truck, the trailer, and the cargo. If you have an accident, you may have to pay $3,000 before your insurance company steps in to pay the rest.
On the other hand, a plan that has a $1,000 deductible total may require you to pay only $1,000 before the plan assumes the rest. This particular plan could, therefore, provide better value even if the premium is initially higher.
Questions to ask your insurance company
As with any other service, asking the right questions will ensure that you get the best possible deal for your money. Here are some of the most important questions to ask your insurance agent about trucking operation insurance:
- What is the rating of your insurance company? This will give you a good idea of the company’s ability to meet its insurance obligations.
- Is your policy unlimited? An unlimited policy covers you for a broader range of hazards and losses.
- What cargo form types does the policy include? Depending on your needs, you may prefer a broad form or specified peril cargo form.
These are only some of the essential questions you need to ask of your insurance agent. You need to rely on your insurance firm to help you identify risks and manage them effectively. Choose your insurance company wisely, and you stand to gain the most benefits from your trucking operation insurance.
About Mountainside Insurance Management
Mountainside Insurance Management, LLC is a multi-state insurance brokerage and management specialist. We are an independent brokerage and work with over 150 A+ carriers to secure comprehensive coverage for our clients. Our brokerage is committed to providing the highest quality insurance and risk management services at the most competitive premiums with hands-on services tailored to our customers’ needs. For more information about reducing your risk, contact us today at (720) 800-9495.