Five Types Of Insurance You Need As An Independent Trucker

Posted on: 1 June 2016


If you are a new owner-operator of a semi-truck and trailer or if you're considering entering into a lease agreement with a company for a delivery or other commercial vehicle, there are several types of insurance that you'll need to carry. Unlike the insurance you carry for your personal vehicle, there are different types of truck policies depending on your type of business and how you use your truck. Below are just a few of the highlights.

1. Motor truck cargo insurance. As the name implies, this insurance covers the cargo you are carrying in your truck if it should be damaged by fire, collision, being dumped on the roadway or other similar incidents. Like personal insurance, this coverage has a deductible. The higher the deductible you choose, the lower the premium. This type of coverage generally excludes items owned by the insured, items of high value like art and jewelry, and items like cigarettes, alcohol and pharmaceuticals.

2. Motor truck general liability insurance. General liability insurance kicks in when there is damage when your truck isn't moving. This includes things like damage from delivering your cargo to the wrong address, libel or slander complaints and actions of you or one of your drivers while representing the company

3. Bobtail insurance. If you ever use your truck for non-business purposes, then you need bobtail insurance. This provides coverage for damage and liability in the event of an accident while not on a business run.

4. Commercial liability insurance. This type of policy protects you if you or one of your drivers is in an accident and injures a person or damages property.

5. Physical damage insurance. Physical damage insurance is for commercial vehicles what collision and comprehensive insurance is for your private vehicle. This type of insurance gives your 24-hour collision coverage as well as coverage should your vehicle be damaged due to fire, hail, a falling tree or other acts of nature. This type of policy usually also includes the cost of towing the truck to a service location as well as storage costs while the truck is waiting to be fixed. Like truck cargo insurance, this type of insurance has a deductible associated with it. The higher the deductible you accept, the lower the premium.

Owning your first rig is an exciting time. Make sure that you and your business are properly protected by investing in all of the types of insurance you'll need, from commercial liability to cargo insurance. For more information, contact companies like Metropolitan Insurance Service Consultants.