Types of Insurance Coverage Commercial Trucks Need

Insurance Coverage for Commercial Trucks

Trucks play an essential role in any business’s transportation and profit-making. But at the same time, the commercial truck is also more expensive in repairs or parts replacement. That makes protecting your work truck investment with commercial truck insurance.

Commercial truck insurance is a type of coverage that protects your business truck and its cargo. It can include property damage, bodily injury liability, medical payments, uninsured/underinsured motorist coverage, and comprehensive coverage.

Types of Commercial Truck Insurance Coverage

Here are the most common types of commercial truck coverage insurance policies provide:

1. Primary Auto Liability Insurance

Primary auto liability insurance covers bodily injury and property damage related to your commercial truck.

If your truck is the cause of an accident that injures or kills another person, the bodily injury (BI) part of your insurance policy may cover the costs such as medical bills, lost earnings, suffering, or even funeral costs.

On the other hand, if your commercial truck causes property damage, the property damage (PD) will sort out the related expenses. It may cover damages to other cars, lamp posts, houses, or even pets.

2. General Liability Insurance

Commercial general truck liability insurance provides coverage for claims due to injuries or property damage caused by the truck during business operations.

Commercial general liability insurance may pay your legal defense expenses if someone sues you for physical injury, property damage, or advertising harm. Your CGL (Commercial General Liability) policy can cover everything from hiring a lawyer to court-ordered judgments and settlements.

You need CGL if you satisfy the following:

  • Your business is open to the public
  • You rent or own a commercial truck
  • You deal and work closely with clients
  • Your company handles client property

3. Physical Damage Coverage

Physical damage coverage isn’t a one-stop-shop for truck insurance. Instead, your collision and comprehensive insurance policies are usually the only ones included.

It implies that this insurance can cover fire and theft damage. In this case, if your truck is broken into, it will assist pay for the repairs.

Physical damages policy also covers the following:

  • Damages by a natural disaster such as an earthquake
  • Vandalism
  • Falling objects such as collapsing buildings or hail
  • Rollovers

4. Motor Truck Cargo Insurance

Motor Truck Cargo Insurance

Motor Truck Cargo Insurance (Cargo) protects the for-hire trucker and cargos. This insurance coverage may cover the business against being held liable for cargo lost or destroyed due to events such as fire or collision.

If your cargo is dumped on a road or a river by accident, this coverage compensates for the cost of the debris removal. It also covers costs associated with avoiding additional damage to the already damaged goods.

Finally, motor truck cargo insurance can cover legal costs incurred with the defense or settlement of claims. It can also cover freight charges that the customer incurs as a result of failing to deliver cargo.

5. Rental Reimbursement Coverage

This truck insurance provides coverage if one of your trucks gets damaged and you need to rent another one temporarily.

The cost of Rental reimbursement coverage insurance varies depending on what type of coverage you need, whether full- or limited cover. However, there are no deductibles.

Rental reimbursement coverage usually includes a daily limit as well as a maximum number of days covered. For example, until your damaged truck is operational again, your policy may cover up to $25 per day for a given period such as 30 days.

6. Truck Trailer Interchange

Truck Trailer Interchange Insurance

Sometimes, you’ll need trailer interchange insurance to safeguard yourself for a client’s container or trailer.

A truck trailer interchange agreement specifies how a trailer will be transferred from one trucker to another to complete a delivery. Typically, the driver in possession of the trailer is accountable for any damages while the trailer is in their control.

Trailer Interchange insurance includes a limit and deductible. The limit refers to the maximum amount your insurer will pay, whereas the deductible is the amount you agree to pay for repairs or replacements.

7. Uninsured/Underinsured Motorists

Uninsured motorist coverage offers you protection in an accident with a negligent driver who does not have liability insurance coverage.

Underinsured motorist coverage kicks in when you collide with an at-fault driver with insufficient liability limits to pay the medical bills of any injured persons in your vehicle.

The at-fault driver’s insurance will typically cover all damages up to their truck insurance policy limitations. After they hit their limit, your underinsured motorist coverage will cover the excess amount up to the limits you choose.

8. Reefer Breakdown Coverage

The food and beverage industry contributes 5% to the country’s GDP. These numbers are projected to rise, and so is the demand for refrigerated transportation.

Not just food, even 42% of new drugs are developed and manufactured in the US. This also requires proper temperature-controlled logistics.

We can see clearly, that the demand for refrigerated trucks is on the rise, and so is the risk of damage or loss in its shipments. If you ship refrigerated items regularly, adding reefer breakdown coverage to your insurance policy will provide you with additional protection for your business.

Reefer breakdown insurance coverage will cover your monetary losses if you lose a refrigerated cargo due to mechanical failure of your truck or other unexpected events. However, it’s critical to carefully read your policy to verify whether it excludes certain items from coverage. You can get the help of your insurance agent in understanding it.

Commercial truck insurance isn’t only about insuring your vehicle against damages or injuries that might occur. There are other things covered, and you’ll need to find an experienced commercial truck insurance agency to help you weigh your options before choosing a policy that fulfills your business needs. If you need commercial truck insurance in Texas, VL 17 Insurance Agency can be your reliable policy partner. For more information, contact us or call us on (281) 803-8156 or send us a message online to speak to our insurance agent.

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