What is Commercial Trucking Insurance?

Whether they’re delivering packages across town or cargo across the country, commercial trucking companies are exposed to a number of risks. Truck accidents occur every day, and they can cost a company tens of thousands of dollars (or more). Commercial trucking insurance helps trucking companies protect themselves from many of the potential perils that they face.

Commercial trucking insurance is similar to commercial auto insurance, but it provides coverages for trucks rather than cars. It may be used to insure everything from box trucks to 18-wheelers.

What Businesses Need Commercial Truck Insurance?

Any business that operates a truck may need commercial truck insurance. Some examples of businesses that may be required to have a commercial trucking policy include:

  • Contractors that own dump trucks
  • Companies that contract with municipalities to pick up garbage
  • Car haulers and car transport companies
  • Any business that has tractor-trailers

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What Coverages Does Commercial Truck Insurance Offer?

Commercial truck insurance policy must at least meet the minimum state insurance requirements, but many companies choose to purchase more insurance coverage than their state requires. In general, commercial trucking policies contain four main coverages:

  • Liability Coverage, for damages and injuries that a company’s driver is responsible for
  • Physical Damage Coverage, for damage to a company's truck
  • Underinsured and Uninsured Motorists Coverage, for accidents with people who don’t have adequate insurance
  • Truck Cargo Coverage, for the cargo transported in a truck
  • Unidentified Trailer Coverage, for trailers that a company doesn’t own or lease long-term (also known as Trailer Interchange Coverage)

Truck cargo coverage may cover both theft and damage of cargo while it’s in a truck. This is a coverage that’s usually unique to commercial trucking insurance policies.Protect Your Business

Are There Different Types of Cargo Coverage Available?

Almost anything a truck transports is considered cargo. Some trucks move fuel or hazardous materials, while others take products or dry goods. Even garbage in a garbage truck or another vehicle being towed by a tow truck might be cargo.

Since trucks transport many different kinds of cargo, insurers offer a number of different cargo insurance coverages. Companies should look for a policy that’s designed for the particular kind of cargo they move. 

What Factors Do Commercial Truck Insurers Consider When Calculating Premiums?

Insurers consider many different factors when they’re calculating premiums for commercial trucking policies. A few of the items they may take into account are:

  • What employees will be driving a company’s trucks
  • Whether the employees have advanced training, certifications, or licenses
  • Whether trucks are driven in construction sites (or other areas requiring hard hats)
  • How far trucks will be driven each year
  • Whether trucks will be hauling hazardous materials or heavy equipment
  • What states trucks will be driven in

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How Can Trucking Companies Get a Commercial Truck Policy?

Since commercial trucking insurance policies are often specialized based on what trucks are being incurred and many other factors, companies should work closely with an independent insurance agent when shopping around for commercial truck insurance. An agent can help a company identify what coverages it needs and search for a policy that’s well-suited for the company’s niche within the commercial trucking industry.

Meet Your Industry Specialist

Greg Kroeger

Mr. Kroeger is a Partner at World Insurance Associates LLC, and joins the team from American Truck Insurance Exchange, which he co-founded in 2009. Greg has over 20 years of commercial insurance experience, including six years at HUB International, where he was First Vice President and ten years managing his own agencies.

Prior to HUB, Mr. Kroeger was the co-owner of C.S. Nenner, Inc., an independent agency with $30 million in premiums, specializing in transportation and warehousing coverage for trucking businesses.

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