Commercial Trucking Insurance: What you need to know
Key Coverages in Commercial Trucking Insurance
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Primary Liability Insurance
Primary liability is the cornerstone of your commercial trucking insurance. This coverage is federally mandated and protects your business if your truck causes injury or damage to others on the road. It ensures that you can cover legal claims, medical expenses, or property damage resulting from an accident where your driver is at fault. -
Cargo Insurance
Cargo insurance covers the freight your trucks transport. Whether your cargo is damaged in a collision, theft, or natural disaster, this policy will help recover the losses. With cargo theft on the rise—costing businesses billions annually—cargo insurance is essential to protect your assets. -
Physical Damage Insurance
Accidents happen, and when they do, physical damage insurance helps cover the cost of repairs or the replacement of your truck. This coverage applies whether your vehicle is damaged in a collision, due to vandalism, or in extreme weather events. -
General Liability Insurance
Also known as Business Owner’s Policy (BOP), general liability insurance is essential for protecting your business from non-driving-related incidents, such as slips and falls at your office or during loading and unloading. It also covers damage to property and advertising liability. -
Fleet Insurance
If you operate more than a few trucks, fleet insurance can simplify your coverage. Rather than insuring each vehicle individually, a fleet policy provides blanket protection for all your trucks under one comprehensive plan, saving time and potentially reducing premiums. -
Non-Trucking Liability Insurance
This policy, also known as “bobtail insurance,” covers your trucks when they’re not being used for business purposes. For example, when a driver is off-duty but still using the truck, non-trucking liability offers coverage that standard policies may not include.
Why You Need Truck Insurance
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Compliance with Federal and State Regulations
Federal law requires commercial trucks to carry minimum levels of insurance coverage. In the U.S., the Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability coverage of $750,000 for trucks weighing over 10,000 pounds that transport non-hazardous goods. For those transporting hazardous materials, the minimum can rise to $5 million. Additionally, many states have their own insurance requirements, and failing to meet these can result in fines, suspension of your license, or the revocation of your authority to operate. -
Protection Against Liability
Trucking companies face significant liability risks on the road. Accidents involving large commercial trucks can result in devastating injuries or fatalities, with average costs exceeding $200,000 for injury-related accidents and up to $3 million for fatal accidents. Without proper liability coverage, your business could be liable for these costs, leading to financial ruin. -
Cargo and Asset Protection
Whether you’re hauling high-value electronics, perishable goods, or general freight, cargo damage or theft can lead to substantial financial losses. Cargo insurance protects your load from these risks, while physical damage coverage ensures your vehicles are repaired quickly, minimizing costly downtime. -
Employee and Third-Party Protection
Commercial trucking insurance also provides vital protection for your employees and third parties. Medical payments coverage helps cover medical expenses for drivers injured in accidents, while liability coverage ensures that third parties who suffer injuries or damage due to your trucks are compensated. -
Financial Stability and Risk Management
The trucking industry operates on tight margins, and unexpected expenses can cripple your cash flow. Comprehensive commercial trucking insurance mitigates these risks by transferring the financial burden of accidents, claims, or losses to your insurance provider.
Common Claims in Commercial Trucking Insurance
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Truck Accidents: The majority of claims in the trucking industry involve road accidents. Commercial trucks are responsible for around 13% of all U.S. vehicle accidents, many of which lead to significant injuries and property damage.
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Cargo Theft: Cargo theft continues to rise, especially for high-value goods. The average cost of a cargo theft incident is $142,000, making cargo insurance a crucial element of your coverage plan.
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Equipment Damage: Physical damage to trucks due to accidents or vandalism can result in hefty repair bills. Physical damage coverage ensures your trucks are back on the road quickly.
Build Your Commercial Trucking Insurance Policy with Experts
Monarca Trucking Insurance Services Inc. has years of experience providing comprehensive coverage tailored to the needs of trucking companies. Whether you’re an owner-operator or managing a large fleet, we have the expertise and insurance solutions to keep your business fully protected.
Get a Free Quote Today
Contact Monarca Trucking Insurance Services Inc. to learn more about our commercial trucking insurance options and get a customized quote. With our tailored insurance solutions, you’ll have peace of mind knowing that your trucks, cargo, and business are protected.