Extreme weather, inflation, traffic, road conditions, and sleep, there is a limit to how much truck drivers can control while hauling cargo from one stop to another. Amid all the moving, risks hardly leave their side. But one thing is entirely in their hands, i.e., insurance. Having progressive commercial truck insurance provides financial protection to trucking companies and drivers against any physical or third party damages caused during trucking operations.
Benefits of Trucking Liability Insurance
The benefits of trucking liability insurance vary depending on the type of coverage and trucking operation you do. Therefore, finding adequate liability insurance is a must to avoid paying a hefty sum for lawsuits or settlements in case of an accident.
Nevertheless, below are some benefits trucking companies, and drivers can expect from their trucking insurance:
- It provides Financial Coverage regarding settlement and claims if trucking operations cause physical or property damage.
- For US operations, trucking companies must obtain coverage that complies with the regulations of the department of transportation. Doing so would allow your business to operate following the law.
- Ensures the safety of drivers and trucking companies by reducing the risk of accidents and liability claims.
Commercial truck insurance helps you comply with state regulations and conduct safe operations without worrying about legal battles and claims.
5 Factors That Affect the Cost of a Trucking Liability Insurance
Undoubtedly, getting insurance is a must; however, five factors can shoot up the cost of trucking liability insurance. Before you buy any insurance, it is always suggested to discuss the following points with your insurance agency:
A trucking company with a history of repetitive or high-value claims may be seen as a higher risk and will have to pay a higher insurance premium.
Some states in the US may have higher insurance requirements or a greater possibility of accidents. If you want to operate in any of these states, you need to pay more for trucking liability coverage: Florida and Texas.
Type of Trucking Operation
Various trucking operations, such as long-haul, interstate, and intrastate deliveries, keep the global supply chain moving. A trucking company involved in long-distance operations at higher speeds may be seen as a case of higher risk, and therefore, the coverage premium may be higher.
Drivers with a history of accidents or traffic violations may be considered a more significant risk; therefore, the insurance premium will cost more. Consequently, hiring professional truck drivers with good driving records is crucial.
A variety of vehicles used for trucking operations, such as tractor-trailers or delivery trucks, can also affect the price of trucking liability insurance. The insurance cost will depend on the type of fleet you use for hauling loads.
Having prior information before spending money on any coverage plan helps you decide what works best for your trucking business. Apart from these, there are more factors to consider, which vary from company to company. Therefore, if you are searching for suitable liability insurance for a trucking company, identify your needs first and then consult a renowned insurance agency with your questions. Also, stay updated with the trends.
In short, always make an informed decision that suits your trucking business’s needs in the long run.