Risk Factors and Liabilities
If you own a truck for hire, manage a haulage firm, or are thinking about starting a trucking company, you should know why truckers’ insurance is required.
Long-distance truck drivers and transportation companies encounter a number of difficulties that are particular to the sector. As a result, truckers’ insurance is designed to address these issues and reduce risk.
Although your insurance options will vary depending on the trucks in your fleet, the drivers, and the items they are transporting, one thing is certain: you will all require truckers’ insurance.
The Trucking Industry’s Risk Factors and Liabilities
The following industry situations can result in liabilities, which is why trucking insurance is so important.
Harmful to your health
While driving lengthy distances, truck drivers are usually required to sit stationary for the majority of the day and night. This sedentary lifestyle, combined with the other demands of the trucking industry, can lead to a number of health issues, including:
- The inhalation of diesel fumes might cause respiratory problems.
- Driving for lengthy periods of time and over vast distances can cause considerable weariness.
- Hazardous chemical exposure
- Obesity as a result of inactivity
- Musculoskeletal injuries are more common when lifting, loading, and unloading big cargo.
- Diabetes mellitus
Truck drivers frequently have irregular sleeping habits, which can lead to concerns such as insomnia and a lack of restorative sleep. The length of time a driver can operate before taking a break is governed by federal rules. Sleep deprivation not only has significant health consequences, but it also puts truck drivers and other road users in danger when driving.
Tight Time Limits
Truck drivers are frequently pressed for time. Many of them may be tempted to hurry up as a result of this. Despite the fact that the majority of businesses claim to follow the rules, some do not. Truck driver weariness is responsible for 20-40% of truck accidents, according to reports from the National Transportation Safety Board.
These variables all contribute to truck drivers’ increased risk of accidents and injury. Truck drivers and trucking businesses also run the danger of losing or damaging cargo, being held liable for damages and injuries caused by an accident they caused, and causing damage to expensive trucks and equipment.
Truckers’ Insurance Coverage Types
Once you’ve realized the dangers of the trucking profession and the importance of having enough truckers’ insurance, you’ll want to be sure you have the correct coverage for the risks your company confronts. Here’s an overview of the most typical commercial truck insurance policies:
Auto Liability Is Your Primary Concern
Primary car liability insurance is a statutory requirement for truckers. Commercial auto insurance is required on all trucks, including leased vehicles. In the event that a third person is hurt in an accident, this liability insurance protects you.
Liability in general
General liability is distinct from car liability in that it covers damage caused by something other than a vehicle. You’ll need general liability insurance to protect yourself if an injury-causing accident occurs while employees are loading inventory, owing to another aspect of your operations, or on your property.
Bobtail coverage, commonly known as non-trucking liability, protects your truck when it’s not being used for commercial purposes. It protects the owner-operator in any case when the primary liability coverage does not apply, such as when they return home after dropping off a load. When a truck is towing a trailer or being utilized to make money by delivering property, bobtail insurance does not apply.
Damage to the body
Repairs to commercial trucks and trailers will be covered under physical damage coverage. It can be used to compensate for losses caused by:
- Natural catastrophes
Physical damage coverage will cover the cost of replacing your truck or trailer if it is damaged beyond repair. Premiums will be determined by the truck’s and your equipment’s worth.
Motorists who are uninsured or have inadequate insurance
Uninsured or underinsured motorist coverage will pay for the remaining costs if you’re hit by a driver who is uninsured (or who doesn’t have enough insurance to cover the complete cost of damage), preventing you from having to pay out of pocket.
Exchange of trailers
Trailer interchange insurance protects trailers pulled under a trailer exchange agreement from physical harm.
This is essentially non-owned trailer physical damage insurance. If your trailer is damaged by fire, theft, collision, vandalism, or explosion, you are covered.
When shopping for trucking insurance, it’s critical to make sure you have all of the coverage you require. Inadequate insurance coverage can leave you with a lot of out-of-pocket expenses and inadequate protection in the event of a collision.
Every year, you should review your trucking insurance to ensure that it continues to match the demands of your fleet.