Most owner-operators understand the importance of having business insurance to protect their company. You never know what will happen when you’re out on the road, so having trucking insurance is essential to keep your business protected and legal. Along with the insurance required by law, an owner operator may choose optional insurance coverage for additional protection. You can even get discounts by purchasing several types of insurance together.
Primary liability is one of the most important insurance policies an independent trucker can have. This insurance protects your company against losses related to legal liability for property damage or bodily injury to another party. You must have liability coverage that meets the requirements set out by law and many brokers require additional liability coverage. The Federal Motor Carrier Safety Administration requires each company to have a general liability insurance policy with coverage of at least $750,000.
Commercial general liability is designed to protect your company against bodily injury and property damage claims that arise out of operations, completed operations and premises as well as personal injury liability and advertising. You can purchase commercial general liability insurance with your primary liability insurance for a discount with most companies.
Motor truck cargo is another type of trucking insurance you should purchase to protect your company. This insurance protects your company against loss if you become legally liable for damage to merchandise or goods in your custody and care in the normal course of transportation. Motor truck cargo insurance includes coverage for earned freight, refrigeration breakdown and removal of debris.
Passenger accident coverage is an important supplemental insurance to consider if you allow riders in your trucks. This insurance provides coverage in the event of accidental death or dismemberment as well as accidental medical expenses for passengers who are not co-drivers or employees. The coverage is not subject to a deductible and there is no minimum age for coverage.
Physical damage insurance covers damage or loss to your company vehicle caused by fire, theft, vandalism or collision on a basis of actual cash value. Coverage generally includes glass chip repair, downtime coverage and glass breakage. There is a deductible on the policy, but only one deductible will be applied if both the tractor and trailer are damaged.
There are several types of option insurance you may purchase with your physical damage policy. Optional downtime coverage is insurance that is designed to help an owner operator during periods of downtime due to repairs that follow a physical damage claim that was covered under your physical damage policy. Waiting periods generally apply and various coverage amounts are available.
Breakdown coverage is important because it helps you pay for necessary expenses such as labor and towing when your truck breaks down on the road.
Supplemental clean-up and towing is another insurance that can save you thousands of dollars if your truck gets into a major accident. This insurance covers towing your vehicle from the accident scene and helps you pay to clean up the mess that was made during the accident. Several coverage limits are available.
Rental reimbursement coverage provides you with a rental truck to replace your truck until it has been completely repaired after an accident that was covered under your physical damage policy. The maximum amount of coverage is $300 per day, per vehicle with a maximum of $9,000 during any policy period.
Trailer interchange coverage is a great option if your motor carrier or shipper requires your company to be responsible for any damage to a trailer that is owned by their company and pulled by your truck. Trailer interchange coverage is generally inexpensive and the company whose trailer you are pulling will let you know if they require this coverage.