02/09/2022
COMMERCIAL TRUCKING INSURANCE â THE BASICS
Understanding the lingo and the basics of commercial truck insurance, will help considerably when planning and organizing coverage with your insurance broker.
Commercial trucking insurance policies basically cover damage and loss in several situations: damage to the semi-truck, trailer, load/cargo, other vehicles, other semis, trailers, and cargo, and property damage.
Liability: covers any damage to other parties involved in an incident. Example: a trucker backing up to a loading dock, smashes the lift on the loading dockâŚ. the shipper would be paid for repairs under the truckerâs policy.
Cargo insurance: covers the costs involved to damaged or stolen goods hauled in a trailer. Example: If a trucker had a load of fragile electronics and took the corners hard when driver and destroyed the goods on board, the damage would be covered. Also, if cargo is stolen, cargo insurance would be effective.
Physical damage coverage: Damage to equipment from various causes, will be covered if physical coverage is purchased. Example: Equipment body damage from an accident, weather, another vehicle or person causing damage to the equipment
Bob tail insurance: Highly recommended for all commercial trucks, especially owner operators, who take their big rigs home, when not on the road.
Re**er Insurance: Extra coverage is available for a minimal cost, to coverage damage done by re**er motor failure, but not re**er motor repairs. (Re**er unit must be properly maintained for coverage to be effective)
PAYING THE PREMIUMS
The cost of a policy for commercial trucking insurance, whether for a trucking company or an owner-operator, can be staggering!
But, relax. Itâs possible to finance the payments over a series of months, through a finance company that your insurance broker can recommend.
These companies specialize in commercial truck insurance premium financing.
The finance company adds on an interest charge to the policy cost, and structures a payment plan for the independent trucker or trucking company.
Some require a down payment of between 10-20% of the total cost of the policy, and then 10 equal monthly installments. Some will divide the total cost of the policy into 12 equal payments.
Either way, be sure youâve budgeted to ensure that youâre prepared for a healthy cash downstroke!
Knowing what and how much coverage you need, is something a reputable commercial insurance broker can help you with. Youâll need someone who knows their stuff and someone you can trust.
Theyâll design a commercial trucking insurance plan suited to your needs.
Source: https://www.smart-trucking.com/commercial-trucking-insurance/
