How Does Commercial Truck Insurance Work?

4 May 2016
 Categories: Business, Blog

If you plan on operating a truck or running a company that uses trucks, then you will need to become acquainted with commercial truck insurance. In some ways, truck insurance is similar to car insurance, but there are some key differences as well. To make sure that you are properly covered here is overview of how commercial truck insurance works: 

Cost - When it comes to cost, truck insurance works a lot like car insurance that you might have for yourself. This cost will go up and down depending on a variety of factors, ranging from the drivers to the type of cargo that you are carrying to the model of truck that is being used. The actual calculations can get pretty complicated and are often known only to the insurance companies, but you can safely assume that any factors that dramatically increase the risk of an accident will force you to shell out more cash for insurance.

Basic Coverage - At the bare minimum, you have basic coverage. This covers damage to the vehicle, which may or may not be enough for your needs. Basic coverage does not apply to injuries to the driver, nor does it cover the cargo of your truck. Therefore, basic coverage is sufficient in cases where you transport a lot of empty trucks or trucks with very durable cargo, but it isn't the best choice if you have trucks that tend to be full or cargo that is fragile,

Employee Coverage - You will also want to make sure that you have coverage that covers your employees. One of the biggest benefits of employee coverage is that it protects you from certain lawsuits in the future. If an employee is injured while driving one of your vehicles, then they may be able to sue you if they were not adequately covered. Not only can this force you to pay for their medical bills, but it could potentially open you up to massive punitive damages. 

Cargo Coverage - In many cases, you also want to have coverage that specifically applies to the cargo contained in your truck. While this might be an unnecessary measure if you transport a lot of loads with low value (such as shipments of soda, which has a very low cost-volume ratio), it can be absolutely invaluable if you transport fragile loads or extremely expensive loads. The type of load will influence how much you pay in premiums, with the cost rising as the value of your load increases.

Contact a local provider, such as one from Metropolitan Insurance Service Consultants, for further assistance.