subject: Commercial Truck Insurance - Special Policies Designed For Motor Carriers [print this page] Commercial Truck Insurance - Special Policies Designed For Motor Carriers
Motor carriers must insure their fleets. That is a stone cold fact. Freight employers must do this for two basic reasons. First of all these companies want to protect their money and assets. The wrong lawsuit can destroy a company, a driving is always a risky business. Without proper commercial truck insurance, a company opens itself up to being slammed with lawsuits in the event of any accidents which are statistically bound to happen anyways. Secondly, federal and state regulations require employers of truck drivers to be in compliance with certain insurance coverages. These requirements vary from state to state.
The amount of coverage as well as the specific type of coverage needed will vary from business to business, and driver to driver. Many specific types of truck insurance exist to provide coverage for all types of drivers and situations. All motor carriers, however, should consider the following options:
General Freight
General freight insurance covers you're a cargo for a specified dollar amount agreed upon by you and your insurance carrier. A deductible payment may also be required. Companies with large fleets of trucks all under their command need a policy like this to cover the costs associated with lost, damaged, or stolen cargo. Paying for a truckload of anything is going to be expensive. General freight insurance makes sure that no is stuck paying for all the cargo if something unfortunate happens.
General Liability
Trucking companies need general liability truck insurance to protect company employees and vehicles by covering costs associated with damages and injuries caused by other drivers. It can also help to protect against lawsuits brought on by accident victims seeking compensation from the company. This is a broad policy that generally shelters companies and employers from lawsuits involving accidents.
Primary Liability
These policies cover damage and medical costs to other drivers involved in accidents with truck drivers. This type of insurance coverage protects the driver from being held liable for the costs, hence the term "liability" coverage. Damage to the truck or truck driver is not covered without additional coverage, such as physical damage insurance.
This is also legally required by federal regulations for all commercial trucks. It is not option purchase primary liability insurance. Driving without primary liability coverage puts you and drivers around you at financial risk, because no one is going to be able to pay for damages. Unless you have a wallet the size of a bread box to pay for it all, you need primary liability coverage.
Cargo Insurance
Separate commercial truck insurance may be needed if you are a motor carrier who regularly hauls hazardous or time-sensitive goods. If you break an item in a store, you have to pay for it. If something happens to the cargo, someone is going to be held responsible and no one wants to pay for a truckload of anything.
Trailer Interchange Insurance
Many motor carriers participate in trailer interchange agreements with each other, wherein drivers swap trailers and they complete each other's hauls. This is done to save both companies money. Once the trailers are swapped, they are no longer covered under the driver's policy, and trailer interchange insurance is needed.
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