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Semi Truck Insurance

06 Feb

If you drive a big rig or semi truck, your insurance coverage is probably one of your most expensive, if not the most expensive item on your books. Veteran truckers will tell you that semi insurance is no place to cut corners. Being under-insured or not having insurance at all can be devastating financially. Before you pick up the phone or log onto the internet in search of coverage, know what kind of semi truck insurance coverage you require. If you are new the trucking business, you will want to research the types of semi truck or semi trailer insurance is required for the type of cargo you intend to transport.

Here are the questions to ask.

Does your insurance need to cover just you? Or, do you have drivers that need to be covered?
Do your business operations require you to carry worker’s compensation?
Will you need collision, theft, fire or hazardous materials coverage?
Will you need to carry insurance for primary liability or just bobtail liability?
Will you need semitruck cargo coverage?
Does the coverage include fuel bonds?

Understanding your coverage needs will lead you to the right coverage with the right provider.

General Liability

General liability coverage protects you from losses due to property damage or injuries on your property, using your services or because of a breach of contract. While coverage limits may start at $100,000, per incident coverage is generally recommended at $1,000,000. Many carriers or shippers will require that you have this type of semi truck insurance.

Worker’s Compensation

Basically, if you employ people to work for you, you must carry Worker’s Compensation coverage. If your employees are injured on the job, this coverage will protect them and you from a significant financial impact.

Collision, Fire, Theft and Hazardous Materials

If your semi is involved in a collision with another vehicle or is overturned in an accident, your collision coverage is intended to pay for the associated damages. Although specific training is required to hold a license to operate a semi truck or semi trailer, you cannot count on the skill of other drivers on the road. Driving without collision coverage is truly rolling the dice. If you drive for hire, you may be covered under the carrier’s trucking insurance. The same may be true for fire, theft and hazardous materials. However, you will want to verify that coverage and supplement it with your own if necessary. An experienced commercial truck insurance agent should be able to assist you with making this decision.

Primary Liability and Bobtail Liability

Often, primary liability coverage is provided by the carrier. If you operate your own vehicles and employ your own drivers some part of the coverage responsibility may be yours. For the period of time, you operate your truck without a trailer attached, you may require what is called Bobtail Insurance. This covers you for those times when you are returning from a delivering a load, driving to the terminal to pick up a load or operating your rig while not under dispatch.

Cargo Coverage

Motor truck cargo insurance covers whoever does the transporting against a lost or damaged load. The carrier or shipper may agree to participate in this coverage. The issue here may be an understated value or the extent to which the goods are perishable. A clear and detailed understanding between the transporter and shipper is the key to determining the right amount of coverage and on whom the responsibility lies.

Fuel Tax Bonds

If you transport fuel tanks, you will likely be required to post fuel tax bonds. Each state will have their own requirements and interstate laws may vary. The shipper and transporter both will have responsibilities when the cargo being carried is subject to fuel taxes.

Next Steps

Once you have a clear understanding of what your truck insurance needs might be it is time to shop. While lower prices may be appealing, be sure to check out the insurance company as thoroughly as possible. A low price will not seem so appealing when it is time to file a claim and little help is available from your insurance provider.