One of the most important forms of protection for any business is insurance. It is an integral element in maintaining financial security, especially in the face of unexpected events. Commercial auto insurance is especially important for anyone who uses a fleet of trucks to run their business. Whether you rent these vehicles out, or use specialized trucks for your operations, insurance is a must.
To help you understand the intricacies of commercial auto insurance coverage for truck fleets, the experts of Apex Insurance Agency have put together this guide.
The different types of trucking related insurance coverage
There are a few different kinds of insurance coverages for trucks, and some of them are as follows:
- Physical Damage Insurance is coverage for your truck and trailer. For this type of insurance, your premium is usually a percentage of the value of your equipment. This coverage is optional, but should you finance your vehicle, the lienholder will require you to buy it. You just have to make sure that your vehicle is insured for its real value.
- Primary Auto Liability insurance is a coverage required under federal regulations. Anyone who owns or leases some kind of truck needs this insurance and offers protection when a third party is injured in an accident involving your vehicle. When leasing a vehicle, it is important to ask who will be paying for the insurance.
- General Liability Insurance covers damages to property or bodily injury that does not involve a truck. This may include accidents at your place of work, such as the compound where your trucks are kept.
Protections for trailers and towed cargo
For tow trucks and other related services, some insurance policies are as follows:
- Non-Trucking Liability Insurance (also known as deadhead coverage or bobtail liability) covers accidents when the driver or truck is not under dispatch.
- Non-Owned Trailer Liability protects any trailers you are pulling or towing for someone else.
- Non-Owned Trailer Physical Damage Coverage insures you against the possible loss of trailers you are pulling or towing.
- Trailer-Interchange Liability Coverage is protection for a trailer you are pulling when there is an interchange at any point during the process, such as with a steamship line.
Insurance for specific storage concerns
Other ways that your cargo can be protected and insured are:
- Cargo Insurance protects damage or losses to cargo when in transit. This coverage is known to have many exclusions, such as unattended vehicles, maximum theft limitations on garments, liquor, electronics, and so on. Make sure you are fully aware of the terms and conditions of your agreement so you know what exactly you are covered for in the event of a mishap.
- Terminal Coverage offers protection for the freight when it is at specified terminals in the event of the loss. There are, however, time limitations to this coverage. The average is around 72 hours. If the items are stored longer than this set limitation, you might not be covered for the goods lost. That would fall under Warehouse Legal Coverage, should you decide you want it.
- Warehouse Legal Coverage is protection of goods at specified locations in case some are lost. Theft, fire, sprinkler damage, and so on are some of the ways these items can be covered. This amount of coverage you have is usually dependent on the total value of the goods stored at the location at any instance.
Final thoughts
Commercial auto insurance is a complicated subject for anyone, but with enough understanding of the different ways you can be covered, you can create the right set of protections for whatever you need—beyond what is legally required.
If you’re looking for commercial auto insurance for your fleet of trucks in Delray Beach, send us at Apex Insurance Agency a message. We give our clients the attention they need and the best deals they’re hoping for.
