Essential Types of Trucking Insurance Every Driver Needs
Trucking insurance protects your livelihood, cargo, and business from unexpected disasters. Without proper coverage, a single accident could bankrupt your operation or leave you personally liable for millions in damages. Insura Insurance Agency helps truckers nationwide understand their coverage options and secure comprehensive protection.
This guide breaks down the five essential types of trucking insurance every commercial driver should carry, explaining what each covers and why you need it.
Primary Liability Insurance
Primary liability insurance covers bodily injury and property damage you cause to others while operating your commercial vehicle. Federal law requires all commercial trucks to carry minimum liability coverage, with amounts varying by cargo type and vehicle weight.
Interstate carriers typically need $750,000 to $1 million in primary liability coverage, while hazardous materials haulers must carry $5 million. This insurance pays for medical bills, vehicle repairs, and legal fees when you’re at fault in an accident.
Without adequate truck insurance and liability coverage, you’ll pay these costs out of pocket—potentially bankrupting your business and putting personal assets at risk.
Physical Damage Coverage
Physical damage insurance protects your truck and trailer from collision, theft, vandalism, and weather-related damage. This coverage includes two main components:
Collision coverage pays for repairs when your truck hits another vehicle, object, or rolls over. Comprehensive coverage handles non-collision incidents like theft, fire, hail damage, or vandalism.
Lenders require physical damage coverage if you finance or lease your truck. Even if you own your vehicle outright, this insurance prevents you from absorbing costly repair bills that could sideline your business for weeks.
Cargo Insurance
Cargo insurance protects the freight you’re hauling from damage, theft, or loss during transport. Standard trucking policies don’t cover cargo—you need separate coverage for the goods in your trailer.
Coverage amounts typically range from $10,000 to $100,000 per load, depending on the value of freight you haul. High-value electronics, pharmaceuticals, or specialty goods may require higher limits.
Many shippers require proof of cargo insurance before allowing you to haul their freight. Without it, you’ll face severe restrictions on available loads and potential lawsuits if cargo gets damaged.
Non-Trucking Liability Insurance
Non-trucking liability (also called bobtail insurance) covers you when operating your truck without a trailer or outside your normal business duties. This includes driving to fuel up, heading home after delivering a load, or using your truck for personal errands.
Your primary liability policy only applies when you’re under dispatch or carrying freight. Non-trucking liability fills the gap, protecting you during these “deadhead” miles when you’re not technically working but still driving a commercial vehicle.
This coverage typically costs less than $500 annually but provides crucial protection during off-duty driving.
General Liability Insurance
General liability insurance protects your trucking business from non-vehicle-related claims. This coverage handles situations like:
- Slip and fall accidents at your business location
- Property damage while loading or unloading freight
- Personal injury claims from business operations
- Advertising injury or copyright infringement allegations
While not legally required, general liability insurance protects your business assets from lawsuits unrelated to vehicle accidents. Many customers and brokers require proof of general liability before working with new carriers.
Protect Your Trucking Business Today
Understanding these five insurance types helps you make informed decisions about protecting your trucking operation. Each coverage serves a specific purpose, and gaps in protection could expose you to financial ruin.
Insura Insurance Agency specializes in trucking insurance and can help you build a comprehensive coverage package that fits your specific needs and budget. Don’t risk your business on inadequate coverage—contact our trucking insurance experts today to secure the protection you need.
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