Commercial Truck Insurance – Industry Overview
When you get involved deeply enough in any industry, you’ll find tons of differentiation that most casual observers miss-it’s certainly possible to become an expert on just about anything.
But few businesses are as regulated and differentiated as widely as commercial trucking, and as a result the commercial truck insurance industry is just about as diverse.
Because commercial trucks are used in such different capacities-and also because commercial trucking is such a vital industry to the backbone of the American economy-it is deeply regulated by law at the Federal and state level.
On top of that, commercial standards, safety standards and demand from shippers regulate it even further.
Since safety is such a large issue, few businesses require as many insurance policies as the typical motor carrier has to own.
Here’s a list of some typical coverages in the commercial truck insurance industry and a little bit more about why they’re needed.
Primary Liability
Primary liability is similar to the policies we all hold as auto insurance carriers. It’s required coverage by law and represents the dollar amount the insurer will pay out in the case of bodily injury or property damage inflicted by a commercial truck in the event of an accident.
Comprehensive Coverage
This coverage is not required by law, but is important for many motor carriers and independents because it covers damage to their own trucks or property should any occur from an accident, or even things like fire and theft.
Bobtail Insurance
This is a policy that’s held by many independent owner/operators. Most contracted truckers are covered under their motor carrier’s truck insurance-bobtail insurance trucks for trailers is an easy and affordable policy to cover the operator’s rig or assets during all the times they are not covered under their employer’s insurance.
General Freight
The list of specific cargo insurance policies could go on for pages and pages-many state laws specify coverage amounts necessary for commonly hauled goods such as hazardous materials or fuel. A good general freight policy is an affordable option for many motor carriers who typically haul non-hazardous commercial goods. Coverage amounts typically vary from $10,000 to $100,000.
Trailer Interchange
Believe it or not, trailer interchange insurance actually covers trailers that don’t belong to you! It’s a common practice in the commercial trucking world to “finish hauls” for other truckers…these agreements usually are financially beneficial between companies because they save on fuel, labor etc. Trailer interchange covers your cooperating company’s assets when under your control.