THURSDAY, JULY 30, 2020
All commercial truckers need trucking insurance. However, based on the ownership of the truck, your coverage needs might vary. Truckers and their employers have different relationships with each other. They also have different ownership rights and responsibilities over trucks. They will therefore have to structure their insurance coverage to address their unique risks. Here’s how to think about the coverage you need.
Commercial truckers might operate in three primary ways:
Motor carriers are businesses that provide trucking services. The business might own the trucks and employ the drivers. The trucks might transport cargo belonging to a variety of clients, however.
A private carrier business owns trucks that it uses to haul its own goods. It might use its own drivers to haul these goods for deliveries or other purposes.
Someone who is an independent owner operator owns the truck they drive. They offer for-hire services and are not bound to a single trucking company.
In some cases, motor carriers hire independent owner operators under a leasing agreement. The two parties will have to work together to achieve the right coverage balance. In some cases, motor carriers provide a degree of insurance to their leased truckers. However, the trucker might also need separate coverage.
Insuring Trucks Appropriately
When putting together your trucking insurance, you might need several types of protection. Your final decision might depend on your relationship to the business and trucks:
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Liability Insurance: When the trucker is at-fault for accidents, this coverage will help them pay for the bodily injuries or property damage of third parties who were not passengers in the truck.
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If you do not own a truck but operate one for business, then you need non-owned/hired liability insurance. Coverage applies to a business’s liabilities if a trucker operates under its authority.
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Physical Damage Insurance: Truck owners will need to buy this coverage. It will help them pay to repair or replace the truck following an accident.
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Uninsured Motorist Coverage: A truck owner might not be at fault for an accident. However, the driver that was at fault might not have liability insurance. If this is the case, then this coverage will help the trucker cover their losses using their own policy.
In simple terms, if you own the truck, then you will likely need physical damage insurance. Anyone who has a truck operating under their authority will need certain types of liability coverage. Work with your trucking insurance agent to determine your own coverage needs.
When choosing the right policy, you must buy all coverage required by state and federal trucking laws. However, by buying optional coverage, too, truckers can obtain more beneficial protection.
ALSO READ: Why Is Trucking Insurance So Expensive?
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