Basic Commercial Insurance Definitions

No matter what sector of the commercial trucking insurance industry you are involved in, you need to be aware of the many different types of insurance coverage that are offered.  Before you begin seeking out a policy and provider, take stock of what your needs are and what your industry requires of you.

First of all, trucking insurance coverage needs will vary depending on whether you are an independent owner/operator or a large-scale motor carrier.  Motor carriers will need to cover a much larger fleet of vehicles and trailers, a wide variety of cargo, and provide accident compensation for their drivers.  Independents need to mostly concern themselves with covering the cost of damages to their personal property and providing themselves with liability coverage when not under contract.

Lets start by looking in detail at some truck insurance coverage options that motor carriers should consider:

General Liability

General liability insurance is a commercial insurance policy to protect company employees and vehicles by covering costs associated with damages and injuries caused by other drivers and provide motor carriers with protection from lawsuits.

Trucking Liability Insurance

Trucking liability insurance policies cover damage and medical costs to other drivers involved in accidents with truck drivers.  Motor carriers are required to provide this type of commercial insurance coverage to their employees and the independents they contract.

Freight Insurance

This type of policy covers entire lines of cargo (standard goods) up to a certain predetermined amount and may require a deductible. 

Independents also have coverage options to consider:

Non-Trucking Liability

Non trucking liability, or bobtail insurance, is truck insurance coverage that protects drivers when they are not actively in the employ of a motor carrier and need supplemental liability coverage.

Physical Damage Insurance

Physical damage insurance covers damages sustained to your own property, such as your truck, regardless of fault in an accident.  It also covers things such as fires, theft, and vandalism.

More Related Trucking Insurance Articles:
To find out some more info on related trucking insurance topics, visit our main truck insurance articles page or visit other pieces such as: Truck Insurance: Bobtail Insurance and Non-Trucking Liability or Commercial Truck Insurance: Trucking Liability Insurance Isn’t Always Enough