If you are opening a small trucking company, you know that the startup costs can be overwhelming. There are a few different types of insurance recommended for trucking companies. You may think that you can save on expenses by getting the minimum amount of insurance required by law and not taking all of the different types of policies that are recommended.
However, it is very important to have as much insurance as you need to operate your company. If one of your drivers gets into an accident, it can cost millions of dollars. It is important to be properly insured. If cargo is lost or damaged, You may not be able to pay for it out of pocket. If you can’t pay for a client’s damaged property, you may end up ruining your reputation in the industry.
You can save money by bundling your insurance packages. You can click here for more information. It is a good idea to familiarize yourself with all the different types of insurance you will need before you contact an insurance company.
Liability Insurance
Being covered for an accident is extremely important for professional trucking companies. Liability insurance will pay for the medical bills of anyone that is injured if your driver causes an accident. It will also pay for damage to their vehicles. It will pay for damage you do to the road and for any damage that is done to the environment.
The Federal Motor Carrier Safety Administration requires trucks carrying hazardous cargo or those that weigh 10,001 pounds or more to have coverage of $750,000 to $5,000,000, depending on the products they are carrying. You must have $300,000 for non-hazardous cargo if your vehicle weighs under 10,001 lbs.
A trucking accident can cost millions of dollars. It is recommended that you get all the liability insurance you can afford. A truck is a very difficult vehicle to operate and even a trained and experienced person can have an accident.
General Insurance
Every business that works out of an office of some kind needs to have general insurance. General insurance will cover you if somebody is injured at your facility.
Although your employees may be covered by workers’ compensation insurance, clients and vendors who visit your company are not. If someone falls and hurts themselves at your company, you may be considered liable for their injuries. General insurance will pay for their medical bills.
Cargo Insurance
The FMCSA only requires moving companies to have cargo insurance. However, it is necessary for commercial truckers to have this important type of insurance as well.
Your clients will expect you to be able to pay for any cargo that is lost, damaged, or stolen along the way. Cargo insurance will cover you for all of these things. When you make a contract with your client, you will have a clause that will specify the amount of cargo and liability insurance that you have.
Insurance is important in all areas of your life and business is no exception. Trucking insurance will give you peace of mind and it may save your company in the long run.
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