If you own a commercial trucking company, you know how important it is to keep your employees and your business safe and protected. One way of protecting your investment is through commercial trucking insurance. Most states mandate a minimum level of commercial liability coverage for trucking companies, so while coverage itself isn’t a choice, you may have options on the type of coverage you purchase and the company you buy it from. 

In this post, you’ll learn about three components of effective trucking insurance that RTS offers: general commercial liability insurance, physical damage insurance and cargo coverage.

Commercial Liability Insurance for Your Trucks

In the trucking industry, "Commercial Liability Coverage" refers to an insurance policy that helps protect your trucking company from financial responsibility if your truck (or your company) causes an accident resulting in property damage or bodily injury to others.

Essentially, if someone sues you due to an accident caused by your company’s vehicle or another service your company provides, your commercial liability policy kicks in, covering costs related to third-party bodily injury, property damage and legal defense fees. 

While not every policy is the same, here’s what’s typically covered by a commercial trucking liability policy:

• Bodily injury: Covers medical bills, legal defense costs and settlements for injuries caused by your company’s trucks or truck drivers
• Property damage: Covers costs related to repairing or replacing property damaged in an accident caused by the truck
• Legal defense: Covers legal fees associated with defending against liability claims

These covered liabilities are considered a core component of any commercial truck insurance policy. In fact, commercial liability insurance for trucking companies is mandated by law in most states.

So, while commercial liability insurance protects your company against loss from legal liability resulting from bodily injury or property damage to a third party, what about protection for your vehicle?

Insurance Coverage for Physical Damage

Physical damage insurance for your commercial trucks, also known simply as “physical damage coverage,” is an important protection. This type of insurance typically refers to the policy that helps protect your trucks from damage caused by both collision and non-collision incidents. In the event of physical damage to your vehicle, physical damage insurance will help cover the cost of repairs or replacements and any other expenses that might surface. 

Think of physical damage coverage as collision and comprehensive coverage combined for a commercial truck. 

Of course, you also need to protect the loads your trucks carry and protect your company in the event of an accident. After all, unforeseen damage to cargo can cost a fortune.

That’s where cargo coverage comes into play.

What Is Cargo Coverage?

Truck cargo insurance coverage is a type of insurance that covers the goods being transported in a commercial truck. Cargo coverage protects against loss from legal liability for damage to goods or merchandise in your care and custody while these goods are in transit. It may also provide coverage for refrigeration breakdown, weather events, theft and more. 

If a load is damaged or lost, the claims process is like any other insurance policy: you can file a claim with your insurance provider to recoup the cost of the damaged goods.

Protect Your Trucks, Cargo and Business with the Right Insurance

Investing in comprehensive commercial trucking insurance isn’t just a legal necessity, it’s a safeguard for your future. From liability coverage to protect against accidents, to physical damage insurance for your fleet and cargo coverage for the valuable goods you transport, each component is a critical piece of the puzzle.

At RTS Financial, we’re dedicated to empowering trucking companies with the tools and knowledge needed to make informed decisions about insurance. When you’re ready to discuss affordable coverage for auto liability, cargo, physical damage, and more, reach out to our team for a free quote.