Insurance is one of the most important things to consider when running a commercial transportation company. Commercial trucking insurance protects your business from substantial financial loss and potential legal troubles. Continue reading to learn more about commercial trucking insurance and choosing the right coverage options.
What is Commercial Transportation Insurance?
Commercial transportation insurance protects your cargo, equipment and drivers from costly mishaps. This type of trucking insurance differs from typical automotive insurance, as it offers specialized coverage on large vehicles used for shipping and transportation. Whether it's a commercial transportation company, a business that uses trucks for daily operations or independent drivers, commercial trucking insurance can help prevent significant financial losses associated with various industry-specific risks.
Importance of Commercial Trucking Insurance
Commercial transportation insurance is required by law. The Federal Motor Carrier Safety Administration has strict insurance filing requirements that businesses and drivers must comply with to gain operating authority. So, before your drivers can hit the road legally, you'll need to start with insurance coverage.
Obtaining commercial transportation insurance also provides financial peace of mind should an accident occur. Certain trucking insurance coverage can help protect your company from expensive repairs for property or physical damage. There are even policies to protect the goods you're hauling, covering costs to replace lost or damaged cargo.
Common Types of Coverage
Commercial trucking insurance costs and options can vary. Still, there are several essential coverages you'll want to consider when selecting a plan:
1. Auto Liability
Liability insurance is a vital component of commercial transportation insurance plans, as it covers bodily injury and property damage your truck might cause to other vehicles during operation. Furthermore, liability insurance is the minimum coverage required to remain legally compliant.
2. Cargo
Commercial transportation companies must deliver the goods they're hauling to make a living, which is why cargo insurance is crucial. Cargo insurance helps cover the costs for damaged, lost or stolen freight, defending your business from potentially major financial losses. This type of commercial trucking insurance also helps customers feel more confident working with your company, especially when handling high-value loads.
3. Physical Damage
Physical damage insurance protects some of your company's most valuable assets: your trucks and trailers. This type of insurance has two layers, collision and comprehensive coverage. Collision insurance focuses on damage sustained in accidents with other drivers or objects. Comprehensive insurance covers non-collision incidents, like vandalism, theft and natural disasters.
4. Trailer Interchange
If your commercial transportation company swaps trailers with other businesses, you'll want trailer interchange insurance. This insurance policy will help cover the repair costs should you damage a trailer you do not own but are using under a trailer interchange agreement.
Turn to RTS for Commercial Transportation Insurance
Choosing the right trucking insurance can seem challenging. Thankfully, RTS offers property and casualty insurance solutions for commercial transportation companies of all sizes. When you work with us, you get affordable pricing, flexible down payment options and premium financing.
Along with commercial transportation insurance, RTS offers a comprehensive suite of services to help your business maximize efficiency, profitability and growth. Count on us for competitive factoring rates, impressive savings with our fuel card, innovative trucking software and more.
If you have more questions about commercial trucking insurance or want to sign up for coverage with RTS, fill out the contact form and a representative will reach out shortly!