Businesses like trucking companies owning a vehicle is required by law to secure commercial trucking insurance. Note that commercial trucking insurance is not only for a trucking company but is also for independent contractors like the drivers who own the truck being rented out to deliver the goods in order to provide them protection. This kind of insurance uses the common insurance for commercial motorists which is the primary liability insurance.
Know that in the kind of primary liability insurance, the coverage is limited, because the damages of the unit is not covered in this insurance. This kind of insurance has a coverage of the other party being involved in the accident or collision based on the damages the other party has sustained. And so, in order for you not to spend a big amount of money, you have to prepare and protect yourself in the event of an accident or collision if you only have this kind of commercial trucking insurance.
If you are the contractor or the cargo services for hire, meaning you own the truck and a company hires you to deliver goods for them, you need to protect yourself by getting an insurance policy that will cover the expenses of your truck in case of an accident, including damages that would occur on your vehicle too. To cover the driver on the job or the contractor, remember that as required by law, you have to have the basic motor carrier’s insurance. A
Recommended too for all independent contractors is another section on the commercial trucking insurance which is the bobtail insurance. Be aware that only when an accident takes place where you would know the benefits of this insurance as this is a physical damage policy, and this is going to be an additional expenses on your part. However, this concept of the bobtail insurance is still appreciated by every contractor who had the experience of facing a mishap on the road, because of the fact that they save up on cash outlay during the accident itself.
It is good to know that aside from the coverage for both driver and truck, the goods carried in the truck are also covered in a commercial trucking insurance. This differentiates this insurance from a regular car insurance where the coverage is limited on the physical damages inflicted of the driver and the vehicle only.
Be aware that basing on the type of cargo the truck will be transporting, the insurance premium payment of a commercial trucking insurance is being computed. Therefore, you will be required of a higher policy price if the goods you are transporting are more sensitive. The objective of this is in consideration of the cargo which if more risky would be also more prone to damages, thus payments is appropriately distinguished and thus the requirement of a higher policy rate.