Trucking Company Insurance
Getting business insurance for your trucking company is essential.
Trucking companies need to be protected against claims involving events that could foreseeably occur and cause financial loss.
Such events include a negligent driver causing a car accident while driving one of your vehicles, general employee injuries, or vendor disputes that relate to lost or damaged property.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Trucking Company
General liability insurance is — generally speaking — one of the most important insurance policies for trucking companies outside of commercial auto.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your trucking company might also benefit from other types of policies. This is because it will need to protect itself from a variety of different risks.
Additional coverage policies that can often be vital for trucking companies include:
- Commercial property coverage: This can protect your company’s property if it gets damaged, lost, or needs repairs (e.g., trucks, inventory, etc.).
- Commercial auto insurance: For a trucking company, this will likely be a legal requirement and provides coverage for company trucks or other vehicles getting damaged.
- Bobtail coverage: This is also known as non-trucking liability coverage, and covers you in the event that one of your drivers causes an accident or damages a person’s property whilst driving a company truck outside of working hours.
- Motor truck insurance: This type of coverage protects you in the event that a company truck’s cargo is damaged or lost.
Most small business owners tend to either go with a traditional insurer provider or with an online insurer when getting their business insurance.
Both come with different benefits. Online providers can be a good choice for most small business owners due to the fact that they tend to be the more affordable, accurate, and time-efficient approach.
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Cost of General Liability Insurance
On average, trucking companies in America spend between $450 - $1,000 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a trucking company to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Trucking Company
Example 1: A customer visits your establishment in order to finalize a contract but slips and falls while there. A general liability policy should cover their medical expenses and any potential legal fees.
Example 2: During a merchandise offload, an employee damages a customer’s building with the forklift. Your general liability should pay for the repairs to the building.
Example 3: To ward off thieves, you use a guard dog to protect the premises at night. While on patrol, the dog catches a person trying to climb a fence and bites them. Your general liability policy should be able to provide coverage for a lawsuit or any potential medical expenses.
Other Types of Coverage Trucking Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Auto Insurance
Since driving is the primary service your business offers, you will need to carry at least the minimum levels of commercial auto insurance, as mandated by the state. This covers business-owned vehicles when driven on public roadways.
It is recommended that trucking companies carry a policy with limits higher limits than what is mandated by the state. Additionally, pay careful attention to what exactly this coverage extends to. Most insurers require a separate policy for the trailer and cargo.
Commercial auto insurance can often be purchased as part of a business owner’s policy (BOP).
Cargo Insurance
Trucking companies are charged with ensuring that their clients’ property reaches its destination safely and on time. Cargo insurance covers loss or damage to freight while in transit.
This type of policy often comes with a number of coverage exclusions. To avoid any surprises, carefully review all policy exclusions prior to purchasing your cargo insurance.
Workers’ Compensation Insurance
Your state will likely require the business to carry workers’ compensation for each employee. It covers work-related accidents and illnesses, along with resulting medical bills, lost wages, and any resulting settlements.
Workers’ compensation is purchased as a standalone policy.
Commercial Umbrella Liability Insurance
Working on roadways and in vehicles puts your business at greater risk than other types of businesses, and expenses stemming from a covered liability loss can also be greater. A commercial umbrella liability policy extends coverage above and beyond your general liability coverage policy’s limits.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your trucking company:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Trucking Company Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes.
Due to the nature of the business, you will be required to own or lease a truck or other company vehicle in order to operate.
This will mean that you will be legally required to purchase some forms of business insurance (such as commercial auto coverage.).
Not necessarily. Certain exceptions may be written directly into your trucking company insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.