Getting business insurance for your truck driving school is essential.
Truck driving schools need to be protected against claims involving things that could reasonably occur and cause them financial harm, such as collisions, professional negligence claims, and vehicle damage-related disputes.
For example, a third-party driver damages a company truck, or a student claims that one of your instructors’ advice led them to cause an accident on the road.
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 Truck Driving School
General liability insurance is — generally speaking — one of the most important insurance policies for truck driving schools.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, your truck driving school will likely benefit from purchasing additional types of coverage; this is because general liability may not cover all of the risks that you will be privy to.
Additional coverage policies that you may want to consider include:
- Commercial auto
- Errors and omissions
- Business income
You will also need to decide what type of insurer you will get your coverage from. There are two options available for small businesses:
- Traditional brick-and-mortar insurers (e.g., The Hartford, Hiscox, etc.)
- Online insurers (e.g., Tivly, Next Insurance, etc.).
Generally speaking, we recommend the second option for most small business owners due to the fact that it can be significantly more affordable while still offering personalized coverage.
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Cost of General Liability Insurance
On average, truck driving schools 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 truck driving school to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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 Truck Driving School
Example 1: When walking into one of your classrooms, a student slips on spilled water that was never properly cleaned. General liability insurance would cover the costs of their medical injuries.
Example 2: A student decides to sue your company because they feel your classes didn’t adequately prepare them to find a job. General liability insurance would pay for the costs to fight the suit and defend your reputation.
Example 3: A trade school in another part of the state has a similar logo to yours. They feel they’re losing time and productivity because of your company and claim trademark infringement. General liability insurance would cover the costs to either keep your logo or settle the claim without going to court.
Other Types of Coverage Truck Driving Schools 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 Property Insurance
If you own the grounds used for your classes, you’ll need commercial property insurance to cover damages against bad weather, criminal activity, and fire. Commercial policies vary by location and business, but a truck driving school can typically use it to pay for its equipment and supplies in addition to covering the repairs of the physical structure itself.
Professional Liability Insurance
Because teachers provide both general instruction and specific guidance to students, professional liability insurance is available in case an instructor omits information or accidentally provides false information to a student. For example, if a former student can prove they lost their job due to an incorrect technique they learned in class, they could potentially sue the school for loss of income. Professional liability insurance would cover the costs of the suit.
Workers’ Compensation Insurance
All businesses with employees are required to carry workers’ compensation insurance in case of accident or injury on the job. This policy covers sudden incidents (whether in a vehicle or not), and also chronic conditions that may develop after years of repetitive motions.
Commercial Auto Insurance
All truck schools will need commercial auto insurance to protect the vehicles, property, and people who may be affected by an accident. Schools will need to discuss their specific circumstances with their insurance company to ensure the policy covers a wide variety of incidents.
Commercial Umbrella Liability Insurance
Umbrella insurance is designed to cover your business in the case of large or drawn-out lawsuits that exceed the limits of your general liability policy. For example, if a libel lawsuit costs you a total of $250,000 to fight and your general policy only covers $150,000, umbrella insurance can be applied to cover the leftover funds.
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 truck driving school:
- 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.
Truck Driving School Business Insurance FAQ
Can I buy business insurance online for my truck driving school?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a truck driving school?
Yes. This is because you will not be able to predict when you will need to use your business insurance, and not having it when you need it can end up costing you significantly more money down the line.
For a truck driving school, you will also likely be legally mandated to purchase commercial auto coverage per the state’s requirements.
Will insurance protect my truck driving school from everything?
Not necessarily. Certain exceptions may be written directly into your truck driving school insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
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.