About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.


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.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

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.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

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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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 other types of insurance all truck driving schools should obtain:

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.

Types Of Coverage Some Truck Driving Schools May Need

In addition to the policies outlined above, there are a few other types of coverage your truck driving school may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

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 should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.