Trucking Company Business Insurance

Every trucking company needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.

This article will cover the main types of business insurance and help you find the best trucking company insurance.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Trucking Company

The most common and comprehensive type of trucking company business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.

Some of the risks general liability insurance covers are:

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

While a trucking company isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your trucking company is sued, you could face fees totaling hundreds of thousands of dollars (or more).

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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:

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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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.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Trucking Companyes 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 trucking companies should obtain:

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.

In addition to the policies outlined above, there are a few other types of coverage your trucking company 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

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.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Trucking Company Business Insurance FAQ

Can I buy business insurance online for my trucking company?

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 trucking company?

You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my trucking company from everything?

Not necessarily. Certain exceptions may be written directly into your trucking company insurance policy, and some perils may be entirely uninsurable.

Is general liability the same as business owners?

A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.

How do I choose the best general liability insurance?

The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles. 

However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.

Do I need business insurance if I already have an LLC?

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.

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