Several factors determine the type of commercial transportation insurance you need for your business. For instance, whether you tow personal vehicles, haul cargo, or travel over state lines. In addition, your commercial transportation insurance coverage applies to several areas based on your policy, as discussed below.
The most basic form of commercial transportation insurance coverage is liability insurance. When you cause an accident, liability commercial insurance covers the other parties' injuries or property damage. You may also receive coverage for legal defense costs if the accident's victims sue you.
2. Motor Truck General Liability
This coverage includes property damage or injuries caused by business activities that aren't directly related to your truck's operation. For example:
Slander and Libel
Fire due to insured mistake
Slip and Fall Accidents
Erroneous property delivery that results in damages
3. Physical Damage
Physical commercial transportation insurance coverage protects your vehicles from collision, fire, and theft. Physical coverage includes collision insurance and comprehensive insurance. Collision insurance covers repairs or replacements if your auto rolls, overturns, or collides with an object. On the flip side, comprehensive insurance covers damages caused by factors other than collisions, such as theft and fire.
4. Cargo Insurance/Motor Truck Cargo
Cargo insurance covers the cost of stolen or damaged goods hauled in your commercial fleet. For instance, if your load is dumped on a waterway, cargo insurance covers the removal costs for debris. The policy may also include freight charges and costs to prevent further damage to the goods.
5. Uninsured Motorist Coverage
This policy pays for injuries and damages caused by a hit-and-run or uninsured driver. The coverage also applies when the at-fault driver doesn't have sufficient insurance to pay for all expenses. Covered expenses include medical bills, pain and agony, and lost wages. Uninsured motorist coverage could be three separate covers bundled in one based on your state. The three are:
Underinsured motorist insurance
Uninsured motorist insurance
Uninsured motorist property damage insurance
6. Med pay
Also known as personal injury protection or no-fault, med commercial transportation insurance covers medical expenses caused by an accident. The policy covers you, passengers, and any other injured parties regardless of who is at fault. For instance, if a janitor drives your cleaning company's truck into a client's office, med pay covers for medical costs of anyone injured.
7. Garagekeepers Legal Liability
Also known as storage location insurance, this commercial transportation insurance policy covers you if you operate service stations or offer towing services. You get coverage for your customer's vehicles when you store or service the vehicles. The policy's damages include vandalism, fire, collision, and theft.
You need commercial transportation insurance coverage if you regularly use your vehicle for work-related activities. Because insurance trends and standards change with time, you should review your yearly policy. Also, you will likely need to upgrade your commercial transportation insurance policy when your business grows.