Important Trucking Insurance Facts for New Owner-Operators to Know

23 August 2016
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Starting your own trucking business can be exciting, and it also means you need trucking insurance. Several details need to be considered when you are shopping for the insurance you need for legally operating a tractor-trailer on the road. Find out more about the various types of coverage you will need while on the road in your own tractor-trailer.

Hauling Loads for Your Trucking Business

If you get out there and gain customers on your own, the loads you carry for them will be done under your business name. Any time you haul cargo for someone under your business, you will need to make sure you have no less than commercial liability insurance coverage on your truck. Commercial auto liability covers injury to other drivers and damage to their property. In addition to commercial liability coverage, you will also need to carry a policy for cargo coverage. If you have an accident, and the cargo you were carrying for a customer ended up in the road and damaged, your cargo insurance would pay your customers for the loss.

Covering Your Truck with Collision Insurance Is a Wise Business Investment

In the event you are in an accident in your tractor-trailer, knowing any damage it suffers is covered by insurance is a good feeling. If you have invested a lot of your hard-earned money into your trucking business, the last thing you need is to lose your truck to an accident. Discussing with your insurance agent about how much collision coverage you need is important and can be one of the smartest investments you could make in your business. If you have collision coverage and have an accident, the only loss you may experience is down time while your truck is being repaired. If you do not have coverage and your truck is totaled out, you could be looking at the loss of your entire business.

Bobtail Coverage Is a Good Idea

When you drive your tractor truck without a trailer on it, you should be covered by an insurance policy described as bobtail coverage. In this way, your truck is covered even if you are using it for personal use like running to supermarket. Many owner-operators assume that because they do drive for a motor carrier or other company, the need for bobtail coverage is not applicable. However, if you are involved in an accident while driving bobtail, it will be a lot easier to file a claim if you have coverage specifically designed for the times when you may use your tractor-truck for personal reasons.

Running a successful trucking business can entail many responsibilities and details that you will need to stay on top of. Always maintaining commercial trucking insurance is a vital aspect of your trucking business remaining profitable and successful.