As a truck driver or trucking company, protecting your valuable assets is of utmost importance. Accidents and unforeseen incidents can significantly damage your trucks, trailers, cargo, and more. That's why having the right physical damage insurance is essential.
What Is Physical Damage Insurance?
Physical damage insurance can provide essential financial protection for a trucking company or truck driver in the event of damage to insured property resulting from accidents or incidents. To adequately protect against potential risks that may cause physical damage to trucks, trailers, cargo, customer property, or company property, it may be necessary to obtain multiple policies.
What Is Covered by Physical Damage Insurance?
To ensure comprehensive protection against potential physical damage risks, your trucking company's insurance agent may recommend specific types of coverage tailored to your business's needs. These insurance options are designed to provide robust protection against unforeseen incidents. Based on your company's exposure to risk and other pertinent details, your agent may suggest the following insurance policies to safeguard against physical damage:
- Collision coverage helps pay to repair or replace the tractor if it sustains damage in an accident by overturning or colliding with an object or vehicle.
- Comprehensive coverage helps pay to repair or replace the tractor in the event of theft, vandalism or weather damage.
Collision and comprehensive insurance coverage serve a different purpose compared to liability insurance. While liability insurance covers third-party injuries and property damage caused by the truck driver, collision and comprehensive insurance focus on protecting the truck itself. As per federal and state laws, truck drivers are required to carry minimum amounts of public liability insurance and commercial auto insurance liability.
In addition to these mandatory coverages, other types of insurance are available to provide protection for tractor trailers. These include:
- Motor truck cargo insurance helps pay for damage to cargo hauled by the insured trucking company or truck driver.
- Bobtail insurance helps cover the costs of theft or damages to the tractor when a trailer is not attached.
- Non-trucking liability coverage endorsement pays for third-party property damage or bodily injury when the driver is using the truck off dispatch whether or not a trailer is attached.
- General liability insurance is crucial for trucking companies. It helps pay for third-party injuries or property damage that occurs on company property and in or around the company’s truck.
- Umbrella insurance helps pay for liability claims for third-party property damage or bodily injuries that exceed the limits of the trucking company’s other liability policies.
How to Get Physical Damage Insurance
Having the right trucking insurance is essential to proper risk mitigation. Contact Reynolds Insurance Services Inc today to learn more about your physical damage insurance options.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.