Physical Damage insurance for your truck and trailer. The premium is based on the value of your equipment; it is usually a percentage of the value. This coverage is not required by law, but the lienholder will require it if you finance your vehicle.
It is important to ensure the actual value of your vehicle. Do not overvalue or undervalue the vehicle, as the insurance company will only pay market value at the time of loss.
Primary Auto Liability insurance is required by federal regulations. All carriers are required to have liability insurance on all rigs, including leased units. Liability insurance protects you when a third party is injured in an accident. When hiring a company, owners should ask who will pay for their insurance: the company or the drivers’ weekly settlements.
General Liability insurance protects the company from any property damage or bodily injury that may occur that does not involve a truck. Typical examples of this would include slip and fall exposures in your workplace, advertising-related exposures, and/or contractual exposures you may be involved in.
Non-Trucking Liability insurance pays for an accident when the driver/truck is not in dispatch. The coverage is sometimes referred to as deadhead coverage or bobtail liability.
Non-Owned Trailer Liability coverage protects the trailer you are pulling for someone else.
Non-Owned Trailer Physical Damage coverage ensures the trailer you are pulling for someone else in the event of a loss. Between $20,000 and $30,000 is standard for trailers.
Trailer-Interchange Liability coverage protects a trailer you are pulling when there is an interchange agreement in force, for example, with a steamship line.
Cargo Insurance covers damage/loss of freight in transit. This coverage can have many exclusions such as unattended vehicles, maximum theft limitations on targeted products such as clothing, liquor, electronics, and a whole host of others. It is essential to understand what is needed if you think you may be covered for something and you are not.
Terminal Coverage protects freight located at specific terminals in the event of a loss. There are usually time limitations associated with this coverage—for example, 72 hours maximum per specified cargo. If the goods are stored for longer than the terminal time, you will most likely want to purchase Warehouse Legal coverage.
Again, it is very important to read the policy. The amount of coverage depends on the total amount of goods stored/docked/offloaded at any one time.
Warehouse Legal coverage protects goods stored at specified locations in the event of a loss. For example, in the event of theft, fire, or sprinkler damage. The amount of coverage depends on the total amount of goods stored at the location at any given time.