Here's What You Need To Know About Commercial Semi-Truck Insurance
As a business owner, you're legally responsible for your vehicles, the drivers, and the goods they transport. Besides the legal responsibility, auto insurance protects you from substantial financial losses due to compensation claims for damaged vehicles and goods after an accident. You can take various auto insurance for your business. However, if you have commercial trucks or similar vehicles, such as a tractor-trailer or semi-trailer, you should go for semi-truck insurance coverage. It's a type of insurance designed to cover business tracking needs and has some unique features.
Below is an overview of the specific features of semi-truck insurance.
It Often Includes Cargo Coverage
If your business has trucks, you transport goods from one place to another as part of your operations. Thus, there is always a risk that the cargo may be damaged due to an accident or stolen. Commercial semi-truck insurance often includes cargo coverage, protecting your goods in transit. That means you get compensated for lost or damaged goods during the trucking service. For example, if your truck is carrying expensive electronics for a client and gets involved in an accident and the cargo is damaged, the cargo coverage would compensate the client for the cost of the damaged items. Without this coverage, you would be responsible for covering the cost, resulting in a significant financial hit on your business.
It Has High Liability Limits
Auto insurance policies provide liability limits, i.e., the maximum amount they can pay in compensation or settlement. They set this amount by calculating the financial consequences for most clients. That means if your trucking company relies on regular auto insurance, your liability limit is similar to regular vehicles. However, when trucks get involved in an accident, it has more devastating effects than regular vehicles. That includes more severe injuries and huge losses and damages. Therefore, the level of liability becomes higher than that of standard trucks. It means you'll have to cover any amount exceeding the liability limits from your pocket. Commercial semi-truck insurance provides higher liability limits than regular auto insurance, saving you significant financial constraints when a risk occurs.
It Includes Bobtail and Non-trucking Coverage
It's always the perception that commercial auto insurance only covers vehicles during business operations. That's not the case with commercial semi-truck insurance, as it caters to bobtail and other non-trucking services. Bobtail is the part of a truck that separates from the trailer, and commercial truck insurance provides coverage even when you are driving it on its own. Non-trucking coverage applies when using the vehicle for personal reasons, such as running errands or taking it to a repair shop.
