Short Course on Policies – Getting to Square 1

Be Informed about Commercial Trucking Insurance

A commercial trucking insurance is that type of insurance that a business like trucking company should secure if it owns a vehicle as mandated by the law. Not only is a trucking company would benefit from a commercial trucking insurance, but also those independent contractors who own the truck being hired in the delivery of goods, for their own protection too. This kind of insurance uses the common insurance for commercial motorists which is the primary liability insurance.

Know that in the kind of primary liability insurance, the coverage is limited, because the damages of the unit is not covered in this insurance. The coverage of this type of insurance limits to the damages sustained by the other party involved in the incident or collision and thus is limited. By having only this type of commercial trucking insurance, you need to prepare and protect yourself in the event of a collision or accident encounter, because it will be very expensive on your side should you encounter this unfortunate incidents.

The party who is the contractor or the one hired for cargo services by a company to deliver cargo for them, being the owner of the truck, should protect itself by getting an insurance policy that has the coverage of the expenses of its truck in case of a collision plus damages during the incident on its vehicle too. While the contractor or driver is on the job, be reminded that you should have the basic motor carrier’s insurance as required by law to cover yourself. A

Recommended too for all independent contractors is another section on the commercial trucking insurance which is the bobtail insurance. Note that the benefit of this insurance will only be known when an incident happens, thus is viewed as a physical damage policy and thus is an additional expenses on your side. Even with this condition, a contractor who faced a mishap on the road can claim that this insurance of having a bobtail insurance is still advantageous since it save them on cash outlay during the unfortunate incident.

In a commercial trucking insurance, the coverage is not only for both driver and truck but also including the goods carried by the truck. This differentiates this insurance from a regular car insurance where the coverage is limited on the physical damages inflicted of the driver and the vehicle only.

Note that the payment of the insurance premium in a commercial trucking insurance is computed based on the kind of cargo the truck will be transporting. This means, if the goods are sensitive then the policy price is higher. This is in order to distinguish appropriately the payments, especially if you have a risky cargo, the damage is more likely to happen, therefore the requirement of a higher policy rate.

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