Starting an independent trucking business is expensive. But, if you get a good return on your investment, it’s worth it. You can be your own boss and have a career that offers excellent earning potential. And, you have a choice to lease your trucks and services or to become an independent carrier.
Here are some trucking insurance tips to get you off on the right foot:
- If you are under permanent lease
With this arrangement, your insurance needs will be determined by your lease agreement with the carrier. Most will provide Primary Liability coverage, which covers injuries and damage to other people and property if you are at fault for an accident.
Even if your carrier covers this liability, you are still left to purchase other owner-operator insurance that includes:
- Physical damage coverage: This insurance protects your truck and trailer against collision, fire, theft, hail, windstorm, earthquake, flood, or vandalism. This coverage is likely required by the lien holder of your vehicle.
- Non-trucking liability: If you are not under dispatch—you’re getting your truck washed or taking it for repairs—this coverage provides you with limited liability protection.
- Motor truck cargo insurance: This insurance is needed to protect the carrier in case of lost freight or damaged goods. There is a maximum load limit per vehicle with this policy. And the premium may vary depending on the cargo you’re hauling.
- If you are operating under your own authority
When you are under your own authority, it’s up to you to carry all of the important commercial trucking insurance coverages. Here are four you should consider first:
- Primary liability: You pay this yourself now, and it protects you against property damages and bodily injuries to others.
- Physical damage: Pays for repairs to your rig whether it's damaged by a collision or by golf ball-sized hail stones.
- Motor truck cargo: Pays for damages to the cargo that you’re hauling in the case of fire, theft, or an accident.
- Trailer interchange insurance: Sometimes a load needs to be transferred to a different trucker to complete the delivery to the final destination. Motor carriers frequently haul trailers that are owned by other motor carriers. This move is often made to facilitate scheduling through a "trade" of trailers that are in different locations.
A trailer interchange agreement makes the motor carrier that has possession of the trailer responsible for any damage to the trailer, whether or not the trailer is attached to the tractor. This is where Trailer Interchange Insurance plays a part. It covers physical damage caused to a non-owned trailer under a trucker’s care.
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Signing on with a reputable trucking company can mitigate some of those insurance premiums, but whether you are driving under permanent lease or under your own authority, you will need to sit down with an expert on trucking insurance to help you get the best coverage at a competitive price. Contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848 to learn more about how to protect your business investment.
