Truck liability coverage protects against financial losses from truck accidents. Its coverage includes:
- Bodily injury coverage, which compensates for injuries to others.
- Property damage coverage, which pays for damages to others' property.
- A combined single limit provides a single coverage amount for bodily injury and property damage.
Bodily Injury Liability
Bodily injury liability is a critical component of vehicle insurance policies, including commercial trucks, designed to protect against financial losses resulting from injuries caused to others in an accident for which the policyholder is at fault. It covers medical expenses, lost wages, pain and suffering, and even legal defense costs if the other party sues.
This coverage contains two primary limits: per person and accident. The per-person limit is the maximum amount the insurer will pay for bodily injury to one individual. In contrast, the per-accident limit is the maximum payable for all injuries in a single incident. Ensuring adequate bodily injury liability protects the policyholder from significant financial obligations and complies with legal requirements for operating vehicles.
Property Damage Liability
Property damage liability is another aspect of vehicle insurance policies. It provides financial protection if you are responsible for an accident that damages someone else's property. This coverage is essential for truck operators because of the potential for substantial damage caused by larger vehicles.
Property damage liability covers the repair or replacement costs of the damaged property, which can include other vehicles, buildings, fences, and public infrastructure like roads and street signs. The policy specifies a maximum limit per accident, which is the upper limit the insurer will pay. Anything beyond this limit becomes the policyholder's responsibility.
This coverage is indispensable for financial protection and compliance with legal requirements, as most jurisdictions mandate minimum property damage coverage. Ensuring adequate property damage liability coverage minimizes financial risks and protects your business from the consequences of unexpected accidents.
Combined Single Limit (CSL)
Combined single-limit coverage is an insurance policy offering a unified coverage limit for bodily injury and property damage claims resulting from an accident. Unlike split limit policies, which have separate caps for bodily injury per person, bodily injury per accident, and property damage, CSL simplifies coverage with one aggregate amount.
This feature signifies that regardless of the split between bodily injury and property damage, the policyholder has a fixed amount to cover total losses. For example, if a policy has a CSL of $500,000, insurers can use it to cover any combination of injuries and property damage up to that total.
This flexibility benefits truck operators, offering comprehensive protection against varying accident-related costs. CSL is advantageous in streamlining claims processes, providing broader coverage, and reducing the risk of insufficient coverage limits in complex accidents.
Contact Us For the Right Commercial Truck Insurance!
The agents at American Insuring Group specialize in Truck Insurance and are happy to answer any of your questions. Plus, as independent agents, we compare the cost of your coverage among many competing insurance companies to ensure you get the best rate on your insurance premiums.
What you don't know can hurt your business! Call American Insuring Group today at (800) 947-1270 or (610) 775-3848, or connect with us online for answers to all your questions.
