Commercial truck insurance is an essential policy that provides coverage to vehicles that are used in a business capacity. It is necessary for all types of businesses, including sole proprietorships and fleets of freight vehicles.
How Commercial Truck Insurance Works
Commercial truck insurance is not very different from an individual auto insurance policy. In most states, minimum insurance requirements are similar for both passenger cars and commercial vehicles. Commercial auto insurance provides liability coverage in the event of an accident, including collision, repair, personal injury and uninsured motorist claims.
Coverage can be adjusted and tailored to fit the individual needs of your business. For example, your commercial truck might need liability insurance, uninsured motorist coverage or no-fault car insurance, depending on the state in which your contracting company operates.
Why you need it
If you operate a truck for any type of business-related purpose, you will need commercial auto insurance. Whether you are a sole proprietor, subcontractor or general contractor, you might carry commercial coverage if your vehicle is:
- Registered or titled to a business, corporation or partnership
- Rented or leased by others
- Equipped with snowplowing equipment, bathrooms, altered suspensions, hydraulic lifts
- Consistently driven by owner(s) or employees for both business and personal use
Basic commercial truck insurance is made up of collision coverage and comprehensive insurance.
Collision will cover the costs of damage to your vehicle and to another vehicle from an accident in which you were at fault.
Comprehensive insurance is similar to regular motor vehicle insurance. It covers the cost of repairs to your vehicles, up to a maximum value for incidents other than a collision.
Other types of truck insurance includes:
- Liability insurance: a mandatory coverage that pays for any damage you cause your truck
- Bobtail insurance: a voluntary insurance that covers a truck when it is on the road
- Motor Truck cargo: a voluntary coverage that insures the load carried by a truck
- Physical damage coverage: a voluntary insurance policy that covers trucks against damage from fire, theft and floods
If you are assembling an insurance portfolio or are re-evaluating your existing coverage, it is smart consider commercial auto and truck insurance policy options. Contractors Insurance representatives are always available to review your coverage options and find great rates in New York State and many other areas of the country.