The trucking industry plays a major role in the supply chain of every other sector. Imagine a scenario when a truck breaks down due to some reasons. In such a situation, all the operations of other businesses get stuck. Consequences? Late completion of the product and late delivery. That means, ultimately, the earning of the business gets affected.
In fact, that’s the reason why the American trucking association states that “trucks are the lifeblood of the entire U.S. economy.” Don’t believe it? Well, if you’ll look at the following statistics, we are sure you’ll start believing.
- In 2019, the U.S. trucking industry was worth 791.7 billion dollars
- In the same year, the industry transported approximately 72.5% of the freight that was around 11.84 billion tons
- This industry employs approximately 1 million people
- If a long-haul trucking industry stops working, the whole food supply will get affected to the extent that the grocery stores will be out of food
Shocking, right? However, it’s only one side of the story. As more than 15 million heavy-duty vehicles are running in the united states, it is not a surprise that many of these vehicles end up getting into collisions. If we look at the prevailing data since 2009, the number of accidents has increased by 46%.
That’s not it! In 2018 74% of the crashes involved heavy-duty vehicles. Taking this data into consideration, it becomes crucial that you protect your trucks. If you are wondering how? Then its practical answer is by insuring them.
However, it’s easier said than done. There are several types of trucking companies. You have to conduct proper research to know which insurance policy is good for your company. And for that, you have to know about its different types.
Are you ready to learn? Let’s Go!
Types of Trucking Insurance
You might agree with us that it is not easy to design an insurance policy. The company has to consider the industry’s risk level, the cost associated, and the ever-changing market conditions. Only after a thorough analysis of each of these factors, a policy is constructed.
But, of course, a single policy can’t satisfy the needs of every business in this industry. That’s why there are several types of them, such as non-trucking liability, long haul trucking insurance, cargo insurance, heavy equipment hauler, bobtail, deadhead, insurance, tow truck, dump truck, and many more. So that you can find the perfect policy that matches your requirement.
Now that you know about all the insurance policies, the next step is to select the one that is right for you.
Techniques to Select the Right Policy
Trucks are the most valuable assets of this industry. Unlike the other industries, you can’t keep your asset with you. Confused? Alright, let us make it simple for you! To earn money, you have to send your heavy-duty vehicles aways for transportation. If you don’t do this, there is no point in operating a business.
As your asset is away from you, you don’t know how your employees are taking care of it while traveling. Besides that, generally, these vehicles have freight that needs to be transported. Thus, it becomes your responsibility to ensure that all the goods stay safe.
Hence you have no other choice left but to select the best insurance match for your business. But how? To learn, scroll down!
The concept of insurance was made to cover the risk. That’s why the first thing that you should pay attention to while purchasing a policy is what types of risks are covered in it. In general, your policy should include the following coverage:
- Physical Damage.It will help you in covering the financial cost of vehicle repair in case of accidental damage. Some policies also include the payment of damage if your vehicle gets stolen.
- Trailer Interchange.If you have the trailer interchange agreement then the inclusion of this coverage is a must for you. It will protect you in a scenario where the trailer gets damaged due to fire, vandalism, collision, or any other reason. In simple terms, you’ll be able to save yourself from the financial burden.
- Automobile Liability.his coverage will protect you, in a case where you are at fault for damage or injury of a property or person.
- Medical Payment. It goes without saying that every accident results in the injury of the person involved. So, you need this coverage to pay all the medical bills.
- Hired and Non-Owned.In case you don’t own the vehicle but use it after hiring/renting, this coverage will help you cover your liability.
These are a few must-have coverages that you should look for whenever purchasing a policy. Besides these, you can also look for motor truck cargo and UM/UIM coverage.
As your business continues to grow, it is obvious that you’ll discover more threats. So, if we consider the rule of thumb, whenever you see a risk, you should do your best to cover it. Nonetheless, for that, it is essential that your policy is flexible. Otherwise, you have to purchase different policies for different risks. Which will turn into a headache later on.
Last but not least, in the race of minimizing all the risks, you can’t ignore the importance of managing your finances. Just like your trucks need fuel to run, your company needs finances to run. Therefore when you are selecting a policy, you should understand the payment plan.
Ask the insurer about the payment policy or about any offer that they might be offering. If you are short on finances, you should opt for the monthly installment plan as it will help manage all your company expenses on a regular basis. On the other hand, you can pay the annual premium and enjoy the benefits for the rest of the year without any disturbance.
To Sum It All Up
Risk management is very crucial for every business, especially for trucking companies. As this business runs on the roads where you are not aware of the next sharp turn. Thus, you need to be prepared for all the risks by choosing the best insurance policy.