Commercial Trucking Insurance

Commercial trucking insurance protects businesses and individuals whose primary business involves using large trucks to transport goods. Due to the unique nature of commercial trucking, this type of insurance is necessary to protect against the  liabilities and risks while on the road.  

 

Jump To: 

• What Is Commercial Trucking Insurance?

• Who Needs Commercial Trucking Insurance? 

• What Types of Insurance Do Truckers Need?

• How Much Does Commercial Trucking Insurance Cost? 

• FAQs

• Explore Your Coverage Options Today!

What is Commercial Trucking Insurance?

Commercial trucking insurance is an industry-specific auto insurance designed to protect commercial trucking businesses. This includes both individual owner-operators as well as fleet owners. This type of insurance offers protection against financial loss due to physical damage, theft, and other related operational occurrences. 

Who Needs Commercial Trucking Insurance?

Anyone that is involved in managing or operating commercial trucks needs insurance to not only protect against risks, but also comply with state and federal transportation regulations. Below are some specific examples of who needs commercial trucking insurance:

 

• Businesses using commercial trucks – Any company that uses trucks for deliveries, construction, or other commercial purposes, including for-hire truckers.
• Freight brokers – Businesses that coordinate freight transportation and may require insurance coverage for liability.
• Motor carriers – Companies responsible for hauling freight using their own or leased trucks.
• Owner-operators – Independent truck drivers who own and operate their own commercial trucks.

 

What Type of Insurance Do Truckers Need?

First, it’s important to note that the Federal Motor Carrier Safety Administration (FMCSA) issues permits in order to be able to conduct trucking business. Without proper insurance, FMCSA will not issue a trucking business permit. At minimum, you will need Cargo and Liability insurance to comply with FMCSA regulations. Below is a list of insurances that are required and recommended:

Cargo Insurance

Cargo insurance protects the goods inside the truck in the event of theft and/or damage. Furthermore, certain states require additional insurance depending on the type of cargo that is being transported, e.g. hazardous material, livestock, and motor vehicles.

General Liability Insurance

General liability insurance covers property damage and bodily injury. If an accident involves another motorist or pedestrian that is caused by a trucker, then the hospital bills will be covered under liability insurance. Under federal law, the amount of insurance required depends on the weight and type of materials the truck is carrying. The Federal Motor Carrier Safety Administration (FMCSA) sets minimum liability coverage requirements for commercial trucks based on the type of freight:

 

• $750,000 for general freight.
• $1,000,000 for hazardous materials.
• $5,000,000 for certain highly hazardous cargo.

Bobtail Insurance

Bobtail insurance provides liability coverage when a truck is being driven without a trailer, such as upon its return from a completed delivery. 

Mechanical Breakdown Insurance (MBI) 

After an original manufacturer’s warranty has expired, MBI insurance covers replacements and repairs for breakdowns and unexpected mechanical failures. 

On-Hook Coverage

This insurance protects a trucking company against damage or loss to a customer’s vehicle or property while under the insured’s care, custody, or control. It is tailored for tow truck operators and trucking businesses that transport other vehicles.

 

Additionally, depending if you are carrying cargo intrastate (within state) or interstate (across state lines), you may be required to carry a higher amount insurance policy. There are penalties for not having insurance or not being adequately insured. The penalty cost varies from state to state. The average violation amount runs at $10,000 a day. Please check with your state’s transportation board to determine the exact amount of coverage you need and to stay informed of any changing minimum requirements. 

Commercial Auto Insurance

Commercial auto insurance protects truck drivers against bodily harm, vehicle damage, property damage, and more, stemming from vehicle-related incidents. This type of coverage is required by law if you regularly use a vehicle for business purposes. 

Workers’ Compensation

Workers’ compensation insurance provides monetary relief to employees who suffer workplace-related injuries or illnesses. Workers’ comp is legally required in all states except for Texas and helps employees by providing payment to cover lost wages, and medical expenses. 

Health Insurance

For truckers operating alone, individual health insurance is a great way to gain essential healthcare benefits, while a group health insurance policy is a suitable option for those with employees. In general, most health insurance policies work by covering the costs of doctors visits, prescriptions medications, hospital stays, preventative care and much more.

How Much Does Commercial Trucking Insurance Cost? 

The average cost of trucking insurance per month can range from $500 to $1600 per month, per truck. There are several major factors in determining the monthly cost. Some of these factors are coverage limits, driving location, driving record, number of trucks being insured etc. Certain states have higher premiums due to operational costs and risks associated with doing business in said state. For example:

 

• New York: Due to being one of the most densely populated states in the country and having one of the harshest winters, doing business in New York will carry a higher premium. On average, the local insurance rate is about $16,000 a year. 
• Oregon: Oregon’s insurance rates are below or at average national rate. The typical local premium rate of $8,484 and an average. 
• Pennsylvania: Pennsylvania’s average local premium rate is lower than Oregon’s, at about $7,800. 

FAQs

Can I tailor my insurance policy to meet the specific needs of my business?

Definitely! Many insurers provide customizable packages, allowing you to select the coverages that fit your business needs. This flexibility ensures you get the protection you require while avoiding paying for unnecessary coverage.

 

Which types of insurance are required for my business?

The insurance you need depends on your driving record, location, and number of trucks being insured. Common coverages typically include cargo insurance, liability insurance, and bobtail insurance. A business insurance expert can help you create a policy tailored to your specific needs.

 

How much can I expect to pay for business insurance? 

The cost of business insurance depends on factors such as the number of trucks you own and or operate, type of cargo you are transporting, and the coverage options you choose. The typical cost per month can be anywhere between $500- $1,600. Keep in mind there are state and federal minimums. It’s best to consult with an insurance expert to get a more accurate estimate.

Get Protected Today with EZ.Insure!

Now that you have a better understanding and more confidence when it comes to trucking insurance, let us help you find the right policy for you. Don’t delay in protecting your business! 

 

At EZ.insure, we are a trusted insurance leader and can offer quick and simple  access to free business insurance quotes and comparison tools. We have a team of experts ready to help you find a policy tailored to your needs!

 

To get started, click the button below or give us a call at 844-770-0876.