Tom's Blog

Essential Insurance Coverage for Your Trucking Company

Running a trucking company comes with significant risks, making the right insurance coverage essential for protecting your business, drivers, and assets. Whether you operate a single truck or a large fleet, having the appropriate insurance ensures compliance with legal requirements and financial security in case of accidents or unforeseen events. Here are the key types of insurance every trucking company should consider.

1. Primary Liability Insurance

This coverage is legally required for all trucking companies and protects against damages or injuries caused to others in an accident where the truck driver is at fault. It does not cover damage to your own truck but ensures you meet federal and state regulations.

2. Physical Damage Insurance

While not mandatory, physical damage insurance is highly recommended. It covers repairs or replacement costs for your truck and trailer if they are damaged in an accident, fire, theft, or natural disaster.

3. Cargo Insurance

Cargo insurance protects the goods you transport in case of damage, theft, or loss. Many clients require trucking companies to carry this coverage to safeguard their shipments.

4. General Liability Insurance

This policy provides coverage for non-trucking-related incidents, such as injuries occurring at your business premises or property damage caused by your operations.

5. Non-Trucking Liability Insurance

Also known as bobtail insurance, this policy covers your truck when it is being operated for non-business purposes, such as when the driver is off duty but still using the vehicle.

6. Workers’ Compensation Insurance

If you have employees, workers’ compensation is essential. It provides medical benefits and wage replacement if a driver or other employee gets injured on the job.

7. Occupational Accident Insurance

For independent owner-operators, occupational accident insurance offers coverage similar to workers’ compensation, providing benefits in case of job-related injuries or disabilities.

8. Trailer Interchange Insurance

If you haul trailers that are not owned by your company, trailer interchange insurance covers any damages that may occur while in your possession.

9. Reefer Breakdown Insurance

For trucking companies transporting temperature-sensitive cargo, reefer breakdown insurance covers losses due to refrigeration unit failure.

Protect Your Trucking Business with Paramount Insurance Agency

At Paramount Insurance Agency in High Point, NC, we understand the unique risks trucking companies face. Our experts can help you find tailored insurance solutions that meet legal requirements and protect your business. Contact us today to discuss the best coverage options for your trucking company.