Transporting goods across cities and states comes with a level of risk. After all, a lot can go wrong as you head out on the road in a large commercial truck.
It doesn’t matter how much you are hauling, how far you are driving, how great your defensive driving skills are, or how well your rig is maintained —- you are always a split second away from something going terribly wrong. Accidents happen when you least expect it.
Will you have the right coverage? What if property is damaged or if someone got hurt? Having the right insurance is valuable in these situations.
This article explores everything you need to know about the importance of liability coverage in commercial truck insurance.
What is Liability Coverage?
When you purchase commercial trucking insurance, you will be given the option to include liability coverage. Understanding what it is can help you make the right investment.
Simply stated, liability coverage is a type of insurance that is used to protect you against claims of property damage and bodily injury. In other words, if you are driving and injure someone or cause damage, you could face a catastrophic financial loss — unless you have liability coverage.
While the exact coverage will depend on your specific policy, most liability property found in commercial trucking policies include:
- At-fault accidents
- Injuries to other drivers
- Injuries to pedestrians
- Injuries to passengers
- Damage to public property
Many of these policies will even cover legal costs should an accident lead to the courtroom.
Types of Liability Coverage
There are two main types of liability coverage to cover different risks faced by those in the commercial trucking industry, primary and general.
Primary liability insurance is coverage that is required by law. All truckers must have this coverage to legally drive their truck — and it protects them from things that happen when they are behind the wheel. Primary liability protects when someone is hurt or property is damaged due to an accident or other mishap.
General liability insurance, on the other hand, offers protection to truckers off the road. This includes injuries or damage that happen at a physical location, such as a slip and fall, legal fees, and other risks that may occur in the scope of business.
What Happens if You Decline Liability Coverage?
Not having liability coverage can put you at serious risk, both financially and for the health of your business. Any automobile has the power to do a lot of damage and cause a lot of injury — that damage is magnified when it is a semi-truck.
If you find yourself in this situation without liability protection, you will be required to cover the cost of damages, medical bills, and more out of your own pocket. This can lead to many struggles for a trucking business and can even halt business entirely.
By investing in the right policy, you can minimize financial risk and handle any disruptions that may come your way when the unthinkable happens.
Keep in mind that liability coverage is not only important for commercial trucking but it is also required for those who want to remain compliant with federal laws. Don’t miss out on this vital component of your insurance coverage.
Daniel & Henry provides comprehensive, value-added commercial truck insurance solutions designed for your trucking business while reducing your overall insurance costs.
