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  • Writer's pictureAlex | Branch Manager

How Truckers Can Benefit From Commercial Insurance

Updated: Nov 19, 2021

Commercial trucking insurance is an important coverage for an owner-operator or small business providing trucking services. Your insurance options will differ depending on the type of truck your drivers’ are driving, the goods they’re carrying, their number of years’ experience and the risks incurred.

The trucking insurance package you decide on for your company will likely include a few different types of coverage, and to identify the options you require, it will help to gain an understanding of each type of coverage and how they work.

Do I Need Commercial Trucking Insurance?

Commercial truck insurance protects you from costly bills should any of your trucks become involved in an accident. If you drive a personal truck or car, you already know you require auto insurance to stay legal on the road.

Commercial trucking insurance covers circumstances where you use your truck to transport products, animals, customers, and materials. If you use your vehicle both professionally and personally, a commercial insurance truck policy will fill in the gaps your personal auto insurance leaves behind. But, this isn’t typically the case with larger commercial trucking companies.

Trucking insurance policies start with primary liability and then build on that with several other coverages. You’re required to have primary liability coverage as part of a trucking license to protect property and people from damage your trucks cause. But, there are also other types of company trucking insurance you should consider.

Different Types of Commercial Trucking Insurance

Common commercial truck insurance coverages include:

1. Primary Auto Liability

As mentioned, you are required by federal regulations to have this insurance coverage. Every one of your trucks, including leased units, must carry commercial auto insurance. Liability insurance will provide you with protection when a third party becomes injured from an accident.

2. General Liability

Every state requires general liability coverage. It protects you if one of your drivers causes property damage or bodily damage because of a crash. It covers a driver’s actions who is operating on another person’s premises, like truck stops or loading docks. It also includes load delivery mistakes.

3. Physical Damage

Physical damage coverage will pay for a commercial truck or trailer repairs from damage by things like:




Natural disasters

Alternatively, if your truck becomes damaged beyond repair, this coverage will replace it. The cost of the truck and equipment will determine the premiums.

4. Bobtail

Bobtail coverage, also called non-trucking liability, is coverage for circumstances where the truck driver is driving the truck for personal reasons or is off dispatch. Any situations where the owner-operator isn’t covered by primary liability coverage, bobtail coverage will cover kick in. But, bobtail insurance doesn’t protect truck drivers when they’re pulling a trailer, using a truck to make money or driving a truck for a trucking company.

5. Motor Truck Cargo

This coverage provides you with protection if the cargo on one of your commercial trucks is lost or damaged. Premiums will depend on the freight type.

6. Rental Reimbursement

Rental reimbursement is exactly what it sounds like — it provides you with money for renting a replacement truck while your vehicle is being repaired.

7. Trailer Interchange

Trailer Interchange insurance provides Physical Damage insurance for trailers being pulled under a trailer interchange agreement. This is essentially Physical Damage insurance for non-owned trailers. This insurance protects you if the trailer is damaged by collision, fire, theft, explosion or vandalism.

8. Medical Payment

Medical payment coverage pays for any medical bills you or a passenger incur while driving or riding in the truck. Each state will vary in this coverage.

9. Uninsured/Underinsured Motorists

This insurance will protect you if another person hits you and doesn’t have liability insurance.

10. Reefer Breakdown Coverage

If you own refrigerated trucks, reefer breakdown coverage would cover the cost of things like:

Refrigeration breakdown

Lost cargo

Damage to products because of a collision

Some insurance policies have exclusions. For instance, certain products are excluded, such as tobacco products, frozen food, or seafood.


Keep in mind, while cheaper trucking insurance is always nice, it might not provide you with the protection you require. While most basic liability insurance coverages are similar across insurance providers, you should thoroughly examine other coverages, including and beyond those discussed above.

Work with Elite Insurance Agency for Your Commercial Trucking Insurance Needs

When you choose an independent insurance provider and get the commercial trucking insurance coverage you need, you have a sense of relief. However, finding insurance isn’t a one-time experience.

As your company changes and grows, your trucking insurance needs will as well. Every year, you should reevaluate your insurance and see if you’re still receiving the full protection your company needs.

Contact us to insure your commercial business

Office Number: 323-203-1801 or complete our online form.

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