Commercial Truck Insurance: Special Considerations For Independents
Commercial Truck Insurance: Special Considerations For Independents
Working as an independent owner/operator in the commercial truck industry can be a great way to earn a living. You never have to feel tied down to one particular company. Not as many company mandated driver metrics to worry about. You always have a feeling of being on the move and going where the wind takes you.
Certain sacrifices have to be made for that sort of freedom, though. You will never have the sense of security that comes with being a full time driver for a large-scale motor carrier.
That security comes in many forms. First and foremost, you know that you have steady work and a paycheck always on the horizon. Another important piece of that sense of security is knowing that you are being provided with adequate truck insurance coverage. Most drivers at large freight companies don't have to worry about insurance because their respective employers take care of truck insurance coverage needs.
As an independent, you may have to see to it yourself that you have the level of insurance coverage that both you desire and the law requires. Motor carriers will provide you with the minimal liability coverage that the law requires (while on dispatch only) but the rest is up to you.
For example, after the load is dropped off, and the truck is empty, often times the company's insurance coverage for an independent driver ends. Even though the commercial truck insurance coverage is gone, the driver still needs to either take the empty truck back or drive home. At this point in time it is the driver's responsibility to have the appropriate insurance coverage, as no one is looking out for the driver at this moment. He or she will be held personally liable to pay for damages in the event of an accident. Trust me, truck accidents are incredibly expensive, and proper commercial truck insurance is critical.
Below are the more common types of truck insurance specially designed for independent owner/operators working for motor carriers. Take a moment to review these coverage options and decide if any is right for you.
Physical Damage Coverage
Physical damage coverage provides you with the security that if your truck is damaged, stolen, or vandalized, you will not be burdened with the cost of repair or replacement. No matter what happens, or whose fault it is, physical damage coverage will make sure your property is repaired or replaced. Motor carriers generally won't offer this coverage and you are therefore responsible for protecting your own property.
Non-Trucking Liability
You want to protect your assets even when you're not out on dispatch, right? This is an important policy to consider for staying insured when off the job. Whether you are using your truck for personal use or on a return trip, you need to be sure that you still have the coverage you need.
What Else To Consider
Be aware of local regulations as well as cargo-specific regulations. Different states may dictate different levels of coverage. Also, the nature of your cargo (hazardous waste, for example) may also require separate coverage.
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