Important Facts to Know About Commercial Trucking Insurance for Truckers

Every type of business has specific requirements, and to protect that business you need a particular type of insurance. Similarly, for trucking businesses or independent truck drivers, a commercial truck insurance policy plays a vital role in minimizing the trucking business risks. Below we have discussed the important terms under commercial truck insurance for truckers.

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About Commercial Truck Insurance 

Commercial truck insurance is a type of commercial vehicle insurance offered to insure the trucks that are used for different purposes like pick-ups, loading, moving & packing, delivering, transporting, etc. Since trucks are categorized into heavy-duty vehicles and their runtime is usually higher than other vehicles, they are more prone to unwanted road mishaps. So, as a truck owner, the safety of your truck should be a high priority, and you must ensure your vehicle at the time of buying.

The importance of truck insurance is to financially protect any trucker from unforeseen damages or loss caused due to accidents, natural or man-made disasters, fire explosions, or thefts. Therefore, it is better to buy truck insurance online and stay safe all the time.

Important Terms Used Under Commercial Truck Insurance Policy

Before you start requesting truck insurance quotes from different insurers, you must know about the types of coverages under your commercial truck insurance policy. Otherwise, you won't know what you are quoting for and what is important for you.

Here are some of the insurance terms used under your truck insurance policy-

1. Basic Coverage- Basic coverage or primary coverage includes collision damage and comprehensive insurance. Collision damage financially assists you in repairing your truck if it is damaged in an accident with a third-party. Comprehensive coverage is similar to regular motor vehicle insurance. It covers the cost of repairs to your vehicles caused by natural or man-made disasters, theft, fire-related accidents, accident, etc. 

2. General Liability Coverage- General liability (GL) is a vital coverage that protects your truck business from any property damage or bodily injury that might occur during a truck accident. Personal and advertising injuries are also being covered under GL. It also pays for the damages to rented properties or premises coverage that is used for the trucking business.

3. Cargo Coverage-If your truck business is involved in transporting goods, it is important to insure the shipping cargo as well. It financially covers the loss involved due to the damaged or stolen goods carried in a trailer. Usually, depending on the type of cargo insurance, you get coverage for the instances like- cargo theft, damage, scrap clean-up, etc. So, we suggest you connect with your insurer executive before buying the truck insurance policy to avail the maximum benefit under a single insurance policy.

4. Physical Damage Cover-Physical damage cover under your truck insurance policy refers to a series of coverages designed to protect your truck. It includes damages caused by collisions, rollovers, theft, vandalism, etc. This type of coverage is extra beneficial in cases where your truck is not leased or under a loan. If you are involved in a trucking business, you must obtain a specific form of physical damage cover known as Combined Additional Coverage (CAC) insurance.

It covers specific, non-collision-related incidents. Also, every physical damage insurance policy typically requires a deductible, which denotes the amount you pay from your pocket while raising a claim. So, make sure you set your deductible amount effectively. As too high means it will be deducted from your pocket while raising the claim, and too low leads you to pay more premium than the set standard.

5. Bob Tail Insurance Coverage- Bobtail insurance coverage protects you and your truck at the time when you're not towing a trailer or any other kind of load. It also applies when you are not running the truck on the road after dropping off a load and the trailer.

6. Non-trucking Liability Coverage- Non-trucking liability coverage protects you against any accidents that occur when you're using your commercial vehicle truck for personal use. For example- use the commercial truck as mover and packers while doing your home shifting. This covers your personal errands, but the definition of personal errands has been clarified under your commercial vehicle insurance. So, we suggest reading the policy coverage carefully before making the deal.

7. Reefer Breakdown Insurance Coverage-Refrigerated or reefer truck insurance is for the businesses that transport perishables like milk. Reefer breakdown insurance protects against refrigerated cargo spoilage due to a mechanical breakdown or an accident. It is the requirement to haul for most shippers and provides the motor carrier with protection when the equipment fails.

8. Medical Payments Coverage- Medical payments coverage offers financial coverage for injuries to you, your employee in the business, or anyone riding/driving the truck with your consent. It also compensates for accidental death while driving the truck. 

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Choosing the Right Policy

Protecting your trucking business means ensuring your assets properly. Whether you need basic truck insurance coverage or need to add general liability, it must fulfill your needs. Also, adding it to your business costs will help you in reducing financial stress during an accident or disaster.

Choose an insurance company that takes enough time to explain coverage options and gives you choices. A right commercial truck insurance policy refers to a combination of various coverages.

For example- primary coverage is mandated, general liability might be required or suggested by the insurer, and any other cover will strengthen your protection as per your business and needs. Before buying, consider the type of business you are in and consider worst-case scenarios. 


A commercial truck insurance policy is essential for any truck owner or trucking business. Never lookout for the first or cheapest option you find on the internet. Instead, browse well, compare different trucker insurance online, and then buy a policy that will be worth the premiums you pay.

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