So you’ve decided to start your own trucking company. What now? What insurance coverages do you need? If you have a good independent insurance agency on hand, like us, you can call your agent to get these recommendations, but if you do not, here is a list of what we usually recommend to our clients.
- General Liability – You want to make sure you are covered for any damages you cause in the regular course of business. This could be unloading a pallet, parking your truck in a safety zone that leads to someone getting injured, etc.
- Automobile Liability – This will cover you for any damages you cause while driving your vehicle. For example, if you have an accident that proves to be your fault, this policy will step in to cover the damage caused to the other vehicle or property involved in the incident, as well as any needed medical bills if someone was injured. Nevada state minimums require this at $300,000 combined single limit but USDOT will require this at $1,000,000 Combined Single Limit or more depending on what you are transporting. This will be necessary to obtain your USDOT# to qualify you for longer range travel and to acquire contracts with local vendors for common carry routes.
- Automobile Physical Damage – This will cover damage to your vehicles if they are involved in an accident. There is usually a deductible, but after you pay that amount, the insurance will step in and pay the remainder of the value of your vehicle to help repair or replace it.
- Cargo Coverage – This will cover the actual cargo you haul. If you are hauling for someone else, they will most likely require that you have coverage for the value of the inventory you are carrying on their behalf.
- Workers Compensation – If you have employees and they are injured on the job (whether in an auto accident or other workplace incident), this coverage will step in and take care of the injured employee’s medical needs.
- Umbrella Policy – An umbrella policy is crucial in the event that any of the above incidents are larger than anticipated. If the worst happens, this policy will cover over and above when the limits of your other policies are exhausted.
This is not a completely comprehensive list, but these are just a few of the major coverages we recommend to our own clients!