Preventing Frequent Trucking Insurance Errors
Wednesday, March 18th, 2009There are countless hours and labor put into running a commercial truck business and to protect this investment, owners should purchase trucking insurance. Overlooking this basic component of driving commercial trucks risks the long-term security of the company.
The same common mistakes are generally made by truck owners when purchasing trucking insurance coverage. These mistakes can be easily avoided by obtaining a little knowledge and guidance.
Setting the limits of coverage too low is one mistake that is frequently made. Extra coverage can be added to your policy with little affect on your premium rates. Often you can double your limits with only a marginal increase in premium.
Because insurance policies contain a lot of legal terminologies, it is common for drivers to not read through them. It is important however, that if you do not want to read or do not understand the policy, you find someone who can help you. Do this before you purchase the policy, because afterwards it is too late to make any changes.
Fin out if your policy will defend or indemnify in the event of a lawsuit. If your policy has defense coverage it means the insurance company will defend you if you get sued. Indemnify refers to the insurer paying out if there is a judgment placed against you, usually up to a certain limit.
Casualty and liability coverage are the two basic types of trucking insurance coverage. Casualty coverage will pay for claims resulting from sudden events such as an accident, and liability coverage will pay for claims resulting from someone else claiming you are responsible for their loss. Both of these types of coverage have within them many options, so ask questions to determine what is right for you.
Because of all the variables in insurance policies and the trucking industry, many drivers seek the counsel of an insurance expert. Insurance brokers would be a great resource to contact when looking for trucking insurance coverage. Brokers work with many different insurance companies, and sell various types of policies, so they will be able to give you the advice you need and get your policy for the best price.