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Which Insurance Coverages Do Trucking Operations Need?

Which Insurance Coverages do Trucking Operations Need?

The American transportation industry is the lifeblood of commerce and is responsible for moving millions of tons of goods from manufacturing and production centers to end-users each year. With so many miles traveled and cargo hauled, commercial trucking operations face numerous risks. Trucking insurance is a fundamental part of risk management in this industry, yet many trucking operations do not always have a clear picture of the types of insurance coverages available. What trucking insurance is needed to protect operations from liabilities and financial losses? In this guide, you will learn the answers to these important risk management questions.

Risks in Trucking and Transportation Industries

Trucking companies and their drivers face many risks in daily operations. It can be valuable to learn about these risks, which include both existing and emerging exposures. The most critical risks in commercial trucking include:

Driver shortages – the American Trucking Association has indicated that this sector faces a severe driver shortage of more than 100,000 drivers by the year 2022. This puts the entire industry at risk, as drivers are expected to work more hours and cover more road miles to make timely deliveries.  

Driver injuries and illnesses – trucking can be a demanding profession, and thousands of drivers are injured each year. Common injuries include slip and fall injuries, chronic fatigue, injuries from collisions, and sleep deprivation.

Cyber attacks – as more and more companies move to digital cargo tracking and driver management systems, a new risk has emerged: cyber criminality. Hackers can gain access to sensitive data and may even be able to cause physical damage to vehicles and their cargo.

Industry volatility – trucking operations are at the mercy of many industry factors such as supply and demand, fuel pricing swings, and a growing reliance on new technologies. Each of these factors can negatively influence business continuity, putting company assets at risk. 

Regulatory considerations – several government agencies are tasked with monitoring and regulating the trucking industry. Strict rules about driver hours of service, cargo weight limits, and driver training complicate an already-complex industry. Deficiencies in meeting regulatory requirements can result in significant fines and the loss of licensure.

Each of these risks demand attention, as the liabilities associated with them can cost trucking companies thousands or even millions of dollars in claims, penalties, and legal expenses. 

Trucking Insurance: Common Coverages

Now that we have a basic understanding of the risks trucking operations face, we can explore insurance coverages. Some of the most common trucking insurance types include:

  • Truckers General Liability – covers driver actions on the premises of other companies, including delivery locations, truck stops, and transfer facilities. 
  • Motor Truck Cargo – this insurance type covers all aspects of cargo risks, including equipment breakdowns, theft, damage or loss, spoilage, and more. Typically, cargo coverage policies can be had in either broad form or specified perils formats. 
  • Comprehensive and Collision – just like automobile insurance, commercial comprehensive and collision insurance provides coverage if a truck is damaged or destroyed. 
  • Primary Liability – covers any damage or losses that may be caused by trucking operations.
  • Non-Trucking Liability – this insurance protects against claims arising from property damage or injuries that occur outside of direct trucking operations, and may include premises coverage. 
  • Medical Payments – if a truck driver or passenger is injured, this insurance covers expenses associated with medical treatment and care. 
  • Uninsured/Underinsured Motorists –this insurance protects trucking interests if someone else were to cause a collision and does not have sufficient liability insurance of their own. 
  • Cyber Liability – becoming more common across industries, cyber liability insurance protects against the losses associated with unauthorized data breaches, data theft, and physical damage arising from hijacking trucking systems. 

Every trucking company is different, and each will experience its unique risk exposures. However, the above insurance types are considered vital coverages and will protect from the most common risks. Most of these insurance solutions can be tailored to the specific needs of a given operation as well. Working with an experienced trucking insurance company with insights into the trucking industry can be beneficial for any operation, helping to manage risks and the expenses associated with insurance coverages more accurately.  

About Gain Insurance Agency

Gain Insurance Agency protects trucking businesses against liabilities and claims in the industry. We combine products provided by respected insurance providers with our expertise and custom packages to meet customers’ individual needs. Our goal is to give you the coverage that you need at the lowest possible price. To learn more about our products and services, contact us today at (877) 424-3344.

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