What An Owner Operator Should Know About Commercial Truck Insurance
Did you break away from being a driver for big trucking companies to become an owner-operator? Although the freedom of being your own boss is a big accomplishment, you now have more responsibilities as an owner-operator. The main responsibility is to avoid getting sued in the event that an accident is caused, as a lawsuit can result in a substantial financial loss to your business profits. Sometimes accidents happen no matter how well a trucker drives, as bad weather often plays a role in such cases. Before you take your first job as an owner-operator, invest in commercial truck insurance to make sure you are covered in the event of causing an accident.
Why You Need General Liability Coverage
General liability truck insurance is important to have because it can protect you financially. For instance, if you hit another vehicle with your semi-truck, it can result in a lawsuit threat. Insurance coverage can prevent a lawsuit because the victim and his or her passengers can file a claim. A general liability policy covers bodily injuries, vehicle damage, and valuable items that were damaged in the victim's vehicle. If a legal case arises after an accident, a portion of the legal fees will be covered under a general liability insurance policy.
Other Types of Coverage That Should Be Considered
If you would like to extend your truck insurance coverage, there are a few options to consider that are not covered under a general liability insurance policy. If you will be transporting cargo as an owner-operator, consider what could happen to the cargo during the process. You need cargo insurance coverage so you will be covered financially if a client's cargo gets damaged in an accident or stolen from the trailer of your truck. Uninsured motorist coverage should also be considered so you can file a claim with your own insurance provider if an uninsured driver collides with your truck.
What Commercial Truck Insurance Costs
The cost of commercial truck insurance is based on your driving history, such as if you have caused any accidents. Your age, credit report, and the nature of your business as an owner-operator will be considered as well. If you intend to transport hazardous materials, the insurance premium might be higher. The criteria for setting a premium rate varies between insurance companies, so contact a commercial truck insurance agent if you would like to receive a quote.
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