Insurance is an integral part of any business there may be and the trucking industry is no exception. Truck drivers, whether owner operator or company driver, deal with a lot of businesses and people. Therefore, it is essential to have insurance to avoid high costs in case of any unforeseen situations. General liability and cargo insurances are the most common insurances within the trucking industry, but what is the difference between the two?
General liability insurance for truckers is, as its name gives away, a general insurance. Insurance is not required, but it is essential to avoid high payouts. Some of the areas covered are:
Having said the above, this does not only apply if there is an actual office where customers visit. If a truck driver operates as an owner operator, property damage is not relevant, however it is essential to obtain such insurance. Why? As it covers injuries of other premises or to other people that may occur on truck stops, weigh stations or even at delivery docks.
The limits for this type of insurance is usually $1,000,000 for an incident and $2,000,000 for the policy period. These are just standard limits, however they can be adjusted per need of the insurer depending on the risk and the exposure, if the goods transporte are hazardous for example. It is good to know that the higher the limit of insurance coverage the higher the cost of it will be.
This is a more narrow type and applicable only to the shipments. It is used mostly to protect the driver or the trucking company from all the expenses that may occur due to the goods' damage.
Cargo insurance does not guarantee that goods can be restored or brought to the customer, but it will mean that its value is saved. It is highly recommended that truck companies insure the goods which they transport. Depending on the insurance company and the amount of coverage on average such insurance may cost up to $1000.
Both insurances are advisable to any type of truck driver or trucking company, they cover different areas of the operations and therefore are equally important. It is important to note for the drivers that having both of these insurances will help to avoid high costs to third parties or to the goods.
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