Why do Truckers Need General Liability Insurance?
General Liability insurance for truckers is going to protect your trucking business against lawsuits that arise out of your operations alleging bodily injury, including applicable medical costs and fees, and property damage.
This type of insurance policy is needed by every type of trucking business owner because unforeseen events can happen to anyone at any time. Something as small as a slip and fall by a customer on your premises, or as big as driving through a building and having to pay to replace it, can happen at any given moment. After all, you and your employees are human and mistakes and accidents can happen.
A huge benefit of General Liability insurance is the defense costs. Attorney fees and court costs can add up to tens of thousands, if not more, and can end up bankrupting a business if there is no insurance in place.
An insurance company will pay to defend you regardless of whether or not you are guilty. If you lose and the plaintiff is awarded a judgment or settlement, they will pay for that too.
Imagine the amount of money you would save by having this insurance in place, for probably a few hundred dollars, versus lawsuit-related expenses.
How Can I Protect My Trucking Business?
Do Truckers Need General Liability Insurance?
Since you are already smart enough to start a business, we probably don't have to tell you how critical having General Liability insurance is. However, many people think it is only for on-premise accidents and this is certainly not the case.
While there is absolutely coverage if a customer or other third party is injured on your premises, there are so many scenarios that can happen off-premises that you need to be aware of that General Liability insurance can handle. Have any of your employees delivered a load to the wrong place?
While it may not happen often, if you get busy and your truckers are running around with their heads cut off, it can happen. And unfortunately, not all receivers of products are going to be understanding since they paid to have the proper delivery.
Your drivers will be coming in contact with many different people throughout their travels. After driving for a long time, they could be tired and irritable. This could cause some unfortunate events to occur.
They could get into an altercation at any of those tops whether a truck stop, loading dock, weigh station, or anywhere else they stop along the way. Because they are working for you at the time, you can be held liable if they cause bodily harm or property damage to others. While it is not fair, it is a reality.
Do you think that if you or your employees commit libel or slander against a competitor, vendor, or even customer that they will simply look the other way? That is not likely. General Liability insurance for truckers will cover this exposure and hopefully smooth everything over, as these damages can add up pretty quickly.
What is Covered Under General Liability For Truckers?
When you purchase Commercial General Liability insurance for truckers you are getting a vast amount of coverage and you must know what they are. The following are standard and you will find these coverages in all General Liability insurance policies for truckers.
Bodily Injury
Coverage for third parties who are either injured on your premises, or throughout the course of your business. This is for those instances where your drivers may have a meltdown at a truck stop or a customer slips on ice or a spill on your premises.
Property Damage
One of your truck drivers will more than likely hit a mailbox in the course of their truck driving career, so you would find that coverage here. As well as any other property damage to others that is caused by you or your employees.
Medical Payments
The medical payments associated with the bodily injury above will be paid for by your General Liability policy.
Personal and Advertising Injury
Things like libel, slander, and defamation are covered here and these things often happen unintentionally. A social media post or a conversation can be had and boom, a lawsuit comes your way. At least with General Liability, you can rest easy that you will be prepared if this unfortunate event occurs.
Damage to Premises Rented to You
If you choose to rent a facility for your business and there is a fire, you can replace the premises with your General Liability coverage. Many landlords will require this coverage as part of their lease anyway.
Something you may be wondering about is if there is a fire, collision, or theft that results in the loss of the cargo you are hauling. Unfortunately, this type of loss would not be covered under General Liability. You would have to purchase motor truck cargo insurance.
What is Umbrella Insurance for Truckers?
Another insurance policy you should strongly consider is Umbrella insurance for truckers. Many lawsuits start out at $1,000,000 and can often be even more than that.
Depending on the damages caused your limits on the General Liability or Commercial Auto policy may not be enough. An Umbrella insurance policy can give you peace of mind by providing an extra limit of liability coverage on top of what you already have.
Is General Liability Insurance Legally Required for Truckers?
The Federal Motor Carrier Safety Administration (FMCSA) requires public liability insurance, cargo insurance, and any special endorsements that are required due to the type of freight. It does not require general liability insurance, but this is one type of coverage every business should consider.
General liability insurance will cover many things that the minimum amount of insurance required will not. It will cover things such as bodily injury to a third party, medical payments for the injury, and advertising claims. It will also cover non-accident property damage, such as hitting a mailbox or sign.
How Much Does General Liability Insurance Cost for Truckers?
The cost of general liability insurance for trucking companies depends on several factors. They include your driving record, the type of rig you drive, the types of products you haul, and more.
You could expect general liability insurance to cost around $2,500 to $4,000 for $750,000 of coverage per driver. You can get a quote for your business by simply contacting one of our trucking insurance experts.
What is the Difference Between General Liability and Commercial Auto?
Commercial Auto insurance is essential for truck driving, but there are many situations in which General Liability insurance is needed. These include allowing employees to have a dog with them while they are working, wrong or missed deliveries, and constant loading and unloading exposure.
Additionally, receivers expect what they asked for and if they don't get it, you will get sued. Therefore, it is important to purchase both General Liability and Commercial Auto insurance for your trucking operation.
What are the Limits for a Truckers General Liability Policy?
When considering insurance policies for truckers, it is important to have a general idea of what is standard. General Liability policies usually have standard limits of $1,000,000 per occurrence and $2,000 per policy period, or aggregate.
Commercial Auto policies usually have a combined limit of $1000,000 and can be raised or lowered depending on exposure and risk. Truckers can also purchase the Umbrella insurance policy for truckers. The coverage limits you choose will be part of what dictates how much insurance will cost you.
CoverWallet has access to some great insurance programs for truckers from many different insurance carriers. To make sure your business is fully protected, you should trust an educated insurance agent that specializes in what you do.
What Happens if a Trucker Does Not Have General Liability Insurance?
General liability insurance will pay when someone initiates a claim against you for allegedly causing them injury or property loss. This can be from someone injuring their hand while closing the door on your rig, a delivery failure due to an employee error, and attorney fees associated with defending against a claim.
For truckers, general liability insurance covers many things that are not covered by commercial auto insurance. The average claim amount for truck accidents is anywhere from a few thousand dollars for a minor accident to several million dollars for a serious accident claim. Without sufficient insurance, you might be liable for paying the entire amount.
The best way to get started with the trucking general liability insurance you need is to contact a CoverWallet agent to get a quote.
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