If you own or operate a commercial truck, you know how important it is to have adequate insurance coverage. Commercial truck insurance protects you from the financial risks of accidents, theft, vandalism, and other hazards. But how do you know if your current policy is enough? Here are some signs that you may need to increase your insurance coverage for your commercial truck, along with some examples of how they can affect your business.
New Equipment or Accessories
If you have installed new features such as a GPS system, a refrigeration unit, or a lift gate, you may need to increase your coverage to reflect the higher value of your truck. Otherwise, you may not receive the full compensation in case of a loss. For example, if your lift gate is stolen or damaged, you may have to pay for a replacement or repair out of your own pocket, unless you have comprehensive coverage that covers theft and vandalism.
Expanded Service Area or Delivery Range
If you have started to operate in new regions or states, you may need to adjust your coverage to comply with the local laws and regulations. Different states have different minimum liability requirements and other coverage options that may affect your policy. For example, if you start delivering in California, you may need to add uninsured/underinsured motorist coverage, which covers you if you are hit by a driver who has no or insufficient insurance.
Increased Cargo Value or Type
If you have started to haul more expensive or hazardous cargo, you may need to increase your coverage to protect yourself from potential lawsuits or damages. For example, if you transport perishable goods, you may need to add spoilage coverage to cover the loss of cargo due to a breakdown or delay. If you transport hazardous materials, you may need to add pollution liability coverage to cover the environmental cleanup costs in case of a spill. For instance, if your truck is carrying chemicals and it leaks on the road, you may be liable for the contamination and remediation costs, unless you have pollution liability coverage.
New Drivers or Employees
If you have added new members to your team, you may need to increase your coverage to cover their actions and injuries. You may also need to update your workers’ compensation insurance and your employer’s liability insurance to protect yourself from the claims of your employees. For example, if one of your drivers causes an accident that injures another person or damages their property, you may be sued for their medical bills and repairs, unless you have adequate liability coverage. If one of your employees gets injured on the job, they may file a workers’ compensation claim for their lost wages and medical expenses, unless you have workers’ compensation insurance.
A Claim or an Accident
If you have been involved in a claim or an accident, you may need to increase your coverage to avoid paying out of pocket for the damages or injuries. For example, if your truck is totaled in a collision, you may have to pay the difference between the market value of your truck and the amount owed on your loan, unless you have gap insurance that covers the gap.
These are some of the signs that you may need to increase your insurance coverage for your commercial truck, along with some examples of how they can affect your business. However, every situation is different, and the best way to determine your optimal coverage is to consult with an insurance provider who can assess your needs and offer you a customized quote. Contact Fleet Line Insurance today to find out how we can help you protect your commercial truck and your business.
