Commercial Auto | Trucking Insurance
Insuring Your Commercial Vehicles
Understanding Commercial Auto Insurance
If your business uses any type of vehicle, commercial auto insurance becomes a necessity. Because multiple people could be driving your vehicles and these vehicles could transport valuable goods, you will need additional coverage before you can go out on the road. Understanding the various types of commercial auto insurance is vital because not having the proper coverage could lead to a number of additional expenditures in the future.
If your company owns or operates dump trucks, you must have specific insurance to cover this vehicle. Your insurance should include primary liability insurance, which covers you if your dump trucks do damage to private or public property. You will also need additional physical damage insurance, which covers any damage that might occur to the truck. In addition to your insurance, you will need to provide a financial responsibility filing, which shows that you have the necessary levels of insurance to carry out a job. Your insurance company should file most of this paperwork for you once you sign up.
A great deal goes into operating tow trucks and all of this must be covered by insurance. For starters, you will want liability insurance, which covers both property damage and bodily injury. You will also want medical payments insurance, since you could be transporting people in your tow trucks. Other types of insurance to consider are physical damage coverage, uninsured motorist insurance, garage keepers' legal liability insurance and on-hook towing insurance. All of these insurance types protect your tow trucks, your customer's vehicle and your business.
Those who deliver packages or transport merchandise from one location to another require insurance with higher cargo limits. This is because you could be responsible for delivering high priced automobiles and if something goes wrong along the way, you do not want to find yourself liable. A good insurance company can provide you with cargo limits of up to $250,000, liability of up to $2 million and unlimited miles. You must have the highest limits possible to do your job to the best of your ability.
Before signing up with an insurance company to cover your dump trucks and tow trucks, make sure that it offers exactly what you want. The best policies come with an unlimited radius, which is necessary if you do not know where your business travels will take you. If other people will be driving your vehicles, it is a good idea to eliminate any age and driving history restrictions, as they limit whom you can hire. If you are starting a new company, it is important to find an insurance company that supports these new ventures. Overall, you have many different insurance choices to make so weigh your options before making a final decision.