How Much Truck Liability Insurance Do You Need?

Carrying adequate insurance coverage is vital if you are in the trucking business. Among the different types of insurance, the insurance that you must have is truck liability insurance. Also, buying minimum truck liability insurance is legally mandated for you to ply your vehicles on the road.

Seeing the importance of truck liability insurance for truckers, we have discussed this topic in this blog. It covers the inclusions and exclusions in truck liability insurance, the coverage limit you must consider buying, and the factors determining the coverage limit.

Inclusions in Truck Liability Insurance   

Trucks are large vehicles that, in the event of an accident, can cause extensive property damage, and injuries and accidents can happen to the best of drivers. So, staying covered for damages or injuries that your truck may cause to others is an option that you must have to stay protected financially.

It offers you that option. You are covered for third-party property damage. It also pays the medical bills and lost wages if the injured party cannot work for some time.

Exclusions in Truck Liability Insurance  

When you buy it you must ask your insurance provider about the types of damages and injuries not included in its coverage. The exclusions in truck liability insurance include:

  • Damage to the truck
  • Damage to your business property
  • Injuries to the trucker

While your business’s commercial property insurance will cover damage to the truck or any business property damaged by the truck, you must have worker’s compensation insurance coverage to cover the trucker’s medical expenses.

Extent of Truck Liability Insurance Coverage Limit Needed

Each state has guidelines regarding the minimum level of liability coverage that you must carry. It usually ranges between $ 500,000 to $ 750,000. However, it is recommended to have at least a $ 1 million coverage limit to ensure that you can fully settle all claims.

The coverage limit may vary depending on your truck type and the cargo being transported in your truck. If your truck’s cargo remains the same each time, the liability insurance coverage limit may remain. However, if you deliver different types of cargo, an adjustment in the coverage limit may be necessary depending on the cargo type.

Factors That Determine Your Truck Liability Insurance Coverage Limit

The coverage of the truck liability insurance essentially depends on:

  • Weight of the truck
  • Type of cargo

Trucks over 10,000 pounds with non-hazardous cargo must have a $ 750,000 coverage limit. With hazardous cargo such as radioactive materials, explosive gases, and poisonous chemicals, they need a $ 5 million coverage limit.

Secure Your Trucking Business with Premier Insurance

To ensure that you have adequate insurance for your trucking business, our Premier Risk, LLC team can help you get commercial auto insurance best suited to your needs. For more information, contact us today.