What Kind Of Insurance Do Truck Drivers Need?

If you plan to use your heavy goods vehicle for business, you must get insurance to protect yourself and others. New truck insurance might be difficult, especially for newly licensed drivers. You’re responsible for your and others’ safety on the road, and if you want your startup to flourish, you must follow the rules. There are plenty of options for quick and easy lorry insurance cover, so there is no excuse not to be insured.

Insurance policies are often the difference between success and failure for companies when catastrophe strikes. The trucking sector requires specific types of insurance and coverage, some of which are mandated by law and others of which may be “common sense.” 

This article will discuss the various insurance for a trucking company available to truck drivers who are also business owners.

Why Do Truckers Need Insurance?

When you’re only thinking about your bottom line, insurance premiums can seem like a lot of money. But here are a few reasons why truckers need insurance? 

No Operation Without Insurance

It is required by law. Proof of liability insurance is necessary for your DOT and Federal Motor Carrier Safety Administration (“FMCSA”) Operating Authority/MC Number application.

The minimum requirements for insuring motor carriers are outlined in 49 CFR 387. You will certainly be asked for proof of insurance when undertaking safety checks or audits.

Assurance To Shippers & Customers

Proof of liability insurance is required before shippers entrust you with their cargo. They are putting their income and standing in your hands by trusting you with their business.

Any problems with freight or transportation, i.e., damage to the goods or a delay in delivery, might bankrupt the company. 

They should feel assured that their rights will be upheld and that they will receive fair compensation in the event of an accident.

Safety & Protection

Sometimes even nice individuals have their lives turned upside down. Occasionally, there will be an accident involving a vehicle. Delays are inevitable. Protecting one’s financial interests alongside those of one’s clients is a primary goal of insurance.

Suppose your freight, vehicle, or driver is damaged or delayed. In that case, the proper insurance coverage will ensure you are not responsible for covering the full cost of repairs or replacements. You can continue operations while coping with the aftermath of a catastrophic event since you can receive your repairs.

Types Of Insurance Truck Drivers Can Avail

The FMCSA requires the following before issuing an operating authority:

Public liability insurance covers injuries, property damage, and environmental repair caused by your vehicle. This covers driver and third-party injuries. It covers your and public property damage. If you transport freight, you’ll need $750,000 to $5,000,000 in coverage.

Cargo insurance covers theft, abandonment, improper packing, personnel errors, or Customs rejection. FMCSA requires $5,000 per vehicle and $10,000 per incident in cargo insurance.

A $75,000 Surety Bond or Trust Fund Agreement is required for drivers.

Endorsement for Motor Carrier Public Liability Insurance Policies under Sections 29 and 30 of the Motor Carrier Act of 1980 – for Hazmat Safety Permit Carriers

Health Insurance For Truck Drivers

People that depend on you should be considered while choosing truck driver health insurance. Getting your own health insurance plan is a good idea. This ensures that if you fall ill or are injured, you can get the medical care you need to return to work quickly. 

Here are some insurances to discuss with your broker:

Short-Term Health Insurance

Short-term health insurance fills gaps between coverages, such as while you’re waiting for a company plan or Medicare eligibility or don’t have health insurance.

However, short-term health plans are restricted. Coverage may last a year and be limited. Pre-existing conditions will be excluded. Some offer prescription discounts but not a complete range. 

For example, complicated childbirth is probably covered, but not “normal” childbirth treatments. 

Check if mental health, substance abuse, rehabilitation, oral/dental care, or pediatrics are covered. The ACA does not cover them, so costs and coverage may vary.

Gap Insurance

Gap health insurance cushions your main health plan. It’s “insurance for your insurance plan,” especially if you have a large deductible. Gap health insurance programs minimize high deductible costs before your main plan begins. However, gap insurance has limited benefits. 

After a certain limit, you’ll be responsible for expenditures. Gap insurance policies do not fall under the Affordable Care Act. 

Therefore you will face additional tax penalties if you utilize gap insurance alone.

Disability Insurance

If you can’t work, disability insurance will replace a portion or all of your income. Disability insurance helps you maintain your lifestyle, support your family, and pay bills while you cannot work or recover. 

Short-term disability insurance covers three to six months of income and long-term covers over six months.

Bottom Line: Truck Related Coverage

Every driver needs car/driving insurance, commercial or not. This covers damages, injuries, etc. So it’s smart to have adequate coverage for medical payments and uninsured/underinsured motorists in case a driver injures you without liability insurance.

Considering insurance — statutory minimum requirements, cargo categories, deductibles, and legal jargon — might be difficult if you’re a new truck driver or owner-operator. 

Social Truckin is ready to support you with expert dispatch, competitive load price negotiations, DOT compliance, and document management. We can help you meet your business duties, so you may spend more time driving and producing money.