Trucking Insurance: Types and Coverage


Every trucking company is required to have proper trucking insurance. While there are basic requirements, your insurance options will vary based on the type of trucks you have, the goods you haul, and many other factors.

 When you’re starting your trucking business, the insurance package you choose will need to protect your operations. All trucking insurance policies require primary liability, though other coverages are often needed. It is important to know more about the types of trucking insurance and coverage each provides to ensure you have all your bases covered.

Types of Trucking Insurance You May Need for Your Trucking Company

Here is a look at the most common kinds of commercial truck insurance coverage that may apply to your business. 

Primary Auto Liability

The one type of trucking insurance that every trucking company is mandated to have as per the federal regulations set by the Federal Motor Carrier Safety Administration (FMCSA) is primary auto liability. Every truck in your fleet, even leased trucks, must have this coverage for legal operations. Primary auto liability protects your company if a third party is injured in an accident. 

General Liability

Another required coverage is general liability, which protects your trucking company if one of your drivers causes injury or property damage in a wreck. Additionally, it will cover a driver’s actions on another person’s property, such as at loading docks or truck stops, and will cover you for mistakes with load delivery. 

Physical Damage

Coverage for physical damage is not mandated but it is advised since it will pay for repairs from damage caused by theft, vandalism, collisions, or natural disasters. In the event the truck is damaged beyond repair, physical damage coverage will replace the truck. 

Bobtail Coverage

Known as “non-trucking liability,” this type of coverage is for when a truck driver is off dispatch or driving the truck for personal reasons. It’s an extra measure of protection for situations in which the owner-operator isn’t protected by primary liability coverage. 

Motor Truck Cargo Insurance

You can use this coverage to protect your interests if the cargo on one of your trucks is damaged or lost. The premiums will vary based on the type of freight that is hauled. 

Rental Reimbursement

Rental reimbursement insurance is another way to protect your fleet and may be ideal if you have older trucks. This coverage reimburses you for renting a replacement truck to use while yours is in the shop for repairs. 

Trailer Interchange

Adding trailer interchange coverage may be helpful for your non-owned trailers. It provides physical damage coverage in the event of thefts, explosions, fires, vandalism, or collisions. 

Uninsured/Underinsured Motorists

Just like auto insurance policies for passenger vehicles, trucking companies can also add uninsured/underinsured motorist coverage. This insurance covers you if another driver hits your truck and doesn’t have any liability insurance. 

Medical Payment

Medical payment coverage will vary by state, though it will pay for medical bills for a trucker or a passenger if they are injured while driving or riding in the truck. 

Reefer Breakdown

For trucking companies with refrigerated trucks in their fleets, reefer breakdown coverage is something you should have. It covers the cost of refrigeration breakdown, lost cargo, and damaged products from a collision. 

While you may want to keep your insurance rates low, having the right types of coverage is priceless.