Truck insurance is a critical part of many commercial operations, especially in the transport industry. Numerous issues, though, can challenge a commercial trucking business. Before you set up a commercial truck insurance policy, it's wise to explore these 5 issues so you'll know how to confront them.
Regulatory Compliance
Every truck on the road in the U.S. needs to be licensed and insured. Companies have to comply with both state and federal rules regarding vehicle operation. Conforming to these rules is also critical to obtaining insurance because insurers look for violations or lapses in determining rates. If a company wants to get the best possible rates, it needs to maintain full licensing and compliance at all times.
Completeness of Coverage
Ideally, a truck insurance policy will be as complete as possible. Companies need to have up-to-date valuations on all of their vehicles. Likewise, they should always get complete manifests for all of their cargo. It is important to be sure that your policy will cover the potential total loss of the vehicle, trailer, and cargo if something happens. You need to know this number for every trip and be prepared to seek more insurance if you're not fully covered.
Demands on Drivers
One of the biggest sources of liability exposure in the trucking business is the driver. Insurers want to know that companies are working with operators who don't have problematic records. This means companies need to be thorough in dealing with background checks and drug tests. It is also wise to verify all qualifications and driving histories.
The limited availability of drivers, though, makes this a bigger challenge than most. Practically speaking, companies aren't sending fleets of vehicles out with drivers who have impeccable records. The important thing, though, is to completely document everything you know about your drivers so you can show you've made a good-faith effort to screen candidates and limit risk.
Bobtail Coverage
People often focus on hauling. However, commercial truck insurance needs to cover bobtail operations, too. This is when a truck is without a load and not operating in a commercial capacity. Especially for smaller operators, bobtail coverage protects the biggest asset they have. You don't want to be liable for replacing the rig if an accident occurs when it's not doing anything commercial.
Traffic and Parking
Traffic congestion is a growing problem, and this creates conditions that challenge trucking firms. Trucks and other vehicles are at heightened risk of colliding. It is important to have sufficient coverage for incidents that occur in traffic or parking lots because these are growing sources of exposure.
For more information on truck insurance, contact a professional near you.
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