Managing one truck can be challenging enough, but the added responsibility can be overwhelming when that truck turns into an entire fleet of vehicles. Beyond juggling maintenance, downtime, safety, and scheduling, you’ll also need to manage the risks associated with a fleet. This is where fleet insurance comes in, as it can help you manage the risks related to your vehicles or equipment.
Photo by Andrea Piacquadio
It Protects Your Investment
One of the biggest reasons commercial transport insurance is a must is that it protects your investment. Getting started in the transport industry is not cheap — you can spend thousands upon thousands just on the vehicles alone. Unless you have the money to pay for any sudden repairs or vehicle replacements, securing insurance will help you protect those investments if something unexpected happens.
On top of keeping your vehicles and equipment protected, certain types of insurance can protect you against liabilities and the cost of any potential litigation. It also helps you avoid paying out of pocket for damage or losses incurred on freight.
It’s easy to assume that fleet insurance only works for a fleet comprised of only one type of vehicle. However, most fleet insurance policies will allow you to insure any type of vehicle under one policy.
Keeps Your Business Running
Unexpected circumstances won’t just cost you money in terms of repairs or replacements. You can also lose out on potential income you could’ve made during the downtime. Having the appropriate insurance coverages in your (fleet) insurance policy can help cover lost income and, in some cases, reimburse you for the cost of rental vehicles and equipment.
Insurance helps give you peace of mind knowing that an accident or natural disaster won’t bring you to your knees. Speak with your insurance company to ensure you have the coverage necessary to keep your business running optimally, even during unexpected situations.
You Need Insurance to Operate
States require general liability insurance, while federal law requires primary liability insurance — and you’ll have to meet the regulation minimums for both.
Without the proper insurance policies, it’s likely you won’t be able to get on the road. Getting caught without insurance can mean legal issues that might put a stop to your business operations. You may also struggle to find clients to work with, as not many might want to work with someone uninsured. In many cases, you won’t even be able to bid on jobs without proving you have the minimum insurance coverage required.
Tip: Remember to Seek The Right Kinds of Coverage
Although, in most cases, only primary liability and general liability coverage are required by federal law and state law, respectively, you may still want to look for additional coverage to make sure you’re as protected as you can be. Even if you have fleet insurance, it doesn’t always mean the policy protects against some circumstances you might encounter during your day-to-day business operations.
For example, your insurance policy may not always provide bobtail insurance coverage. Bobtail insurance covers any property damage, injury, or loss that might happen while drivers are using the truck off-duty. It covers any miles travelled without a trailer attached and any personal stops made. A few bobtail insurance companies like Cover Wallet, State Farm, and East Insurance Group also provide coverage for all manner of risks.
Building an insurance policy that suits your business’s needs doesn’t have to be complicated, as long as you can find a company you’re comfortable working with. Seeking multiple quotes from multiple companies can also help you decide.