Truck accidents have become common across the United States. Research reveals that around 500,000 truck accidents take place annually. That’s a whopping number. A few days ago, Massachusetts (MA)was in the news because a truck crashed into a Bellingham home, leaving the driver in critical condition. While the exact cause of the crash is unknown, speed isn’t a factor.
As a commercial trucking company owner, your day-to-day operations are incomplete without trucks. But have you ever imagined what would happen if one of your trucks got into an accident? Not only your vehicle, but your cargo will also get damaged. Things will get ugly if your truck driver or other vehicle’s occupants get seriously injured.
Wouldn’t it be a good thing if your trucking business was insured? Without auto insurance, you will have to bear the entire loss alone. Of course, you wouldn’t want that. If you’ve been putting off purchasing auto insurance for your trucking business, this guide is for you. We’ll discuss why auto insurance is essential for every commercial trucking business.
#1 Law Requires It
If you own a vehicle, insurance is a prerequisite in every state in the U.S., and Massachusetts is no exception. Business owners who use one or more trucks for their day-to-day operations need insurance to safeguard against accidents and damage to property and people.
Without proper insurance, the FMCSA or the Federal Motor Carrier Safety Administration won’t allow you to operate your fleet. Also, keep in mind that the FMCSA assigns a DoT number (Department of Transportation) to commercial vehicles that are registered. Your fleet won’t be assigned DoT if you cannot provide proof of your insurance to the administration. To make sure your commercial trucking business runs without any legal trouble, insurance is a must-have.
#2 Your Cargo Needs to be Protected
Imagine your truck is transporting cargo, and it collides with another vehicle— sounds like a nightmare, doesn’t it? However, such things are common, especially if your truck transports cargo from one city to another.
Accidents aren’t the only threat when it comes to trucking business. Truck robbery, vehicles catching fire, and loads coming undone are a few other ways your cargo could get damaged.
Who will be responsible if something happens to your client’s cargo? Without insurance, your company will have to bear the loss. But if you have a comprehensive auto insurance policy, it will cover the expense. That means your company won’t have to pay out of pocket.
#3 Cost of Repairing is Minimized to a Great Extent
No one thinks of getting injured in a road accident, but life happens. One moment your driver is driving the truck smoothly, and the other moment, it collides with another vehicle.
In a state like Massachusetts, which ranks second among the ten most accident-prone states, auto insurance MA is a no trade-off, especially when you run a trucking business.
Accidents, whether they are severe or minor, damage trucks to a great extent. Believe it or not, the cost of repairing something as trivial as a truck windshield is hefty. If repair costs are high, you can understand how much money it takes to fix a truck after a rollover.
Auto insurance will prove useful in such situations, as it will cover the cost of repairing a truck after it is involved in an accident. You can go for general liability insurance, but keep in mind that it won’t cover damage to your truck but only to other people and their vehicles. To avoid incurring expenses for the damage your vehicle sustains, add physical damage coverage to your policy.
E.J. O’Neil Insurance Agency advises business owners to drop comprehensive or collision coverage on older vehicles. It opines that if your vehicle’s value is ten times less than the premium, purchasing collision or comprehensive coverage won’t be a sound decision.
#4 Builds Confidence in Your Business
If you don’t have commercial auto insurance, do you think customers will choose you to haul goods? Certainly, not. That way, you will only lose clients, and thriving in the industry will become challenging.
Every business that would want their goods to be transported from one city to another would prefer you only when you have a comprehensive auto insurance policy. This way, they will know that their goods are in safe hands. By offering insured trucking services, you will develop a reputation of professionalism and trustworthiness. As such, they are likely to work with you long-term because they know their goods are financially protected.
Get Auto Insurance for Your Trucking Business Today
To sum it up, it doesn’t matter whether your trucking business is at the initial stage or the growth stage, auto insurance is important.
While you can go for a standard policy to meet the legal requirements, it won’t offer expansive coverage. In case your fleet gets involved in accidents, you will have to bear the expense. That is why we recommend opting for a comprehensive coverage policy from the get-go. Once your trucking business is insured, make sure to let your customers know about it, as it will improve your reputation on the market.
