Traditionally, freight carriers were responsible for cargo in their possession until delivery was completed. But today, with all of the individual contracts being negotiated between each different shipper and carrier, it isn’t always so clear-cut as to who is responsible for transportation incidents resulting in property damage or injuries when they occur. The finger can be pointed at the carrier or broker, and possibly even the shipper when it comes time for compensation.
Commercial trucking insurance purchased through trucking liability programs offers companies and drivers some much needed security by providing guaranteed coverage against losses or damages related to their operations. Trucks involved in accidents can cause considerable damage, which can include loss of cargo, and this is especially true for specialized trucks.
What a trucking liability policy provides
A commercial trucking insurance policy offers third party liability coverage every company and independent contractor needs. You must meet certain obligations pertaining to having the appropriate coverage that is in line with the ways in which your commercial vehicles are used. If this is not done you run the risk of facing severe penalties, especially when involved in an incident resulting in injuries.
Primary liability coverage is also available and can be used to take care of any physical injury and damage occurring when a particular accident ensues. This insurance coverage represents vital coverage in the wide cross-section of commercial trucking insurance. If one of your vehicles causes damage to individuals, or another vehicle, most of the costs associated with this accident would be covered under your primary liability policy.
Independent drivers who do not have coverage under a company’s primary liability insurance can get coverage under bobtail liability insurance which can enable truck drivers to save a marginal amount as it can cover them specifically when they are involved in a crash.
Another option is to purchase a cargo insurance policy that provides coverage for independent haulers and covers damages to cargo that is not owned by the independent hauler. An insurance professional involved with trucking liability programs can help you to understand the details and importance of all types of liability coverage.