General liability insurance and specialized commercial truck insurance may sound like they are one and the same, or interchangeable, but there are some key differences that can be addressed to clear up confusion. The main thing to know is that a general liability policy is not be enough to cover a trucking operation that wants to protect their company from costly bills and reputational damage.
To better understand the right option for your trucking operation, let’s go over a few key comparisons that can help you make the right coverage decision depending on your needs.
For general liability insurance, the name itself should be an indicator as to its coverage and extent. This kind of coverage pertains to very broad third-party liability coverage not related to automobiles or trucks. Protection for injuries or property damage, such as injuries sustained while on company premises, are the types of things this kind of coverage is made for.
Truck (auto) liability insurance is meant to zero-in on the use of, and third party liability for, trucks and their operations. This kind of protection is a requirement and is usually the costliest type of insurance.Truck liability insurance protects for property damage or injuries to other people as a result of truck accidents and is required by State and Federal agencies.
For Commercial General Liability insurance, policy limits are usually issued at $1,000,000 per any one occurrence and $2,000,000 in aggregate for the policy for one year. Of course, higher limits can be set depending on your operation and needs.
Truck liability insurance is generally issued at limits of $750,000 per any one occurrence which is the limit set by US DoT for trucks having a GVW over 10,000 lbs. Most trucking companies are carrying $1,000,000 limits of coverage and the recent trend is to get higher limits. For those vehicles under 10,000 GVW, or not subject to Federal DOT requirements, lower limits may be obtained. Your insurance broker can verify the requirements you are subject to.
When it comes to truck liability insurance, various policy endorsements are available. Some additional coverage to keep in mind include pollution liability, Federal MCS90 and State form endorsements that extend coverage to regulatory agencies.
Additional broader forms are available where the policy can be issued on an “any auto,” basis, or issued with Hired and/or Non-Owned Autos which further protects the trucking company from other liability they may have on vehicles they do not own.
Regardless of all the moving parts that need to be taken into consideration, consulting with your commercial truck insurance representative is always a good rule of thumb to follow to get accurate pricing and coverage options.
About Western Truck Insurance Services
Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.