Running a trucking business comes with many risks—unexpected accidents, cargo damage, and legal liabilities can all threaten your operations. Whether you’re an owner-operator or managing a fleet, having the right commercial trucking insurance is crucial for protecting your business and financial stability.
This guide will break down the essential coverages you need, helping you make informed decisions about protecting your assets, drivers, and cargo.
Commercial Auto Liability Insurance: A Legal Requirement
This coverage is the foundation of any trucking insurance policy. It protects you if a covered truck is involved in an accident that results in bodily injury or property damage to others.
What It Covers:
- Medical expenses and legal fees if you’re at fault in an accident
- Property damage to other vehicles or structures
- Court settlements and defense costs
The Federal Motor Carrier Safety Administration (FMCSA) requires commercial auto liability coverage for interstate carriers, with minimum limits ranging from $750,000 to $5 million, depending on the type of cargo transported. However, higher limits are often recommended for full protection.
Physical Damage Insurance: Protecting Your Truck and Trailer
Trucks are valuable assets, and repairs or replacements can be costly. Physical damage insurance helps cover expenses if a covered truck or trailer is damaged in an accident or other incidents like theft or natural disasters.
What It Covers:
- Collision Coverage: Pays for damage if a covered truck is involved in an accident with another vehicle or object
- Comprehensive Coverage: Covers non-collision-related damage, such as fire, vandalism, and weather events
Key Considerations:
- This is not legally required but is highly recommended, especially if you’re financing or leasing your vehicle.
- Deductibles vary, so choosing the right balance between premium costs and out-of-pocket expenses is crucial.
Cargo Insurance: Protecting What You Haul
When transporting goods, you’re responsible for ensuring their safety. Cargo insurance covers loss or damage to the freight you haul for which you are legally liable as a motor carrier thereby, protecting you from financial liability if something goes wrong.
What It Covers:
- Damage from accidents, fire, or theft
- Loss of cargo due to hijacking or overturning
- Refrigeration breakdown (if applicable)
Key Considerations:
- Coverage limits depend on the type of cargo transported. Some high-value goods may require additional protection.
- Certain exclusions apply, so reviewing policy terms is critical.
General Liability Insurance: Coverage Beyond the Road
Accidents and liabilities don’t just happen on the road. General liability insurance protects trucking businesses from claims that occur off the highway—such as injuries at a loading dock or damage caused by a driver at a customer’s location that don’t involve the use of a truck or trailer.
What It Covers:
- Slip-and-fall injuries at business locations
- Property damage caused by your operations
- Advertising and personal injury claims
Key Considerations:
- This coverage is separate from auto liability insurance and is essential for broader business protection.
- Many shippers and brokers require trucking companies to have this coverage before doing business with them.
Making the Right Insurance Choices
Choosing the right commercial trucking insurance coverage depends on the specific risks your business faces. Here’s a quick recap to guide your decision-making:
- Commercial Auto Liability Insurance: Required by law; protects against third-party injuries and property damage.
- Physical Damage Insurance: Covers repairs or replacement of a covered truck and trailer.
- Cargo Insurance: Safeguards the goods you transport.
- General Liability Insurance: Provides coverage for non-driving-related business risks.
Secure Your Business Today
Understanding your insurance needs is the first step toward long-term business stability. Great West Casualty Company specializes in trucking insurance solutions designed to keep your operations moving forward.
Get a customized policy today—contact us to discuss your coverage options and find the best protection for your business.
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The information in this article is provided as a courtesy of Great West Casualty Company. To see what additional resources Great West Casualty Company can provide for its insureds, please contact your safety representative, or click below to find an agent.
© Great West Casualty Company 2025. The material in this publication is the property of Great West Casualty Company unless otherwise noted and may not be reproduced without its written consent by any person other than a current insured of Great West Casualty Company for business purposes. Insured should attribute use as follows: “© Great West Casualty Company 2025. Used with permission by Great West Casualty Company.”
This material is intended to be a broad overview of the subject matter and is provided for informational purposes only. Great West Casualty Company does not provide legal advice to its insureds, nor does it advise insureds on employment-related issues. Therefore, the subject matter is not intended to serve as legal or employment advice for any issue(s) that may arise in the operations of its insureds. Legal advice should always be sought from the insured’s legal counsel. Great West Casualty Company shall have neither liability nor responsibility to any person or entity with respect to any loss, action, or inaction alleged to be caused directly or indirectly as a result of the information contained herein.
