Types of Insurance Coverages for New Ventures
Starting as a new venture is an exciting time for a trucking business. As you get everything prepared to get on the road and start running loads, focus on making strong and informed business decisions. The new venture label stays with you for your first two years in business. During this time, the right partnerships and people behind you make the biggest difference between running a successful business and not being able to last in the industry.
As an insurance brokerage, we know the insurance essentials and required parts of running your trucking business. While this is a blanket requirement, no one-size-fits-all insurance exists. Your insurance policy must tailor to your unique business whether you are a Hotshot, Reefer, Dry Van, Flat Bed, etc. Your specific needs should be the first consideration.
Primary Auto Liability covers injuries to other drivers and vehicles. It also covers damage to public property that an accident caused. State and federal agencies require a minimum of $750,000 combined single limit. We recommend higher limits, as most brokers will require that you carry at least $1,000,000 in coverage. Hazmat or other specialized operations may require higher limits.
Motor Truck Cargo insurance protects the transporter for his or her responsibility in the event of damaged or lost freight. This coverage focuses on the needs of your specific operation and commodities that you typically haul. Most brokers require that you carry at least $100,000 in coverage. Higher limits may be required for specialized operations.
This insurance covers your truck and trailer. This coverage breaks down into Comprehensive and Collision insurance. Comprehensive coverage provides protection against damage by something other than a collision with a vehicle or object. Also, it includes if your vehicle is stolen. Collision coverage provides protection if an accident causes damage to the vehicle.
The overall distance you travel from your garaging location plays a role in the cost of your premiums. From an insurance standpoint, the further you are from home means the longer you’ve been on the road. Because of that, you typically see a higher premium cost due to the increased exposure.
If you’re searching for insurance, or if you want to see if your current insurance is the right fit for you, reach out to MIG today. With our group of trusted partners, and focus on the trucking industry, we will be happy to guide you in the right direction.
Read Part Two: Factors That You Might Run Into As A New Venture
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