A complete trucking insurance program may require more than auto liability, physical damage, cargo and general liability. The following coverages can help address contractual requirements, employee injuries, borrowed vehicles, non-owned trailers and emergency towing expenses.
Hired and Non-Owned Auto Liability
Hired and non-owned auto liability helps protect your business when vehicles it does not own are used for business purposes.
Hired Auto Liability
Hired auto liability may cover liability arising from vehicles your business rents, leases, hires or borrows. Examples may include:
- Renting a replacement truck while an insured vehicle is being repaired
- Temporarily leasing additional vehicles during a busy season
- Borrowing a vehicle for business use
- Hiring certain vehicles for a short-term business need
Non-Owned Auto Liability
Non-owned auto liability may protect the business when employees use their personally owned vehicles for company business. Examples include an employee using a personal vehicle to:
- Pick up parts or supplies
- Visit a customer
- Make a bank deposit
- Travel to a business meeting
- Perform another company-related task
Hired and non-owned auto liability generally protects the business against third-party bodily injury and property-damage claims. It does not automatically cover physical damage to the hired or non-owned vehicle.
Additional Insured Coverage
An additional insured endorsement extends certain liability protections under your policy to
another person or organization when required by a written contract.
Trucking companies may be asked to add the following as additional insureds:
- Shippers
- Freight brokers
- Customers
- Property owners
- General contractors
- Leasing companies
- Government entities
Additional insured status does not make the other party the policy owner or provide unlimited coverage. Protection applies only as described by the endorsement and is subject to the policy’s limits, terms and exclusions.
Always provide a copy of the contract so the correct endorsement can be requested.
Waiver of Subrogation
A waiver of subrogation limits an insurance company’s ability to recover money from a specified person or organization after paying a covered claim.
For example, if your insurance company pays a covered loss caused partly by a customer or contractor, it may ordinarily attempt to recover its payment from that party. A waiver of subrogation endorsement may prevent the insurance company from pursuing recovery against the protected party.
Waivers are commonly requested by:
- Shippers
- Brokers
- Contractors
- Property owners
- Equipment lessors
- Government agencies
A waiver must generally be added by endorsement and may result in an additional premium. The wording should match the applicable contractual requirement.
Workers’ Compensation Insurance
Workers’ compensation insurance helps protect employees who suffer job-related injuries or illnesses. Depending on state law and the policy, benefits may include:
- Medical expenses
- Temporary disability benefits
- Permanent disability benefits
- Lost wages
- Rehabilitation expenses
- Death benefits for eligible dependents
Workers’ compensation may apply to drivers, mechanics, dispatchers, office employees, warehouse workers and other employees. Requirements vary by state based on the number of employees, type of work and business structure. Trucking companies operating in multiple states may need coverage that addresses
employees working across state lines.
Workers’ compensation policies commonly include employers liability coverage, which may protect the employer against certain employee injury lawsuits not covered by standard workers’ compensation benefits.
Occupational Accident Insurance
Occupational accident insurance may provide benefits to independent contractors or owner- operators who are injured while performing covered work.
Available benefits may include:
- Accident medical expenses
- Temporary disability
- Permanent disability
- Accidental death
- Dismemberment
- Survivor benefits
Occupational accident insurance is not the same as workers’ compensation. Benefits are normally subject to stated limits, waiting periods, time limits and policy exclusions. This coverage does not automatically satisfy state workers’ compensation laws or prevent a worker from claiming employee status. Trucking companies should carefully review worker classifications and legal requirements before choosing between occupational accident and workers’ compensation coverage.
Trailer Interchange Insurance
Trailer interchange insurance helps pay for physical damage to a non-owned trailer while it is in your possession under a written trailer interchange agreement.
Depending on the policy, covered causes of loss may include:
- Collision
- Overturn
- Fire
- Theft
- Vandalism
- Certain weather-related damage
This coverage is commonly needed by motor carriers that exchange trailers with other trucking companies. The selected limit should reflect the maximum value of any non-owned trailer in your possession. Coverage is subject to a deductible and normally requires a written interchange agreement.
Non-Owned Trailer Physical Damage
Non-owned trailer physical damage may protect trailers your business uses but does not own when no formal trailer interchange agreement applies.
It may be appropriate when you:
- Pull a customer’s trailer
- Use a trailer supplied by a broker or shipper
- Lease or borrow a trailer
- Regularly transport non-owned trailers without exchanging them under a written interchange agreement
Coverage may include collision and comprehensive losses, subject to the policy’s limits, deductibles and exclusions. Trailer interchange and non-owned trailer physical damage are not identical. The correct coverage depends on who owns the trailer, how you obtained possession of it and whether a written trailer interchange agreement exists.
Towing and Roadside Assistance
Towing coverage helps pay certain expenses when a covered truck becomes disabled because of a mechanical problem, accident or other covered event.
Depending on the policy, coverage may include:
- Towing to a qualified repair facility
- Roadside labor
- Battery jump-starts
- Tire changes
- Fuel delivery
- Lockout assistance
- Minor emergency repairs
- Vehicle extraction or recovery
Commercial truck towing can be expensive, especially when heavy-duty wreckers, specialized recovery equipment or long-distance towing are required. Standard towing limits may not be sufficient for heavy trucks, so it is important to review the maximum benefit carefully.
Towing coverage normally does not pay for mechanical repairs, replacement parts or routine maintenance unless specifically stated by the policy.
Build the Right Coverage for Your Trucking Business
Every trucking operation is different. The coverage you need depends on your vehicles, drivers, employees, contracts, trailers, cargo and business relationships. We will review your operation and help identify coverage gaps, contractual requirements and appropriate insurance options.
Contact us today to discuss your trucking business and request a customized insurance quote.
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Coverage availability, limits and requirements vary by carrier, state and individual risk. All coverage is subject to the terms, conditions, limitations, endorsements and exclusions of the applicable insurance policy.
