If you are just starting your trucking business, you are going to need commercial truck insurance. Knowing where to start and how to proceed with obtaining it, however, can be tricky.
Below you will find important tips to help ensure your startup is protected.
All Insurance Is Not Created Equal
Although you may know that you have to purchase a commercial truck insurance policy, you cannot pick a generic policy and expect it to give you everything you need. Different coverages protect against different risks — and based on the specifics of your coverage, you may be required to have certain policies.
A few common commercial truck insurance policies include:
- Primary liability insurance
- Cargo insurance
- Physical damage insurance
- Commercial general liability
To know your required coverage, you will want to speak to an insurance professional who specializes in transportation.
Understanding Why You Need Commercial Truck Insurance
There is no denying that commercial truck insurance is going to be an expense you’d prefer to avoid. But, it is important to understand why it is such a necessity. Most critically, you must obtain a , for instance, require that you have a policy in place before you get on the road. Be sure to check the details of the laws where you operate.
What’s more, at any moment, on and off the road, your truck and everything in it is at risk. You will need a policy to protect against any damage or liabilities that you may face. This will keep your business running smoothly, regardless of the size of your operation.
Know What Determines Your Premium
Certain factors play a role in determining your premium — some you have control over and others you do not. Your insurance company will review things such as driving records, the size and age of your fleet, the experience and age of your drivers, the distance you travel, what is hauled, and so forth.
The quote you receive will be based on these things. New trucks, great driving records, and experienced drivers, for example, tend to come with more budget-friendly premiums.
Improve Your Credit Score
Your credit score can significantly impact your plan premium. Many underwriters believe that it says a lot about how many claims you may file in the future. In other words, the higher the credit score, the more claims you may file and the greater the risk you become.
The result? Higher premiums.
By keeping a high credit score, you prove yourself to be responsible and trustworthy. You are often rewarded with a lower rate.
Consider Where You Operate
As a new startup, one of the things you may need to consider is where you operate. You may have a hard time getting decent coverage for cross-country routes in the very beginning due to the risks involved. Therefore, starting with a smaller operating radius will allow you to build up trust with your insurance company.
Note that this is not always the situation, but something to keep in mind when getting your insurance policy.
Partner With Transportation Risk Management Experts
Obtaining commercial truck insurance can be overwhelming at times, especially when you are just starting. Working with those who know the industry can present you with an opportunity to get the protection you need for your fleet without damaging your bottom line.
This is something that many don’t take advantage of right away until they find themselves drowning in high insurance costs down the road. By making smart decisions from the start you can reduce the chance of this happening to you.
Get Started With Daniel & Henry
If you have a startup and need commercial truck insurance, the team of experts at Daniel & Henry can help. We have value-added insurance solutions that are personalized for the needs of your business.
Let us help you reduce risk while keeping your overall insurance costs low.
Get a quote today.
