Owning a semi-truck comes with a unique set of responsibilities, especially when it comes to protecting your investment. Whether you’re an owner-operator or run a small trucking business, having the right insurance is critical to keeping your vehicle, business, and finances secure. Given the size and weight of semi-trucks, accidents can lead to costly damages, and without adequate insurance, these expenses could easily overwhelm you.
Types of Insurance for Semi Truck Owners
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Primary Liability Insurance
Primary liability insurance is the minimum coverage required by law for all commercial trucks. This type of insurance covers bodily injuries and property damage if you’re at fault in an accident. Primary liability insurance does not cover any damages to your truck; it only protects other people and their property. Most states require a minimum coverage amount, typically around $750,000 to $1 million.
Primary liability insurance is essential because it provides a financial safeguard in case your truck is involved in an accident. Operating a semi-truck without primary liability insurance is illegal and could result in hefty fines, business closures, and potential lawsuits.
- Physical Damage Insurance
While primary liability insurance covers damages to other people and property, it does not cover your truck. Physical damage insurance protects your semi-truck against damages from various types of accidents, regardless of fault. Physical damage insurance is typically divided into two categories:
- Collision Coverage: This part of the policy covers damages if your truck is involved in a collision with another vehicle or object. Whether you’re in a minor fender-bender or a major accident, collision coverage ensures your truck can be repaired or replaced.
- Comprehensive Coverage: This covers damages to your truck from non-collision-related incidents, such as theft, vandalism, fire, or natural disasters. Given the frequency of hailstorms, wildfires, and other weather-related risks, comprehensive coverage is highly recommended for Arizona semi-truck owners.
- Cargo Insurance
If you’re transporting goods, cargo insurance is crucial. Cargo insurance covers the freight or goods you’re hauling, ensuring they are protected if they’re damaged or lost during transport. Cargo can be worth thousands, even millions, of dollars depending on the type and quantity, and without coverage, you could be held financially responsible for any damages or losses.
Cargo insurance is often required by brokers, shippers, and federal law, depending on what you’re hauling. Some policies even offer coverage for specific risks, such as debris removal if a spill occurs.
- Bobtail Insurance
Bobtail insurance, also known as non-trucking liability insurance, provides coverage when you’re driving your semi without a trailer attached, or when you’re not under dispatch. Many owner-operators find themselves driving their trucks without cargo, either on the way to pick up a load or heading home after a delivery. Bobtail insurance fills this gap and covers liability in case of accidents when your truck is not on an active job.
While bobtail insurance isn’t always mandatory, it’s an essential safety net for drivers who frequently operate their semi without a trailer attached.
- Motor Truck General Liability Insurance
Motor truck general liability insurance covers claims that arise from your business activities when you’re not on the road. This policy can include coverage for incidents like:
– Incidents occurring on your business premises
– Damages resulting from loading or unloading cargo
– Advertising-related claims, like copyright infringement or libel
– Third-party bodily injuries that occur during the course of business
This type of insurance is essential for semi-truck owners who have their own business, as it provides protection from lawsuits and claims that might arise from daily operations beyond driving.
- Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage provides financial protection if you’re involved in an accident with a driver who either doesn’t have insurance or has inadequate coverage. Since semi-trucks are large vehicles, they are susceptible to significant damage if hit by another vehicle. This policy helps cover your medical expenses and damages if the at-fault driver’s insurance isn’t sufficient.
- Workers’ Compensation Insurance
If you have employees, workers’ compensation insurance is a necessary addition to your insurance portfolio. Workers’ compensation provides medical coverage and wage replacement for employees who are injured on the job. In Arizona, this coverage is legally required for businesses with employees, including trucking companies.
Selecting the right insurance for your semi-truck can feel overwhelming with so many options to consider. However, ArizonaInsurance.biz makes it easy to find the perfect coverage to suit your needs. With their extensive knowledge of commercial trucking insurance, they can help you evaluate each type of policy and find the right balance between affordability and protection. They offer a range of insurance products designed specifically for Arizona semi-truck owners, giving you peace of mind on the road and off.
From primary liability to workers’ compensation and everything in between, Arizona Insurance has you covered. Reach out today to discuss your insurance needs, and let them help you safeguard your business and your investment in your semi-truck.
