Running a trucking business or hauling freight as an owner-operator means dealing with risks beyond what regular car insurance is designed to handle. Commercial truck and trailer insurance protects you from the substantial liability and damage risks of operating these heavy-duty vehicles for business purposes.
We’ll walk you through what commercial truck and trailer insurance covers, who needs this protection, how much it costs, and how to score some savings without compromising your coverage.
Commercial truck and trailer insurance helps protect businesses from damages and liability when operating large commercial vehicles. Unlike personal auto insurance, it covers the truck (or tractor) and any trailers you’re hauling, which is critical if your business transports goods.
Beyond being a wise business decision, commercial truck and trailer insurance is a requirement in most states for commercial vehicles over a certain weight, number of axles, or passenger seats.1
Consider this: If a company hauls 80,000 pounds of cargo down the interstate, a single accident can result in significant damage and enormous liability claims. Commercial truck insurance protects against lawsuits that can drain your company’s resources and keeps you compliant with federal and state regulations.
If you use a vehicle to generate income for your business, you’ll likely need a commercial insurance policy. The specific requirements depend on multiple factors, but commercial truck insurance is essential when businesses use larger vehicles to generate income. This applies whether you’re hauling building materials, delivering furniture, or transporting livestock.
While trucking companies are the obvious candidates for commercial truck insurance, plenty of other businesses need this coverage, too. Construction crews may require dump truck insurance, delivery services might need cargo van and box truck insurance, and agricultural operations depend on coverage for grain trucks and livestock trailers.
Commercial truck insurance policies cover a wide range of vehicles:
Semitrucks, also called tractor trailers and 18-wheelers
Flatbed trucks for construction materials and oversized loads
Dump trucks for construction and landscaping
Box trucks for deliveries and moving services
Refrigerated trucks (“reefers”) for temperature-sensitive cargo
Tanker trucks for liquids and chemicals
Trailers, including flatbed, enclosed, refrigerated, and specialty trailers
Coverage details vary by insurance company and specific plan, but insurers can combine truck and trailer policies in a single package. Keep in mind that standard policies don’t always cover every piece of gear bolted to your rig. Cranes, lift gates, and custom storage systems might need additional insurance coverage.
Business truck insurance includes several of the same coverage types as a personal car policy — such as liability, comprehensive, and collision coverage — but it’s far more robust than a standard car policy.2
The core of a commercial truck and trailer insurance policy is trucking liability coverage, which protects against bodily injury and property damage your truck causes to others.
Comprehensive coverage protects against non-collision damage, such as from theft, vandalism, fire, hail, or broken windshields. And collision coverage pays for your truck’s repairs after an accident. You’ll need to pay a deductible out of pocket with either coverage when filing a claim.
Cargo insurance covers the goods you’re transporting. For instance, basic truck insurance doesn’t cover a customer’s electronics shipment, so cargo protection becomes crucial for maintaining client relationships and avoiding significant out-of-pocket losses.
You can customize commercial truck and trailer insurance for your specific needs. Add-ons include protection from accidents during loading and unloading, roadside assistance and towing coverage, and rental reimbursement for when your truck is in the shop. These add-ons help keep your business running smoothly.
Commercial truck insurance can protect your trucks from physical damage, but with a few exclusions. For instance, it won’t pay for mechanical breakdowns or normal wear and tear. Standard policies also don’t cover personal injuries to you or your employees, unless you’ve added personal injury protection or have workers’ compensation, which is usually mandatory.
Additionally, it doesn’t cover any damage from intentional acts, illegal activities, or driving under the influence. Likewise, commercial truck insurance companies won’t pay claims for personal use. You’ll need non-trucking liability coverage instead.
For added protection, companies may want to consider buying vehicle breakdown coverage, and workers’ compensation insurance is often a requirement.
Commercial truck and trailer insurance costs vary widely. Coverage typically costs between $3,500 and $12,000 per truck per year, though some policies can run as high as $20,000 annually. Average monthly premiums for commercial auto insurance can fall between $767 for specialty haulers and more than $1,000 for transport truckers.
Larger, heavier trucks cost more to insure than smaller delivery vehicles. The type of cargo you haul matters, too. Hauling hazardous materials will raise your rates significantly compared to transporting furniture.
Other factors affect insurance rates as well, such as fleet size, type of coverage needed, and claims history. Maintaining clean driving records and investing in safety measures can help keep premiums manageable.
The quoting process for commercial motor insurers is similar to getting a personal auto coverage quote. But commercial vehicle insurance is far more complex and often includes extras like cargo coverage and a higher liability policy limit.
Follow these steps to get a quote for commercial truck and trailer insurance:
Insurance filings represent that you have the necessary coverage to operate legally in the trucking industry. While each state can have specific filing rules or regulatory requirements, a Certificate of Insurance (COI) proves you have active coverage.
The Federal Motor Carrier Safety Administration (FMCSA) requires specific filings based on what you haul and where you operate.2 You’ll likely need the following:
BMC-91 or BMC-91X: Public liability coverage for bodily injury, property damage, and environmental restoration
BMC-34 or BMC-83: Cargo insurance filing in addition to BMC-91 or BMC-91X if you move household goods
BMC-84 or BMC-85: Surety bonds or trust fund agreements guaranteeing freight forwarders and freight brokers will meet their financial obligations
BOC-3: Designates service of process agents to accept legal papers on your behalf
MCS-90: An insurance endorsement that shows you, as the trucking company, will pay for damages if you or one of your drivers is at fault in an accident
Your commercial truck insurance company must submit these forms for you. During audits, inspectors will verify your filings match your coverage, so it’s crucial to work with your agent to ensure your information is accurate and current.
The answers to some frequently asked questions about commercial auto insurance in the trucking industry can offer additional insights.
Commercial motor carriers can cause extensive damage and injuries due to their size and weight. Commercial truck insurance protects your business from liability coverage claims, covers expensive vehicle repairs after an accident, and keeps you legally compliant.
Bobtail insurance provides coverage when you’re not hauling freight or actively working for a motor carrier. This could be when you’re headed home or to your next job and don’t have a trailer attached.
A commercial truck insurance policy typically covers the business owner and any employees driving the trucks. Coverage varies by policy, so it’s crucial to check with your trucking insurance company to see what it includes and how it affects your operating costs.
Commercial truck insurance may include a semitruck insurance policy and coverage for dump trucks, box trucks, and refrigerated trucks. It can also cover various trailer types, such as flatbed, enclosed, and specialty tractor trailers.
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