Rescue Your Revenue
Knowledge is Powerful & So is Insurance
Properly insuring a transportation business can be tricky. Even a seasoned fleet owner must be very careful to ensure that all equipment has adequate insurance coverage. Review your coverage with an experienced transportation insurance agent and protect your business from many of the common mistakes made.
Some Common Pitfalls
1. Buying the Lowest Price Policy
Make sure the low-cost policy covers the types of claims you want covered. You get what you pay for with many insurance policies. Lower priced insurance may mean reduced benefits. Review and evaluate your specific needs with your agent. Then, make informed decisions based on your needs.
2. Failing to Buy the Types of Coverage Needed
Your business might need various types of commercial trucking insurance. Policies may include: general liability, primary liability, physical damage, cargo, medical, PIP, uninsured and underinsured motorist coverage, and other types of coverage.
3. Not Valuing Your Equipment Properly
Your truck was worth $30,000 a couple of years ago, which is what you insured it for. However, it’s now worth $50,000 in this hard-to-find truck market. What happens if your truck is totaled? Will you be paid the $30,000 you insured it for or the $50,000 it’s now worth? Ask your insurance agent to confirm the exact coverage language on your policy.
4. Failing to Have Insurance on All Equipment Attached To and Inside Your Truck
It’s important to note the difference between permanently attached equipment and other business property on and in your truck. Confirm which assets are covered; and update your policies when you make additions.
5. Not Purchasing Rental or Loss of Use Coverage
If someone hits your truck and you’re down for three weeks for repairs, how will you continue to haul loads? Temporary rental equipment is currently difficult to find and very expensive. Relying on the at-fault driver and their insurance to pay you for a rental may not be sufficient. Make sure you have insurance to cover these possibilities.
6. Not Saving Enough to Cover the Deductible
If you accidentally damage your truck, your physical damage policy probably has a deductible. For example, many policies have a $1,000 deductible. If the damage is $5,000, your insurance company may only pay you $4,000. In order to get your truck fixed, you will have to come out-of-pocket with $1,000. Keep a rainy-day account that protects you from being in a tight spot with repairs.
While properly insuring your equipment can be tricky, claims can be even more tricky. Be prepared for the unexpected. Protect yourself and your business from the pitfalls of “I wish we would have…” and instead be able to say, “I’m sure glad we ...!”
*The information provided is for general informational purposes only and does not constitute legal advice.*
For more information on this or other legal issues, please contact:
The Law Offices of
Eckert & Associates, P.A.