If you have a constant query regarding Why do you need box truck insurance for your trucking business? You are in the right place!
Many trucking businesses depend upon box trucks to transport bulk goods. Whether you are providing moving services or transporting things from distributors to retailers, you require box trucks in any sort of commercial business. So, with the large variety and sizes of these trucks, there is no single reason behind the need for box truck insurance for your trucking business, Instead, there are many.
Like, the transportation of bulks of chips doesn’t require an equal amount of insurance as transporting expensive furniture or electronics. Also, the risk varies from one transportation case to another. That’s why trucking businesses need truck insurance of different types to save pocket in the long run. But before discussing the need for box truck insurance let’s have a look at the types of straight trucks available in the market, the box truck businesses, and the necessity to get coverage!
So, Let’s get started!
Types of Box Trucks
Box trucks, also named straight trucks are the short-haul kings of the transportation industry. They are usually used for transporting furniture, electronics, hardware, household goods, and many other things. Due to the variety of sizes of box trucks, they are always high in demand for to and fro of goods. Also, the size variations fit businesses of different sizes. Here is a list of the most common types of the box or straight trucks used in the trucking businesses!
- Sleeper Box
- Cargo Cutaway
- Reefer Truck
- Ice Box Truck
- Moving Truck
- Tilt Cab
As you have read about the trucks that come under the category of straight trucks, you should know about the business that falls under the box trucking industry to know the need for insurance for trucks.
Type of Businesses that Require Box Truck Insurance
The purpose of owning and using box trucks is very selective, but there is a large part of commercial businesses that require these trucks to transport goods. Most common businesses that require box truck insurance to cover the short-haul trucking risks are:
- Retail and wholesale Stores
- Household goods moving companies
- Courier and delivery provider companies
Apart from this list, many small businesses also use these trucks to transport furniture from shops or even bakeries to deliver fresh products to other cities. If the above-mentioned list doesn’t have your sort of business, but still you use box trucks, you should consider taking truck insurance to avoid the risk associated. For many small business owners, one single accident can eat away you financially. So, try to understand the need and importance of insurance policies for trucks in detail, which makes it a necessity for you to get your box truck insured today!
Need of Box Truck Insurance for your Trucking Business
Box truck insurance is a requirement of the hour in all states by law. Each state has its own minimum liability coverage requirements depending upon the requirements of your business.
Liability coverage is the basic element to meeting the needs of the State insurance requirements. But, you have additional covers to protect your trucking businesses from any sort of potential losses. You will require good truck insurance for your straight truck, no matter whether you own it or you give it at lease. As each State has its own need for insurance for commercial businesses, but still, it is recommended to get high coverage limits to avoid burning your pocket in the future.
Basically, the type of insurance cover depends on the type of product to be transported or whether you transport your own product or you are a for-hire truck. The coverages offered for box trucks are almost the same as other auto insurances, but still, you need to know the little differences between box truck insurances as they provide you with protection for the following:
This is the most common type of basic truck insurance required by the States and there is a minimum limit of liability coverage required by law. Also, the premium depends upon the size of the truck and the goods to be transported. And as you know, whether you operate any small or big box truck, there is always a risk of an accident. That’s why you need to have State liability insurance for your vehicle. This mainly covers the given, which is especially helpful in the situation where you are responsible for the damage caused to another person, or vehicle.
Bodily Injury: This covers physical injuries caused to the people who met with the accident. For example, if your truck collides with any car or vehicle, the driver or other persons have to be hospitalized. Bodily injury coverage gives financial aid for medical expenses, ambulance charges, and hospital charges too.
Property Damage: If in any unfortunate accident, your box truck collides with another vehicle and caused damage to the truck, then the Property Damage cover comes into effect. It gives you financial support for the damage caused to the vehicle for repairing or replacement cost of the parts if needed.
If you own a box truck, Medical cost cover becomes a necessity. This sort of coverage will assist your company to pay for the medical expenses in case of any unfortunate accident. Medical payments by the insurance provider can be done, no matter who was at fault in the accident. This part of the insurance policy is so essential to save the pocket and run your trucking businesses smoothly. This cover applies to the truck driver and all the persons affected in the accident.
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Physical Damage coverage will protect your vehicle from damage in any of the incident cases like theft, vandalism, fire, or any unfortunate accident. If in case, your box truck is damaged to an extent that it can’t be repaired, then the insurance provider will give you the replacement cost. Actually, this sort of insurance is divided into two parts: Collision and Comprehensive.
Comprehensive cover is very important in the cases where you have a loan on your box truck or you have leased it or you are a private carrier. It will protect you in the event of loss due to theft, vandals, fire, etc.
Collision damage covers your vehicle in the cases of roll-over accidents or collisions with any vehicle or even objects like trees etc.
So, if you want to protect your box truck from any kind of damage that too without a financial crunch, physical damage insurance coverage is significant for your trucking business.
Probably, the cargo you haul is the most important asset of your transportation business. So, it’s your vital duty to protect it from any kind of loss or damage. The need for truck cargo insurance is to protect the contents or goods of the trailer, temperature control machinery, or any appliances or equipment that are used to keep your cargo safe during the haul. This insurance cover is customized as per the cargo type to be hauled and the needs of the shipper.
Uninsured and Underinsured Motorist Coverage
Insurance is required as per law but still, many people break this rule and drive without a license and proper insurance coverage. Also, In some cases, people carry liabilities, but their insurance cover is not enough to pay you for any damage caused by an accident.
In such scenarios, Uninsured and Underinsured motorist coverage keeps you and your box truck safe from any financial loss. For example, your box truck collides with any vehicle, and your truck is badly damaged or you get injured. After putting up a complaint, you find that the vehicle is not insured. In this case, the uninsured and underinsured cover will help you to pay for the repair or replacement cost and your medical bills also. But keep in mind that this cover is helpful where the opposite party is at fault. This sort is very much recommended in the case of box truck operations, as you never know which kind of person or vehicle you may collide with.
Box truck insurance is not just worth it…It’s the need of your trucking business. Now as you know enough to get your box truck insured for your trucking business is to be safe and away from a financial crunch.
Keeping your truck insured under necessary insurance covers will help you to protect your business for the long run and you will be relaxed every time your vehicle heads out for cargo transport. That’s why you need box truck insurance for your trucking business to protect your company from any kind of risk.
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Hope you had a good reading time!