If you need to make daily business travel plans without worrying about something going wrong on the road then you might be interested in learning about different types of insurance for your box truck business.
A vehicle accident can happen quickly, leaving your business to have to deal with costly damage and injuries.
Insurance coverage of your box truck may prevent many issues from happening on the road.
Below, find a list of insurance types for box trucks.
Who needs box truck insurance?
Box truck insurance is required in all states with each state having its minimum requirements for liability coverage.
Your box truck needs to comply with the minimum requirements for the state in which it’s registered.
Liability coverage is a key component needed to meet state insurance requirements.
However, additional coverages can protect your truck and your business from other potentially costly losses.
Businesses needing box truck insurance are:
- Transportation companies.
- Couriers.
- Retail and wholesale distribution.
- Movers.
- Furniture delivery companies.
- Contractors and builders
While each state sets its limits for required liability coverage, it's often recommended to consider higher coverage limits to properly protect your trucking business.
Liability from accidents, particularly accidents involving bodily injury, can easily exceed the minimum amount mandated for your state, leaving your trucking business exposed to potentially large losses.
FMCSA interstate box truck insurance requirements
If you need an MC number, the FMCSA requires that you have public liability insurance that covers both bodily injury and property damage claims.
Minimum coverage limits depend upon the freight that you haul and the size of your trucks, including box trucks.
The potential coverages you could be required to have include:
- Cargo
- General liability
- Bodily injury
- Physical damage
- Medical payments
- Uninsured or underinsured motorist
- Reefer breakdown
Types of insurance box truck drivers should consider
1. Reefer breakdown insurance
Reefer breakdown insurance provides you protection if your refrigerated trailer breaks down due to mechanical failure of the temperature control system.
This coverage will provide insurance for the loss of cargo, so you do not have to.
2. Liability insurance
While operating a box truck, there is always the risk of running into an accident.
If that happens, the consequences may imply big costs.
There are two types of liability coverage:
- Bodily injury: covers the medical bills, ambulance, and hospitalization for a person who was caused a physical injury by involving into an accident with your box truck where your truck was found to be guilty.
- Property damage: If your truck damages another vehicle, property damage coverage will pay for its replacement or repair costs.
3. Medical payments insurance
If your box truck is involved in an accident and one of the passengers is injured then, who pays for hospitalization or the treatment of the injured passenger?
The medical insurance policy protects your company from paying the medical expenses related to the above scenario regardless of whoever is at the fault of the collision.
4. Physical damage insurance
This type of insurance covers the payments for the damage to your box truck.
There are two types of coverage that a physical damage policy includes. These are:
- Collision coverage covers the payments for the needed repairs of the damaged commercial vehicle that was involved in an accident, no matter who was at fault.
- Comprehensive coverage helps paying for damage to your vehicle after a non-collision-related incident, like theft, vandalism, or any natural disaster.
5. Underinsured or uninsured motorist insurance
Some drivers may not carry enough insurance coverage to handle the damages from a possible accident on the road.
If one of your box trucks gets involved in an accident with such a driver, uninsured/underinsured motorist insurance may keep you and your fleet from these problems.
It's important to note that this only works when the other party is at fault for the accident.
6. Truck cargo insurance
Often, the most valuable asset in your business is the cargo you haul.
Truck Cargo coverage insures the contents of the trailer, temperature-control machinery, and other appliances or accessories that keep cargo secure.
