Purchasing commercial truck insurance is more than a legal requirement to have your trucks out on the road. It's an investment you make in your company. You need to avoid mistakes when you purchase commercial truck insurance to protect your company financially. Here are six mistakes to look out for.
Only purchasing the minimum coverage you need
You might want to purchase more than the minimum coverage amounts required by law. If you can increase your minimum coverage amounts significantly without spending a lot more on premium costs, you might want to do so.
Higher coverage minimums give your company more financial security if you ever do need to file a claim on your commercial policy.
Getting only one estimate
Your commercial truck insurance premium is going to be an important and significant expense each month. You should do what you can to maximize the value your company gets from your insurance policy by comparing estimates offered from different providers before buying a particular policy.
Not setting up automatic payments
Most commercial insurance providers have electronic funds transfer (EFT) capabilities that will allow your payments to automatically come out of your company's bank account. In fact, a lot of providers will even offer you a discount on your premium payments if you do this.
Overlooking insurance coverage details of contracts you have with clients
With commercial trucking operations, clients often require that you have certain types of coverage so that you can do business with them. In particular, clients might require you to have your cargo insured so that you'll be paid for the value of their product in the event of an accident where cargo is damaged.
Neglecting to read through your policy
Commercial trucking insurance policies can be complicated and detailed. It's important that you understand your policy thoroughly so that you know exactly what you're covered for. Read over your policy carefully so that you're aware of all the particulars and can make changes if necessary.
Failing to discuss coverage for other drivers who work with you
If you have other drivers driving your trucks and working for your commercial operation, you need to make sure that they're covered on your policy.
Make sure you discuss multiple drivers on your policy with your insurance company. You're probably going to need to submit the driving record of all your drivers to your insurance company to get them covered on your trucks.