Businesses that rely on trucks for transportation need to make sure they have the right types of insurance coverage in place.

Commercial vehicles require commercial vehicle insurance, while the cargo being transported needs to be covered with cargo insurance. Combining both of these types of insurance ensures that the business is adequately protected in the event of an accident or other damage.

In this blog post, both types of insurance will be discussed, along with why you need both to keep your business safe.

Commercial Vehicle Insurance

Commercial auto insurance is a type of auto insurance that covers vehicles used for business purposes, such as delivery vehicles, company cars, or any other vehicle used to transport people or goods for business purposes. 

Basically, the insurance is designed to protect the business from liability in the event of an accident or other damages caused by the vehicle. Generally, commercial auto insurance will cover the cost of damage to the vehicle, medical expenses for any passengers injured in the accident, and liability for any property damaged in the accident. 

The coverage may also include uninsured/underinsured motorist coverage, which protects the business if the other party in the accident does not have insurance or lacks adequate coverage.

Cargo Insurance

Trucking cargo insurance is another type of insurance specifically designed to cover the goods being transported by a truck. This coverage is necessary to protect against potential losses due to theft, damage, and other hazards while in transit. 

Cargo insurance is designed to provide financial protection to the owner of the goods, the trucker, and any other parties involved in the transportation process. It can cover the cost of replacing or repairing the goods, legal fees, and other expenses related to a cargo loss.

You Need Both

As a truck driver, you know that you need insurance protection for the truck(s) that you use to make a living. But, you also need to make sure that you are getting adequately covered in both component areas.

If you are found to be underinsured, it could lead to the loss of your business. This is because you may be unable to pay for liabilities, damages, and medical bills that arise from an accident.

Additionally, you could be sued by the people who own the cargo that you're transporting. In fact, more and more companies require truckers to insure the cargo before they will allow it to be transported.

Contact a trucking insurance service to find out more.