Four Basic Elements of a Commercial Insurance Policy

Insurance Blog

It is essential to know what you are getting when you purchase a commercial insurance policy when it comes to commercial truck insurance. The basic coverage you get will vary from what you are used to with a personal auto insurance policy. 

Bodily Liability Coverage 

To start with, you are going to need bodily liability coverage. If you get into an accident with another vehicle, your insurance will cover their medical costs. Commercial vehicles can cause really big accidents and injuries, so you will want to go for a higher limit on your bodily liability coverage if possible. 

If you are sued due to the damage you cause to another person while in a commercial vehicle, this part of your policy will also pay for your legal defense.  

Property Damage Liability Coverage 

Not all accidents expenses revolve around people. If you are responsible for hitting a vehicle, and it comes out of the accident totaled, your property damage liability coverage will pay to replace the vehicle. Or if you hit a guardrail and have to replace it or run over someone's fence, that is where your property damage liability coverage comes into play. Like with bodily liability coverage, a big vehicle can cause a lot of damage, so go for a larger coverage limit over a smaller coverage limit.  

Medical Payments 

It is important to look out for yourself as well. With medical payment coverage, which also goes by the name of personal injury coverage or no-fault coverage, depending on the state in which you are based, no matter the name, the basis of the coverage is the same – ensuring that if you are involved in an accident, that your medical bills will be paid, as well as that of any passengers if you have a co-worker riding along with you.  

Cargo Coverage 

When you are hauling cargo, you want to ensure that it is protected. With cargo coverage, if you get into an accident or something happens while driving that results in your cargo getting damaged, you can get financial assistance to pay to replace it. That way, you do not have to pay out of pocket for damaged cargo. 

When it comes to commercial truck insurance, you will want to ensure that you have high coverage limits. High coverage limits will help ensure that you can pay for any damage your vehicle may cause and will help to protect you from being held personally liable for damage while driving a commercial truck.  

10 January 2022