Is Commercial Truck Equipment Insurance Necessary?
Understanding who needs coverage and for what purpose is trickier for some than others. Some vehicles used for personal use would be commercial if driving for business intent. Thankfully, if you own commercial truck equipment used for shipping freight, it narrows down your options substantially. This is because you’re using your freight truck for business intent, such as making deliveries and transporting goods. Commercial truck equipment insurance covers a lot compared to an SUV or sedan since there are a lot more expensive, hard-to-replace components that could be damaged in a crash.
What Is Commercial Truck Equipment Insurance?
Your operation may have just a single vehicle or a large fleet, but either way, you’ll need proper insurance to protect yourself and your drivers. There are countless risks involved in trucking and transport. Insurance liabilities for your trucking business include your customers, drivers, fleet, and even other drivers on the road. Proper commercial truck equipment insurance helps protect your company against devastating events that could otherwise put you out of business.
Commercial truck insurance is a specialized group of auto insurance policies tailored to trucking operations. Very basic insurance packages would just cover the event of an accident, whereas collision and more comprehensive coverage will protect you considerably better. If you’re an independent truck owner, fleet owner, or a business with trucking transportation, you’ll need this type of insurance.
Who Enforces Trucking Rules & Regulations in BC?
The BC Ministry of Transportation Commercial Vehicle Safety and Enforcement (CVSE) branch is responsible for identifying and enforcing compliance regulations with commercial trucks and transport. Heavy commercial trucks are considered to be more than 11,795kg, which is an international standard minimum weight. These trucks include but aren’t limited to dump trucks, tractor-trailers, logging trucks and more. Vehicles below this weight are in the 5,000 - 11,794kg category and include delivery vans, 1 tons pickups, and other delivery vehicles.
The point is that the CVSE can pull over trucks at weigh scales and roadways if they see or notice safety concerns. It’s vital that you and your drivers comply with their rules and guidelines. Having the correct insurance if you’re pulled over is crucial to avoid fines and possible transport downtime.
How Much Could An Accident Cost Without Proper Commercial Truck Equipment Insurance?
In the United States, the fatality rate per vehicle mile traveled is 50% higher in commercial trucks than in all highway vehicles combined. The Federal Motor Carrier Safety Administration estimates the average accident cost for medium to heavy trucks was about $148,279. The numbers do scale much higher when there are larger, multi-trailer trucks involved (The average cost for them is over half a million dollars).
There are direct and indirect costs associated with accidental damage. Consider direct costs like cargo damage, vehicle damage and towing costs. Other direct costs include injury, medical, and your business’ loss of revenue. Indirect costs associated with a commercial truck accident include anything beyond the initial accident. For example, loss of clients and sales, salaries paid to employees in the accident, legal proceedings, and even possible vehicle replacement would be indirect costs.
This is why it’s more important than ever to have the proper commercial truck equipment insurance. The risk of damage to others, their vehicles, your vehicles and your business is a major factor to consider when purchasing trucking equipment insurance.
How Can I Stay Protected & What Type of Insurance Is Offered?
You understand just how vital it is to have an all-encompassing insurance package for your trucking business. You may ask yourself, what kind of trucking equipment insurance is offered in BC?
At Blue Capital Equipment Finance, we offer comprehensive insurance products for your single or your commercial fleet. We offer Commercial truck equipment solutions such as mechanical downtime protection, accident downtime protection, write-off protection, deductible buy-down coverage, truck cargo insurance, and fleet insurance. For instance, if your truck gets into an unfortunate accident and it cannot operate, having accident downtime protection on your insurance package would provide a benefit of up to $1000/week for up to twelve weeks while it’s being repaired.
If you’re wanting to ask us about our commercial truck equipment insurance options, don’t hesitate to contact us to find out more.