5 Things To Know About Trucking Insurance
Navigating the highways of the trucking industry requires more than just a keen sense of direction and an adeptness at the wheel. It calls for a thorough understanding of the road rules of insurance that keep your business running smoothly. Westins Insurance Brokerage presents a guide essential for every trucker, especially those just entering this bustling industry. Here’s what you need to know:
1. Start Early with Your DOT Number
Before you rev up your engines, remember that securing your Department of Transportation (DOT) number early is a strategic move. It's akin to planting a tree—the best time was yesterday, the second-best time is now. This number is a cornerstone for trucking insurance companies, which tend to approach new authorities with caution. For instance, some insurers in California may not cover companies with a DOT number less than one year old. An aged DOT number can smooth the way for better insurance prospects.
2. Inspect the Insurance Rating
The grade of your insurance provider isn’t just a letter—it’s a testament to their reliability. Insurance companies are rated from A downwards, and those with an A rating are considered robust in financial health and claim payment reliability. Brokers and clients prefer working with carriers backed by A-rated insurers, as it assures them of the insurer's capacity for payout in the event of a claim.
3. Assess the Right Liability Insurance Amount
The Federal Motor Carrier Safety Administration (FMCSA) mandates a minimum of $750,000 in liability insurance, but the industry standard often exceeds this minimum. Brokers typically look for $1 million in liability coverage and at least $100,000 in cargo insurance. Specialty operations, like reefers, have additional requirements, such as reefer breakdown insurance, to consider.
4. Consider Your Radius of Operation
The area you cover with your trucking operations isn't just about geography—it’s about insurance too. Be aware that insurance quotes can be contingent on a specified radius of operation. If your business plan includes long-haul journeys, verify that your insurance policy doesn't confine you to a limited operational radius.
5. Plan for Your Fleet’s Expansion
If you have visions of a growing fleet, you’ll need an insurance policy that can keep pace. Some insurance providers may place a cap on the number of vehicles you can add to your fleet annually. Ensure that your insurance partner is one that will accommodate your growth ambitions without placing unnecessary restraints on your scaling plans.
The trucking insurance landscape is ever-evolving, with terms and conditions that shift in response to the ebb and flow of the industry's tides. It’s imperative for trucking professionals to be prepared for the journey ahead. Obtaining a DOT number and a Commercial Driver's License (CDL) early can pave the way for more favorable insurance rates and options as both age with your business.
At Westins Insurance Brokerage, we’re committed to steering you towards the best insurance policies tailored to your trucking business needs. Our expertise is your best ally in a landscape where knowledge equals power.
Ready to hit the road with the right insurance? Contact us at Westins Insurance Brokerage, and let’s map out an insurance plan that accelerates your success.
Secure your journey today—because at Westins, we’re with you for the long haul.
