Of course, one of the biggest mistakes for your auto business is not having truck insurance. But this is not just the case. As the trucking industry is very wide, so are the chances of risks. To avoid any such risk one must know detailed information on why, how, and what sort of insurance fits your business needs. This blog caters to your doubts!
Numerous insurance options are available in the market for different businesses. The coverage your business requires depends on various factors like industry type, location, number of employees, size of the company, and moreover, owner or operator itself. So, here are going to talk about owner-operator insurance and why it is needed for the auto business.
Let’s get started with further information!
Owner Operator Truck Insurance: What is it?
It is a subset of commercial trucking insurance. Owner operator requires specialized truck insurance services to get protection whether they are operating on the permanent lease of a motor carrier or they own the one under their authority. It is a type of transportation coverage that assist to protect your business as per your business insurance needs. Now the question arises who needs owner-operator insurance?
This kind of insurance is tailored to meet the special needs of drivers in different situations. No matter if you are a long-haul trucker, or an independent owner-operator driving with your own authority or under a lease, you will get benefits for medical needs, to protect the driver’s livelihood, etc. You must be thinking why does someone need this special protection of owner-operator insurance?
Being an owner-operator, you very well understand the reality of a single serious accident or violation of the legal rules that can badly affect your business. And you may face a financial crisis. This type of insurance will protect you, your trucks, and your business against any heavy damage or loss. That’s why you should select suitable owner-operator insurance to smoothly run your auto business. These sorts of insurance policies cover many areas of your auto business. Some of them are:
- Physical damage
- Liability or non-trucking liability
- Worker’s compensation
- Cargo protection
- Medical coverage
- Property damage
Now as you can see owner-operator insurance protects your business against many sorts of risks and damages. To better understand its need for the auto business, let’s dig deep into its details!
Owner-operator insurance has some differentiation as there are two different types of owner-operators, one on the leased motor carriers and the other with the vehicles of their own authority.
Owner Operator With Permanent Lease
When a motor carrier is leased by any owner-operator, they are surely covered under the auto liability insurance of the trucking company. This coverage is especially helpful during loading or dispatching. They also provide damage costs to third-party injuries or any physical or property damage if an accident is your responsibility.
As per your business needs, you can have different types of add-on owner-operator truck insurance coverages, which include:
Trailer Interchange: This will give protection coverage for non-owned trailers.
Non-trucking Liability: This is especially helpful when you are using your vehicle not for dispatching but for personal use.
Coverage for Physical Damage: If your vehicle gets stolen or damaged in an accident, it will cover the cost of replacing parts of your truck or any commercial vehicle or even for its repair.
Owner Operators Under Their Own Operating Authority
If you are operating with your own authority, you will need some commercial truck insurance coverage including:
Physical Damage: You will get coverage for your truck or any commercial vehicle if it gets damaged during any collision or natural disaster or fire accident etc.
Motor Truck General Liability: This one is very important for your business as it will cover the losses and damages of injuries or property caused due to any business activity that is not directly related to the usage of the truck.
Liability: You can get paid for the damages caused to the other people and their property. Bodily injury liability and property damage coverages come under this.
Motor Truck Cargo: You can protect the load you are transporting under this coverage.
Also Read: When a Child Is Moved Out for Auto Insurance Purposes
This is not an inclusive list of this insurance type. There can be specified owner-operator truck insurance requirements before you start to hit your business or vehicles on the roads. Moreover, there are certainly more factors that will decide the type and need of owner-operator insurance for your business:
- Business Type
- Your coverage needs
- Commercial vehicle types
- Operating radius
And many more factors are there affecting the type and cost of the insurance plans. Any business that has vehicles to provide commercial services should have commercial vehicle insurance for sure.
Why Should You Cover Your Auto Business with Insurance?
It is vital for the owners of auto businesses, especially of a small scale to carefully take this into consideration. Being a business operator, you should assess the needs of your business as you may face a financial crisis in the situation of any sort of damage to your commercial vehicles especially. If the owner thinks that he can’t handle the risk or any loss to the business, he should take a suitable insurance package especially owner-operator truck insurance to protect each and every asset of your business carefreely.
Also Read: Car Ownership Factors and Considerations Before You Decide on It
This insurance in the auto business will fulfill the need to protect various transport vehicles used in the process and the person operating them. It is especially helpful in businesses using trucks as their commercial vehicles as they are risky to operate on roads.
Parting Thoughts
That’s all for this blog!
As you have read about owner-operator insurance and its importance for any auto or commercial business. I hope you got your answer to protect your business from any unfortunate circumstances with suitable and necessary commercial insurance.
Keeping your business safe and managed is one thing, but keeping it protected is the most important thing if you want to run it smoothly in the future. You can choose a policy as per your business and the vehicle types used in it. If you still have any queries in mind, feel free to connect with us…We will serve you pleasingly!
Hope you had a great read!
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