A huge part of the business world relies on transporting items from one place to another. For those needs, box trucks offer a reliable solution. That said, people can move homes without many problems, and products can go from their distributors to retail stores all over the country.
If you own a box truck, what type of insurance for owner-operators should you get? Below is everything you need to know about box truck insurance.
Box truck insurance is a commercial auto insurance policy that offers protection to box trucks, particularly liability coverage. In some cases, they also come with collision and comprehensive coverage, but the extent is dependent on the insurance provider.
It is a requirement across all states, and each state has its own specific specifications on the extent of coverage. Because of this, it may be better to get higher coverage limits to protect your trucks wherever they may be.
Box trucks are commercial vehicles that have a separate cab and cargo area. The main reason why it got its name is that its cargo area looks just like a box.
Here are the most common types of box trucks:
The primary coverage for box truck insurance includes property damage liability and bodily injury liability. However, there are numerous optional coverages, including cargo insurance and collision damage, among many others.
Here are the most common types of box truck insurance coverages that you must get for your business.
The most common coverage of box truck insurance is liability insurance, commonly made up of two main types.
First, it covers bodily injury to drivers and other people you may hurt on the road. It will cover all costs of injuries resulting from an accident by you or your employee while driving your box truck. Liability insurance also covers the costs of damages you make to other people’s property.
Non-trucking liability covers liability-related costs when you cause an accident in your box truck while not on dispatch. This coverage is important for for-hire box truck drivers or those on permanent leases to a motor carrier.
It also kicks in when you use your box trucks during your day off, like picking up groceries, going to the movies, attending events, and other purposes. The coverage extends to medical expenses associated with injuries to people and damage to property caused by your truck.
Collision insurance covers the damage to your box truck in the event where it encounters a collision with another vehicle. The coverage may extend to the cost of replacement and repairs for your vehicle.
For example, collision insurance covers situations like your box truck hitting a tree, rolling over, hitting a pothole and getting damaged, and colliding with another truck.
Comprehensive insurance covers the damage to your box truck caused by events like hail, theft, vandalism, and other events not collision-related.
For example, comprehensive insurance covers situations like an animal colliding with your box truck, a fire, storm, or another natural disaster hitting your vehicle, fruit from a tree falling into your box truck, people vandalizing your truck, and similar situations.
Under-insured motorist coverage is an add-on to your box truck insurance policy. It protects you if you get into an accident with someone who doesn’t have sufficient insurance to cover their needs.
Once you file an insurance claim with your provider, it will contact the other driver's insurance provider. If the other driver involved in the accident does not have enough insurance to cover your expenses, the under-insured motorist coverage will satisfy your needs, up to the extent of the limits of your policy.
Progressive Commercial offers Motor Truck General Liability, Non-Trucking Liability, Physical Damage Coverage, Motor Truck Cargo Insurance, with add-ons and customization options available.
Freeway Insurance offers Liability, Cargo Insurance, Collision, Comprehensive, and Non-Trucking Liability coverages.
Loomis Insurance offers Liability and Cargo Insurance for box trucks.
Northern Insurance Specialists offer Reefer Breakdown, Liability, Medical Payments, Physical Damage, and Underinsured/Uninsured Motorist Insurance coverages.
USA Business Insurance Services offer Liability Insurance, Medical Payments, Physical Damage, and Underinsured/Uninsured Motorist Insurance coverages.
Box trucks, also known as straight trucks or cube vans, have a separate freight compartment. This compartment is divided from the truck’s front cab, which is where the driver sits.
Box truck drivers need to have a valid driver’s license, a clean driving record, and familiarity with the neighborhoods they will operate in.
Owning a box truck opens opportunities to work for yourself with a job that is rewarding and well-paid. This makes box truck driving an appealing opportunity for those looking to get away from the typical 9-5 job routine.
Box trucks can be quite top-heavy, thereby increasing the risks of roll-over accidents (especially if the cargo inside suddenly shifts due to a hard maneuver). It also goes without saying that these box trucks can present a huge danger when colliding with passenger vehicles.
Cargo insurance covers the customer from instances of damage or theft, while freight insurance protects the freight forwarder.
Box truck insurance is an essential requirement for your business operations, so make sure you comply with them. That said, you should consider add-ons to your coverage so you can protect your business more against potential losses.
Learn more about commercial truck insurance policies by exploring the rest of Assured Standard today!