Many people today are choosing to go into the cargo trucking business. With the economy still recovering and the resurgence of oilfield drilling and commercial manufacturing, trucking companies are popping up all over the country and offering benefits with plenty of work for those willing to haul anything and everything from appliances to produce to petrol. Hauling cargo requires insurance coverage, just as with your personal vehicle, but deciding what sort you need can be confusing.
What Does Specified Perils Insurance Cover?
If you are a small trucking company, or if you have very specific cargo, specified perils coverage might be the most economical choice to make. Specified perils coverage is exactly what it sounds like. It protects you from a specific set of perils that might befall your cargo or truck. The key here is to carefully read exactly what is covered and what contingencies might cause those perils to be excluded. This type of insurance is really customized and is intended to help save the insured from the higher cost of more comprehensive coverage. Think of it as tailor-made insurance, just for what you need and nothing more.
What Does Broad Form Insurance Cover?
Broad form insurance coverage, as its name suggests, covers a much broader range of perils than the specified perils insurance. Basically, the insurance will cover any and all losses incurred by the company, with the exception of very specific conditions or exclusions discussed and agreed upon prior to the coverage taking effect. Exclusions usually include personal items, such as money, personal technological devices, such as cell phones or stereos, and other such items. There are, however, certain items you might consider adding back into the coverage, depending on the territory you are driving or working in. If you are driving through an area prone to tornadoes during prime tornado season, you would want to consider earned freight coverage, as well as debris removal. That way, if your cargo is blown off the road and lost or damaged, you will be paid for it and be covered for the cost of cleanup!
Which Form Of Insurance Best Suits Cargo Trucking?
This is really up to the insured and should be based on the needs of the company. Deciding between specified perils insurance and broad form insurance for your cargo trucking company depends entirely upon your company's needs, what you will be carrying, how far you will be transporting that cargo, and the areas in which your drivers will be parking the cargo overnight or when they take breaks. Regardless of which type you decide is best for your company, be sure to look for what is specifically covered in a specified perils policy and, conversely, look for what is specifically excluded in the broad form policy.
Give Shipman Insurance Agency a call at 903-297-4456 and let us help you with your Texas trucking insurance today!