Trucking business insurance: What it covers and what it costs

What insurance does a trucking business need?

There are a variety of insurance policies for trucking business owners, including:

General liability insurance

General liability insurance covers claims of bodily injury, property damage and advertising injury. This policy covers settlements or judgments, your legal fees and court costs.

Business owner’s policy

A business owner’s policy (BOP) is a bundle that combines general liability insurance and commercial property insurance at a discounted rate. Commercial property insurance covers damage to business inventory and physical office spaces, like a dispatch center.

Workers’ compensation insurance

Workers’ compensation insurance covers employees’ medical treatment and partial lost wages if they get sick or injured while working. This policy is required in most states for trucking businesses with at least one employee.

Commercial auto insurance

Commercial auto insurance covers a truck driver’s financial responsibilities if they cause an accident while driving a business-owned or leased truck. Like personal car insurance, business auto insurance is a legal requirement for truckers in nearly every state.

How much does trucking insurance cost by month and year?

Here’s a look at the average cost of commercial trucking insurance by policy type, based on rate data from small business insurance broker Insureon:

In addition to the above, Insureon notes that the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration requires trucking business owners to have certain insurance coverage, which depends on the vehicle and the cargo. You can find out more on the FMCSA website.

Small business insurance companies that serve truckers

Here are just some of the commercial insurers that sell coverage to trucking businesses:

• Geico: Geico has many policy options for trucking business owners, including general liability, motor truck cargo, non-trucking liability and trailer interchange coverage.
• Nirvana: With a trucking insurance policy from Nirvana, your insurance premium is based on miles driven rather than a flat monthly fee. The company offers a discount of up to 20% for having a safe driving history. Business owners can also take advantage of Nirvana’s Active Safety Solutions, which use AI and fleet telematics to help reduce risk and improve driver safety.
• Northland: Northland Insurance, a division of Travelers, exclusively insures commercial trucking businesses. Trucking business owners can get general liability insurance, motor truck cargo insurance, roadside assistance and towing coverage, and other policies. 
• Sentry: Sentry offers flexible insurance solutions for businesses in the trucking industry. The company says it insures more 50,000 truck drivers. Some of the policies available include physical damage insurance, non-trucking liability insurance, general liability insurance and cyber liability insurance. 

How to compare trucking business insurance companies to get the best coverage

There are dozens of insurance companies that sell coverage for trucking businesses. However, not all insurers are created equal. To find the best trucking business insurance carrier, it’s important to compare multiple companies. Follow these steps to find the best insurance company for your business:

1. Coverage options: Every trucking business has different insurance requirements. When comparing companies, look at the coverage options available and choose an insurer that offers the types and amounts of coverage you need based on your potential risks.
2. Third-party ratings: Third-party ratings can help you better understand an insurer’s customer service reputation and overall customer satisfaction. It’s a good idea to check company ratings from reputable industry organizations, like J.D. Power and the National Association of Insurance Commissioners (NAIC).
3. Financial strength: Choose an insurance company that has an excellent or superior financial strength rating from AM Best. Financially stable insurers are able to meet policyholder obligations and pay claims. Companies that aren’t financially strong are at a higher risk of bankruptcy and may have a harder time paying claims.
4. Online tools: If you prefer to handle your insurance needs online, look for insurance companies that offer online tools, such as online policy management, online claims, live chat and risk management resources.
5. Cost: Before you purchase business insurance, get personalized rate quotes from a few different carriers. This will help you find the cheapest premium for the type and amount of coverage you want.

How to get the best coverage for your small business

Use these strategies to get the best insurance coverage for your business:

1. Consider your unique risks: Think about the risks that your business faces based on your industry, services, location and number of employees. Purchase policies that cover the potential risks you face, and choose coverage limits that offer adequate financial protection.
2. Find out what coverages are required: Your business might be required to carry certain types of insurance to satisfy local laws, client requirements or lease agreements. Make sure to get the policies you need and provide certificates of insurance to relevant stakeholders, like your landlord.
3. Read the fine print of your policy: Every commercial insurance policy has different exclusions. It’s important to read the fine print of your policy so you understand what is and isn’t covered. You might need to purchase other policies or add endorsements to fill gaps in your basic coverage.
4. Compare quotes: The cost of business insurance depends on many factors, and some policy types are more expensive than others. Before you purchase any insurance policy, compare quotes from at least a few different insurance companies to find the best coverage at the most affordable rate.

What our expert says

Q: What’s one of the big benefits of having the right small business insurance?

Brian White Vice President of Product Strategy at specialty insurer AmTrust Financial

"The right insurance policies enable stability and peace of mind, allowing business owners to focus on what they are most passionate about and do best – growing and running their business – without fearing how these unexpected events could impact them financially."