Texas requires commercial truck insurance to operate any motor vehicle that has a gross weight of over 10,000 pounds.
The minimum insurance requirements for commercial trucks in Texas include
Liability insurance:
Commercial trucks must have liability insurance that covers bodily injury and property damage caused by the truck. The minimum liability coverage required in Texas is $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for property damage.
Cargo insurance:
Cargo insurance is a type of insurance that protects the goods and merchandise being transported by a commercial truck against loss or damage during transit. This insurance is designed to provide coverage for the value of the cargo and is typically purchased by the owner of the goods, rather than the trucking company. Cargo insurance is important for several reasons. First, it can protect against financial losses resulting from damaged or lost goods, which can be costly for both the owner of the goods and the trucking company. Second, it can help build trust with customers by demonstrating that you take their cargo security seriously. Finally, cargo insurance can help you meet legal or contractual requirements related to the transportation of goods.
Workers’ compensation insurance:
Workers’ compensation insurance is a type of insurance that provides benefits to employees who suffer job-related injuries or illnesses. In Texas, employers who have one or more employees are required to carry workers’ compensation insurance. This includes commercial trucking companies that have employees who drive their trucks.
Workers’ compensation insurance provides several benefits to both employees and employers. For employees, it can provide medical care, wage replacement, and disability benefits in the event of a work-related injury or illness. For employers, it can protect against lawsuits related to workplace injuries and help to reduce the financial impact of work-related injuries.
In Texas, workers’ compensation insurance is administered by the Texas Department of Insurance, Division of Workers’ Compensation. Employers can purchase workers’ compensation insurance from private insurance companies or through the Texas Workers’ Compensation Assigned Risk Pool, which provides coverage to businesses that are unable to obtain coverage in the voluntary market.
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Bobtail insurance:
Bobtail insurance is a type of insurance coverage for commercial truck drivers who operate their vehicles without a trailer attached. It provides liability coverage for accidents that occur while the truck is being driven without a trailer. Bobtail insurance is important for trucking companies and owner-operators who occasionally operate their trucks without a trailer, such as when driving to or from a job site or returning an empty trailer to its point of origin.
Bobtail insurance is not the same as non-trucking liability insurance, which covers accidents that occur when the truck is being used for personal purposes and not in the course of business. It's also different from primary liability insurance, which provides coverage for accidents that occur while the truck is being used with a trailer attached.
Physical damage insurance:
Physical damage insurance is a type of insurance coverage that provides protection for commercial trucks against damage or loss caused by accidents, theft, vandalism, or other perils. This insurance is designed to cover the cost of repairs or replacement if your commercial truck is damaged or stolen.
Physical damage insurance typically covers two main types of damage:
collision and comprehensive. Collision coverage provides protection for damage caused by a collision with another vehicle or object, while comprehensive coverage provides protection for damage caused by non-collision events such as theft, fire, vandalism, and weather-related damage.
The cost of physical damage insurance will depend on several factors, including the value of the truck, the level of coverage selected, the driver’s experience, and the company’s claims history. It's important to work with a licensed insurance agent to determine the appropriate level of coverage for your business.
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Physical damage insurance is important coverage for commercial trucking companies, as it provides protection against potential losses resulting from accidents or other perils. Without this coverage, the cost of repairing or replacing a damaged or stolen truck could be significant and could have a significant impact on the financial health of your business.
Conclusion
In conclusion, commercial truck insurance is an essential component of operating a successful trucking business. There are several types of insurance coverage that trucking companies should consider, including liability insurance, cargo insurance, workers’ compensation insurance, bobtail insurance, and physical damage insurance. Each of these types of coverage provides protection against different risks and liabilities, and trucking companies need to work with a licensed insurance agent to determine the appropriate level of coverage for their business. By ensuring that you have the right insurance coverage in place, you can protect your business and your employees against potential financial losses and liabilities, and help ensure the long-term success of your commercial trucking operation.
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