If you're an individual owner-operator of a commercial truck or your company owns and uses commercial delivery trucks, you need to understand the various types of insurance that are available to you. Local laws will determine the types you're required to carry, but you may also want to consider additional coverage options as well. Consider the various types of truck insurance available so you can opt for the best coverage without paying for insurance you don't think you'll actually need.

Physical Damage

This coverage includes the truck cargo area and the trailer. In many areas, this type of coverage is not required by law, but if you still have a loan out on the truck, it's usually required by your lender. It's also good to consider this insurance even if not required so you can be reimbursed for the truck's value in case of an accident or rollover.

Primary Auto Liability

This type of coverage is often required by law even if you're leasing your truck or trucks. If another person is injured in an accident, this liability insurance covers those damages. For those who are leasing their vehicles, it's good to ask the leasing company who is responsible for this liability insurance, as you may be able to work the cost into your lease payments.

Cargo Insurance

This protects any freight you are carrying while it's in transit. Be careful about choosing cargo insurance, as it's not usually required by law or a financing lender, but it's typically required by your customers. There are often exclusions to this insurance that you need to note carefully, such as theft limitations on liquor, electronics and even garments. Most carriers will also have exclusions on unattended vehicles. Be sure you understand what is covered and the limits, and when your cargo may not even be insured by your carrier.

Non-Owned Trailer Coverage

Non-owned trailer liability insurance covers accidents when the truck is not being used for deliveries, and non-owned trailer physical damage covers a truck that you don't own and are driving for someone else. These coverage amounts are typically very low and not usually required by law but may be good choices if you don't actually own your truck.

Note that general liability insurance is often offered to truck drivers and companies that own trucks, but this type of coverage is meant for the business itself. For owner-operators, this can be a good type of coverage to have if you work under a business name, but it doesn't actually cover your cargo or the truck.

For more information, contact a company such as Austbrokers RWA.