Commercial insurance is a vital part of your commercial trucking operation. It's imperative that you are properly covered. While there are a number of factors to consider when choosing a commercial truck policy, there are a couple key elements that you don't want to overlook. Here are just two of the factors you should consider when shopping for a new policy.
Choose the Right Deductible Option
Commercial truck-insurance policies generally give you the option of choosing between a per-vehicle and a per-occurrence deductible. A per vehicle deductible looks alluring because the number is smaller, but in the event of widespread damage, this policy isn't necessarily the best option.
For example, consider an insurance company that offers a $4,000 per-vehicle deductible option or a $30,000 per-occurrence deductible. To put this in better perspective, consider a company that has 15 service trucks. Say a storm came through, causing substantial damage to all the vehicles. With a per-vehicle policy option, the company would have to pay a total deductible of $60,000. However, with a per-occurrence deductible they would only be required to pay $30,000. The difference between the two is significant. When choosing a deductible option, make sure you are thinking about the big picture, not just the lower figure.
In some instances, a policy will have a range-of-operation restriction in place. It's important to be mindful of this information. For example, a policy might have a range-of-operation restriction that limits the coverage area for your commercial trucks to 500 miles. With this type of policy limit, your trucks are only covered when they are traveling within this area. Should they venture outside this area and an incident occur, coverage won't be extended.
If this feature is included, you need to know exactly how large the mileage radius area is. If part of your business model involves the need for your trucks to travel outside the offered mileage radius, don't choose a policy with this type of limitation. It's also important to mention that some polices that do have this coverage limit do have certain situations in which coverage is extended, even if you are outside the mileage radius. Make sure you know what these situations include.
Make sure you are taking your time when choosing your policy in order to ensure you are being paired with the best policy for your business. An experienced agent can assist you with this process. For more information, consult an insurance firm such as Metropolitan Insurance Service Consultants.