What Is Trucking General Liability?

May 31, 2022

Trucking general liability insurance is different from most types of insurance. It pays for claims that arise from accidents that happen while you are operating a truck or trailer.

The coverage provided by trucking general liability insurance is limited in scope. For example, it does not cover loss of earnings or medical bills. 

What Is Trucking General Liability

In this guide, we go through everything you could need to know about trucking general liability insurance so you can make an informed decision whether you would benefit from this insurance.

Trucking insurance protects commercial drivers from bodily injury or property damage caused by accidents involving their vehicles. The coverage typically covers the driver, passengers, cargo, and other vehicles involved in the accident.

Trucking General Liability Insurance is designed to cover the costs associated with injuries or damages sustained by third parties due to the negligence of the insured truck driver. GLI also provides protection against claims arising out of the operation of the vehicle itself.

What Is A Commercial Driver’s License?

A commercial driver’s license is required for anyone who drives a commercial motor vehicle, including trucks, tractor-trailers, buses, and recreational vehicles.

A commercial motor vehicle refers to any vehicle that is used on public roads and highways for transporting people or goods. A commercial driver’s license holder can drive any type of commercial motor vehicle as long as it meets federal safety standards.

You should get Trucking General Liability when you first obtain a commercial driver’s permit. You can renew this policy every three years.

The Difference Between Trucking Auto & Trucking General Liability Policies

Auto policies generally cover only the owner of the vehicle. They do not include coverage for others using the vehicle.

General Liability policies, however, protect both the owner and those using the vehicle. These policies cover individuals who use the vehicle but are not necessarily the owner.

If you already have auto insurance, you probably don’t need Trucking General Liability. However, if you don’t have auto insurance, you may want to consider getting Trucking General Liability.

If you have auto insurance and decide to add Trucking General Liability, you can combine the two policies into one.

How Trucking General Liability Works

When you purchase trucking general liability insurance, it protects you against claims made by others because of your negligence. Negligence means doing something wrong that causes harm to other people.

When you operate a truck or trailer, there is always the possibility that you will cause an accident. If you do, then someone may make a claim against you.

You must pay for these claims even if they were caused by someone else’s negligence and you should have enough money to pay any claims that you might be liable for. Your premiums are based on how much risk you pose to other drivers.

Risk is determined by many factors including:

  • How often you drive
  • How long you spend driving each day
  • How fast you drive
  • Whether you carry cargo or passengers
  • Where you drive
  • The type of trucks you drive
  • The type of trailers you drive
  • The age of your vehicles
  • The condition of your vehicles

General Liability Claims

Trucking General Liability claims arise out of accidents that occur while you are operating your truck. There are several different types of claims that can result in a claim.

Types of Accidents That Could Result In A Claim

  • Collision – An accident caused by another vehicle.
  • Rollover – An accident where your truck overturns.
  • Upset – An accident caused by an object falling off your truck.
  • Fire/Explosion – An accident involving fire or explosion.
  • Loss Of Use – An accident causing damage to your truck or equipment.
  • Damage To Property – An accident causing damage outside your truck or trailer.
  • Personal Injury – An accident resulting in injury to someone else.

Trucking General Liability Insurance Limits

There are two limits that apply to trucking general liability. These limits are $1 million per occurrence and $2 million aggregate.

$1 Million Per Occurrence Limit

This limit applies to damages arising out of bodily injury or property damage. It does not cover loss of use, medical expenses, or legal fees.

$2 Million Aggregate Limit

This limit applies to damages arising from personal injuries. It also applies to damages arising from property damage. The limit applies regardless of whether the total amount of all losses exceed $1 million.

Cost Of Trucking General Liability Coverage

Trucking General liability premiums vary depending on factors such as your age, driving record, number of miles driven per year, and more. Your agent will be able to provide you with an estimate based on these factors.

How To Save On Costs

There are many ways to save money when insuring your truck. Here are a few tips:

Shop Around

Choose the right insurance carrier. The best carriers offer competitive rates and superior service. Make sure that you shop around and compare quotes from multiple carriers before making a decision. 

Also, make sure that you review all endorsements as some carriers charge extra fees for certain types of coverage. Make sure you understand what each endorsement covers. Many carriers offer discounts for good drivers, safe drivers, and young drivers. Ask about them!

Consider Bundling

Bundling saves money because you pay less for the total amount of insurance than you would pay separately.

Contact your agent. Let him know how much you are saving so he can help you find additional savings.

Stay Informed

Make sure that you know your rights and read your policy carefully. If you have any questions, contact your agent. It is also important to keep up with changes in regulations. Changes in regulations could affect your premium. For example, new laws regarding hours of service require you to keep track of your driving time.

Who Needs Trucking General Liability Coverage

Anyone who owns a commercial motor vehicle must have at least $750,000 of Trucking General Liability insurance. This includes truck owners, operators, brokers, and companies that lease trucks.

The following are some examples of entities that may need Trucking General Liability:

  • A company leasing trucks
  • An individual operating his/her own truck
  • A broker who leases trucks
  • A company that operates its own fleet of trucks
  • A company whose employees operate their own trucks

Who Is Covered By Trucking General Liability

The following people are covered under trucking general liability:

  • You as the named insured.
  • Your employees.
  • Any person using your truck or trailer. This includes family members, friends, business partners, etc.
  • Anyone who uses your truck or trailer for commercial purposes.
  • Anyone who rents your truck or trailer. Renters are considered part of your “employees” and are covered under this type of insurance.
  • Someone who borrows your truck or trailer. Borrowers are considered part of “your employees” and are covered.

If you are not listed above, then you are not covered.

Why Should I Get Trucking General Liability Insurance?

Trucking general liability insurance helps protect you from lawsuits filed by injured parties. It also protects you from claims arising from accidents that occur while you are driving and covers your liability to third parties, and other drivers, when their property is damaged due to your negligence.

Trucking general liability insurance also covers you when you rent a vehicle from another company and ultimately it can help reduce your premium costs.

Final Thoughts

If you think you fall into the category of someone who would benefit from this type of insurance, speak with your insurance company today.