Last Updated on August 13, 2022 by
If you operate a trucking business, you need to have proof of insurance ready at all times. When you need to seal the deal with a contractor, a COI provides evidence that you’re covered. And when you’re in a bidding war for a job, you need all the leverage you can get.
The benefits of a COI don’t end there, either. Stick around to find a brief guide to why a certificate of insurance is critical for your trucking business!
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An Insurance Certificate Summarizes Coverage
When you need an efficient way to show anyone your current coverage status, a COI does the job. This one-page document identifies the insured party and the insurance agent. It also outlines the different coverages provided.
Further, a COI talks about the business, including the vehicles and drivers involved. And you’ll see a signature from the agent or broker overseeing the policy.
Know Your Trucking Business Insurance Requirements
As a general rule, you need to have general liability trucking insurance. You’ll be safe in case of personal injury, damage to property, or bills for medical needs. In other words, this type of insurance is a good catch-all.
The Federal Motor Carrier Safety Administration stipulates that you need insurance. And for a trucking company, you’ll need to factor in ongoing insurance costs as part of your business plan. Policies can cost thousands of dollars annually!
You’ll be able to show a certificate of liability insurance to clients to provide peace of mind. As a business owner, you can gain peace of mind by checking and retraining drivers on a routine basis. This will keep their driving records spotless and may save on insurance premiums.
Contact Your Provider for a Certificate of Insurance
How do you get an insurance certificate? Start by contacting your insurance agent. They’ll be able to guide you toward the essential trucking business insurance coverages to include.
For instance, an agent may recommend adding to your primary liability to protect the business, too. Physical damage trucking insurance coverage only covers the truck.
Amend a COI as Your Company Grows
You can add or subtract insurance add-ons to suit company growth or client demands. For instance, you may want to add mechanical breakdown coverage to avoid paying as much from your savings. For trucks that are aging, this can be helpful.
Or you might want on-hook coverage if you’re using trucks owned by your client. This trucking insurance protects the vehicles you operate but don’t own. Similarly, passenger accident coverage will keep the driver covered even if an uninsured individual is in the truck, too.
Additionally, you may need to add names as certificate holders. For instance, partner businesses may ask to be added. And you may need an updated COI when you enter a contract with a new business.
Get Proof of Insurance
A certificate of insurance is a concise way to assure a business that you have coverage. You may need multiple copies for multiple drivers. And you may need to adjust your coverage to suit employer demands.
Need more business tips? Check back for more articles.
Read More: Things to Consider before Hiring a Trucking Company
