What does a Commercial Auto Liability Insurance Policy Cover?

There are three types of damages that a Commercial Auto Liability insurance policy traditionally covers in an accident involving a covered vehicle: bodily injury, property damage, and pollution cleanup. This policy protects your business if, while driving for the company, you or one of your employees causes injury or damage to another party and are deemed to be at fault for the crash.

How do I purchase Commercial Auto insurance?

To start, make a list of all the equipment that you need to have covered in your policy. Then request a quote with an agent who can create a customized policy that covers all of your vehicles, equipment, property, and employees.

Is Truck towing insurance covered by my policy?

When you break down on the road, towing is not covered by your trucking insurance policy. However, a mechanical breakdown is covered in Great West’s Choice Coverage® Plus endorsement. The endorsement covers towing and/or roadside labor to a covered auto that is disabled due to a mechanical breakdown.

Does my trucking company need Workers Compensation insurance?

Workers Compensation insurance covers medical care and benefits for an employee after an injury on the job. Most states require that companies carry Workers Compensation insurance. However, this coverage is recommended for all companies, regardless of where they are located.

Frequently Asked Questions | Great West Casualty Company

Your Questions about Trucking

Answers to your insurance product and service questions

Below you will find frequently asked questions about trucking insurance products and services from Great West Casualty Company. Find answers to some of the most common questions that new and experienced truck drivers have about our products.

Whether you're looking for information on what types of trucking insurance are available, how to find the right coverage for your needs, or even how to get started in the trucking industry, we have the answers you need.

We hope this page helps you get the information you need to make informed decisions about your trucking business. If you have additional questions, feel free to reach out to an agent, who can answer all your questions.

How much does a Truck Insurance policy cost?

We are often asked “what is the cost of semi truck insurance?” Many factors contribute to the pricing of a truck insurance policy. Value is chief among them – essentially, what is included in your coverage. However, there are a few big factors that motor carriers can control. The biggest is your safety record and workplace safety efforts. An additional factor is the experience of your drivers and the number of years you have been in business. Finally, the use of technology and the condition of your equipment play a role. Read more here about other factors that can affect the price of your policy.

How much insurance do I need for my trucking company?

The FMCSA stipulates how much insurance you need based on what you haul. It’s a good rule of thumb to carry no less than $750,000 in Auto Liability coverage. However, many shippers and brokers require you to have a liability limit of at least $1,000,000 regardless of what type of material you haul. To receive operating authority and a motor carrier (MC) number, you will need to show proof that you have trucking liability insurance. In practice, however, you should also carry other coverages, such as Cargo insurance, Physical Damage and Non-Trucking Liability insurance. Learn more about getting started with semi insurance here.

Is personal use covered by a Commercial Trucking insurance policy?

Personal use of a truck is not covered by a Commercial Trucking insurance policy, unless it includes an endorsement, such as Non-Trucking Use Liability coverage, formerly called “bobtail” or “deadhead” liability. NTU exposures apply when an owner-operator is no longer operating under the terms of his/her lease agreement, under dispatch of a carrier, or carrying property in any business. Learn more here.

What does stated value versus actual cash value mean?

Stated value reflects the value of a truck as stated on the policy. For instance, if you purchased a trailer for $40,000, and insured it for that value, that would be the limit on payout should you experience an accident. Actual cash value is the actual cost to replace the equipment. With the rising cost of equipment, it may cost $75,000 to replace the same trailer based on current pricing, and you would have to pay the difference between what your policy pays and the cost of the new trailer.

Do I need Garagekeepers Insurance?

Motor carriers may be held legally liable for a loss to a non-owned auto if they do any of the following on their premises: operate a repair shop; provide towing services; store equipment or containers owned by others; or allow other truck drivers to park on their property. For example, servicing an owner-operator’s tractor creates a bailment situation in which the motor carrier can be held liable when the tractor is held in the carrier’s possession. This may include damage to the contents of the vehicle. Learn more about Garagekeepers coverage here.

What’s the difference between interstate and intrastate commerce?

Essentially, interstate commerce means trade, traffic, or transportation in the United States that crosses a state line or between two places in a state as part of trade, traffic, or transportation originating or terminating outside the state or the United States. Intrastate commerce means any trade, traffic, or transportation in any state which is not described in the term “interstate commerce.” But it can get more complicated than that and each can require different insurance policies. Learn more here.