As national economies continue to grow, so does businesses. One of the key drivers of business is road transport and especially commercial trucking. You need to consider taking Bobtail insurance to protect your transport business. Since trucks often transport very valuable good, the safety of goods and the vehicle has to be guaranteed. The best way of doing this is through truck insurance.
Benefits of taking truck insurance
Protection from Potential Risks
The chances that a truck will be damaged is always present as long as the vehicle working as it should. Potential risks include damage due to natural disasters such as earthquakes, storms, floods. Other risks include man-made hazards such as riots, fires, or accidents. With truck insurance, you are sure that any such loss can be mitigated against. When the loss due to damage is too much, an insured truck can always be replaced.
Third Party Coverage
There is no telling who may get injured or killed when an accident occurs. At times, the cost of treatment of the injuries may rise to thousands of dollars. When insurance is absent, such risks can easily bankrupt a business. Truck insurance ensures that the owner of the motor vehicle is covered by third party claims.
Coverage of Employees
Trucking insurance can also cover the medical expenses, cremation, or burial costs that may befall a truck driver in case of an accident. Since no one can predict or prepare enough for an accident, the coverage of such costs can be very handy.
Additionally, truck insurance can also cover costs that may arise due to damage to a company’s products during accidents. This can help a business recover much quicker compared to instances where the insurance cover is absent.
It is not uncommon for transport companies, businesses, and shipping firms to ask for proof of insurance. They do this to ascertain that their goods will be protected and safely delivered. Without proper insurance documentation, it would be very hard to do business with these and most other firms.
Benefits vs. Insured Value
Most insurance companies ask for a certain percentage of the price of the motor vehicle, minus depreciation, depending on the age of the vehicle. While this cost may cause a dent to a company’s profit margin, it later becomes much lesser compared to the cost of replacement when an accident does occur.
Similarly, although one pays a certain percentage of third party coverage, payment in cases of severe injuries or death can be very high. The insurance company still covers such costs, thus protecting a company’s financial health.