What Does Commercial Truck Insurance in Alberta Actually Cover?
Commercial truck insurance in Alberta is legally required and provides a financial safety net for trucking businesses. In addition to the cargo being transported, every truck on our highways represents contracts, deadlines, income, and the business’s reputation. Therefore, one accident, breakdown, or claim should never be enough to keep a transportation company from being able to operate its business once again. Various coverages are available, which can help prevent that from happening.
Why Commercial Truck Insurance Exists?
Commercial Truck Insurance exists to protect commercial vehicles, regardless of whether the vehicle is owned and operated by one individual or multiple individuals who manage a fleet of trucks. In most cases, Commercial Truck Insurance in Alberta will provide funding to replace lost or damaged property in addition to paying for accident-related costs (i.e., an accident occurred while transporting goods) as well as providing ongoing protection for your business when you’re unable to continue operations due to the accident (i.e., your truck needs repairs).
Liability Insurance: The First Level of Protection
Liability Insurance provides coverage when the driver was found responsible for causing someone injury or property damage. Additionally, Liability Insurance pays for any legal fees incurred, medical bills, etc., and any settlement amount that is awarded as a result of the accident. A trucking company without adequate liability limits could find itself in a position to pay for its legal expenses out of pocket. Doing so exposes the company to the risk of losing its assets or hampering the company’s long-term financial viability. This is why Liability Insurance is the most basic form of protection when it comes to Commercial Truck Insurance.
Physical Damage Coverage
Physical Damage Coverage provides coverage for trucks damaged as a result of accidents or non-accidents (fire, theft, storms, vandalism) but repair/replacement does not take place until the events have occurred. Many operators depend on their truck as a means of generating revenue, so when the truck is down, revenue also ceases. This type of coverage provides the opportunity for a business to recover quickly and return to full operation with little interruption.
Cargo Coverage: Protecting the Load
Cargo Coverage protects the actual cargo that is being transported. Damage, theft, or loss of cargo leads to the need for replacement along with damages to the relationship between the trucking contractor and the cargo owner. Cargo Insurance provides ways to manage these types of losses so that the truck owner does not have to bear the entire financial loss. The types of cargo being hauled and the amount of time the load is in transit, affects the amount of insurance coverage that is needed; therefore, it is important for the trucking contractors to customize their policies based on the specifics of each load.
Downtime Coverage: Loss of Income
Downtime coverage, also known as a Loss of Use Policy, provides the ability to replace income lost as a direct result of the truck not being available for operation because of a covered claim. In trucking, every hour of downtime, directly affects the amount of revenue that the trucking contractor is making. A few days of downtime can disrupt contracts and scheduled deliveries. Loss of Income coverage fills the gap between the time the truck is damaged and the time it’s repaired.
Route-Based Coverage: Local Versus National Long-Haul Coverage
Fleets that operate across provincial lines or into the United States must have route specific insurance coverage. The insurance laws and requirements vary by province and not having the proper coverage can lead to delays, extra costs associated with fines, or being turned away at border crossings. Identifying the intended travel routes when setting up a coverage plan will help to avoid interruptions to the fleet’s operations.
Takeaway
Commercial Truck Insurance in Alberta provides more than just insurance on the equipment that is being transported; it protects the business as a whole. The correct insurance coverage provides for the truck and the cargo being transported, as well as the routes taken and the liability responsibilities associated with each trip. A-Kan Insurance will assist transporter operators with reviewing their current commercial truck insurance and identify any areas of needed protection as they operate their business, as well as recommending the appropriate insurance coverage as their operations change. By working with A-Kan Insurance now to review commercial truck insurance, transporters can avoid costly coverage gaps down the road, allowing them to operate their equipment and business with confidence.
