Primary Liability Insurance
Owning and operating a truck or fleet of trucks is very similar to owing an automobile where insurance is concerned. The potential damage of other people’s property and even to other people themselves is why you need to carry Primary Liability Insurance. In fact, use of Federal highways in the USA requires you to have proof of financial responsibility.
Primary Liability Insurance is the core of any good commercial truck insurance policy. Since this type of insurance is the minimum amount necessary to operate a trucking and transport business, consideration should be given to other avenues of protection in regards to your vehicle and cargo. Primary Liability Insurance will not cover damage to your own vehicle or the goods being transported.
What is Primary Liability Insurance?
Remember that in any accident the damage caused by your equipment is what is covered under Primary Liability Insurance. This includes paying for damaging public property or injuries sustained by other drivers involved.
Primary Liability Insurance will not cover your loss due to fire, theft, vandalism, or other disasters. Your truck, trailer, and cargo are also at risk without complimentary policies designed to protect your other valuable assets.
What if the accident/incident is not your fault?
Again, Primary Liability Insurance covers other people—the public. If your truck is involved in an accident caused by someone else, you are at the mercy of the party at fault and their liability insurance coverage.
Keep in mind that even when two or more parties involved in an accident have Primary Liability Insurance, costs can escalate due to deductible amounts and the nature of the policies held.
How can I protect my truck and related investments?
Comprehensive Insurance will provide protection of your truck when added to truck insurance coverage. Comprehensive means “all-encompassing” so this policy will cover just about any damage that can happen to your truck while operating or not (this policy does not cover collisions, however).
Cargo and Trailer Insurance protect your additional equipment and goods being transported. In the event of loss due to accident or rollover, you will not be financially responsible if you carry the proper coverage.
What is the difference between Primary Liability Insurance and General Liability Insurance?
Although sometimes used interchangeably, Primary Liability Insurance is different. Primary Liability covers damage done by your truck or vehicle. General Liability Insurance protects your business from litigation arising from various other circumstances in the course of day-to-day operation. We at TIA can write both kinds of commercial truck insurance when helping you design the right kind of coverage your company needs.
Talk to one of our agents today for more information on Primary Liability Insurance and receive free commercial insurance for trucks quotes!
Primary Liability Insurance FAQs
Q: Do I need Primary Liability Insurance?
A: In most cases, Primary Liability Insurance is required by law. Each state sets laws regarding the minimum limit requirements of the policy.
Q: Does Primary Liability Insurance cover my losses?
A: No, this policy is for liability only. It is intended to protect other people and property. Primary Liability Insurance is the basic insurance coverage that covers injuries or damage to other people or property if you’re at fault for an accident.
Q: What is the difference between Primary Liability and General Liability Insurance?
A: General Liability Insurance covers your business in the event of damage being caused by day-day-operations and if your company is taken to court for any kind of liability. Primary Liability Insurance covers the damages to people or property caused directly by your truck/s. If you cause an accident that injures or even kills another person, the bodily injury portion of your Primary Liability Insurance will pay for the related expenses. If you cause an accident that damages another person’s property, the property damage portion of your Primary Liability Insurance will pay for those expenses.