The trucking industry is the core of the supply chain worldwide. It wouldn’t be wrong to say it connects businesses and businesses with customers. However, the recent turn of events has changed the dynamics of how companies used to operate earlier. Physical damage insurance has emerged as a necessity to run a trucking business safely.
With the rising petrol prices, stringent regulations, and unique demands of businesses, it has become a tough sector to operate in. If there’s any disruption, it means a complete halt. In other words, you can’t afford downtime as it may risk losing your loads.
Taking effective measures like physical damage insurance helps avoid dramatic financial consequences in case your unit is a victim of an accident such as collisions (crashes), vandalism, fire, or theft.
What is Physical Damage Insurance?
As a truck owner-operator, accidents, liabilities, and damages, are not anything you’re unfamiliar with. These are common challenges that your job or business must keep dealing with until you look for preventive alternatives.
Physical damage insurance covers vehicles or trailers against a variety of damages, such as collisions (crashes), vandalism, fire, and theft. Lenders generally require this type of coverage for leases and loans.
Physical damage insurance is also known by the abbreviated names PD and APD (Auto Physical Damage). A Physical damage policy covers the events contemplated in the following components:
Collision
This type of insurance coverage protects against vehicle damage from physical contact with another vehicle or object, including animals, fences, rocks, trees, buildings, and other structures.
Integral
This coverage insures your truck or trailer against damage caused by something other than a collision. That includes fire, theft, vandalism, falling objects (such as tree branches), and weather events. It does not cover mechanical problems or maintenance and repairs.
5 Reasons Why it’s Important for Commercial Trucks
Having insurance relieves you from the burden of unnecessary financial costs and mental stress. So, consider buying insurance like Physical Damage as it benefits you in the following ways.
Avoids High Repair Costs
Are you experiencing too many downtimes recently? The repair expenses from unexpected accidents must have skyrocketed. If you want to avoid those, start scheduling regular maintenance of your trucks. Delaying these benefits you in no way, but if scheduled, it can help minimize the chances of the breakdown.
Covers Accidental Damages
While on the road, accidents can happen anytime. They’ll not knock at your door. That’s why you need to be prepared in advance.
You may not be able to reduce the vulnerability factor to zero; however, reducing the costs associated with repairs is possible. Physical Damage insurance will ensure your truck or trailer gets operational again without adding anything to your monthly bills.
Once you have appropriate coverage, you can get back on the road and resume your tasks without any financial strain.
Protects Your Investment in Case of Theft/Vandalism
Though not uncommon, waking up to see your vehicle missing or vandalized is a rare and sad occurrence. The fact is, the trucking industry is not untouched by these unfortunate realities. The loss of property and livelihood is unimaginable. And so is seeing your source of income, i.e., the truck smashed or broken.
Depending on the Insurance company carrying your physical damage insurance, your company will get optimal coverage to help you with repair expenses or recover the value of a stolen truck.
Adds Liability Coverage
While physical damage insurance protects your truck, it is recommendable and also adds an additional layer of security with liability insurance.
When your commercial truck is involved in an accident, all the legal and financial liabilities related to a third party will be covered under this. If your vehicle has caused any harm to another person, even their medical expenses will all be easily managed by your insurance company.
In short, all the repercussions arising due to a collision with a third-party vehicle will be handled by your agent. You only need to invest in suitable insurance.
Gives You Peace of Mind
Worrying every time about financial losses disrupts your peace of mind and health. The happening of unforeseen events will keep worrying you.
On the other hand, physical damage insurance will safeguard your investment, relieving all unnecessary stress. So, you focus on expanding your trucking business.
Believe it or not, fear of potential risks only keeps you from realizing your dreams. Give these worries a rest to focus on what’s most important.
Final Thoughts
In the highly dynamic world of commercial trucking, physical damage insurance will act as a reliable shield against all the uncertainties that come with the job. So, whether you’re a trucking owner-operator or someone starting a trucking business, consider researching this insurance type.
It’ll prove to be a smart investment choice, securing your truck and giving you peace of mind. For more information or to get trucking insurance quotes, you should consult a professional to know all the details about this coverage.
Read more: Construction Injuries and Traumatic Brain Injuries: Legal Considerations