Commercial trucking companies that carry dangerous materials – or even simple things – need commercial auto insurance designed for their load. If you carry dangerous materials, and a spill occurs, will your auto insurance kick in to cover the loss? Will it cover the cleanup?
You may not have any coverage for these incidents at all. It is critical to discuss this with your agent before you agree to any policy. Why should you worry?
A Basic Policy Is Not Enough
Many commercial auto insurance policies have specific exclusions written in them. An exclusion is a pre-determined risk or peril the insurer does not cover. Pollution exclusions are very common. In short, unless your policy has specific language in it about spills like this, you may not have help cleaning up the loss.
It is always important to know what coverage is available for your car, truck, or other vehicle. If you transport any type of dangerous material, your agent needs to know this is a real concern. Special coverage may be necessary to protect your business and your driver from loss.
Imagine a simple situation. Your truck is carrying boxes of material from a retailer to a customer. The product contained in the packages is some type of chemical. Many times, you have no idea what that chemical is until you ask. An accident occurs, the chemical spills on the roadway and gets into a local water source. This might prove a critical public safety threat. The cleanup can cost thousands of dollars. If you do not have a policy with designated coverage for such losses, your company may have to pay the bill.
What You Should Do to Avoid Risks
No matter what type of business you are in, work closely with your business insurance agent. Your agent needs to know:
- What type of product you transport
- How often you transport it
- If there are risks associated with a spill
The more information they have, the more protection you have on the roadway. A customized commercial auto insurance policy can meet just about any goal. This includes things like spills. However, to protect your vehicle and any liability risks, you need to have information about what you are transporting. And, your agent also needs to have this information.
Be sure to update your policy as necessary. Many drivers and truck companies should review their commercial auto insurance to ensure coverage is accurate.
Also Read: Moving Business? The Commercial Auto Insurance You Need