- What is it?
Businesses and owner-operators in the trucking industry need to protect their equipment, and none is more important than trucks themselves. Purchasing physical damage insurance for trucks is one way that California truckers can protect their all-important equipment from a variety of risks.
- Who’s it for?
An insurance agent who specializes in the coverage can help businesses find a policy that’s tailored to their equipment, its use and the business’s industry.
- What is offered?
- Collision Coverage
- Comprehensive Coverage
- Fire and Theft with CAC Coverage
- Loan Gap Coverage
Physical Damage Insurance in California
What is physical damage insurance for trucks?
Businesses and owner-operators in the trucking industry need to protect their equipment, and none is more important than trucks themselves. Purchasing physical damage insurance for trucks is one way that California truckers can protect their all-important equipment from a variety of risks.
When businesses purchase physical damage insurance for trucks, they protect the equipment against many causes of damage. This often includes both accident-caused damage and damage from non-accident incidents.
What California businesses need physical damage coverage?
California businesses that have tractor-trailers generally should get physical damage coverage for their tractors. Lenders usually require coverage, and it’s important even if not financing or leasing.
This broadly applies to businesses that have large fleets of trucks, businesses that use only one or two trucks, and solo owner-operators. Any commercial entity that owns a tractor-trailer ought to consider the coverage, whether the business is in the trucking or another industry.
While almost all trucks should be protected by physical damage coverage, not all trucks require the same deductibles, limits and specific provisions. An insurance agent who specializes in the coverage can help businesses find a policy that’s tailored to their equipment, its use and the business’s industry.
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What protections does physical damage coverage come with?
Physical damage coverage is often further delineated by specific sub-coverages that are included within the broader protection. Some common sub-coverages include:
- Collision Coverage: May protect against damage that occurs during multi-vehicle accidents while driving
- Comprehensive Coverage: May protect against damage that occurs during a broad array of non-accident incidents
- Fire and Theft with CAC Coverage: May protect against damage that occurs during a more limited number of non-accident incidents
- Loan Gap Coverage: May pay the difference between a truck’s depreciated value and a loan’s balance if equipment is totaled
- Towing Coverage: May pay the cost of towing a truck to the nearest qualified repair service after a covered incident
- Extended Towing Coverage: May pay the cost of towing to a chosen repair service that’s within a maximum distance
- Downtime Coverage: May cover revenue losses while a truck is being repaired after a covered incident
- Truck Rental Reimbursement: May cover the cost of renting a replacement truck while the insured truck is being repaired
- Emergency Expense Reimbursement: May cover lodging, transportation and phone expenses after a covered incident
Does physical damage coverage extend to trailers and cargo?
Many policies that offer physical damage insurance for trucks are underwritten as stated value policies. Stated value coverage normally insures a truck for an agreed-upon amount, even if the truck’s depreciated value is below this amount.
Stated value coverage may be particularly important if a truck has extensive upgrades, which can increase the cost of replacing the truck more than its fair market value.
What is stated value coverage?
Many policies that offer physical damage insurance for trucks are underwritten as stated value policies. Stated value coverage normally insures a truck for an agreed-upon amount, even if the truck’s depreciated value is below this amount.
Stated value coverage may be particularly important if a truck has extensive upgrades, which can increase the cost of replacing the truck more than its fair market value.
How can California Businesses get physical damage coverage?
Both business owners policies and commercial package policies can be suitable for small businesses.
Business owners policies tend to provide a standard set of included coverages, and limited optional ones. These policies are most often purchased by small businesses that have basic insurance needs.
Commercial package policies come with many more coverage options. They’re most frequently purchased by larger businesses, and small businesses that have particular coverage needs. If a business owners policy isn’t suitable, a commercial package policy likely is.
Business owners can get advice as to which policy is most appropriate for their situation by speaking with an experienced insurance agent.
How can small businesses in California get a business owners policy?
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