If you are in the transportation business, you need to carry several types of insurance, in Ontario. In addition, if you do not cover all your risk factors, you could find yourself out of business within a short amount of time, and it may only take one claim or lawsuit. Transportation businesses face a number of hazards that are unique to hauling companies and it is vital to have the right kind of insurance and sufficient amounts of each coverage option. Take the case of John W, for example.

John started up a small trucking company in 1995, and over the years it grew substantially. He was proud of the fact that he owned a fleet of 9 trucks with customers all over Southern Ontario. John always felt that he had sufficient trucking insurance to cover unexpected events. However, he recently decided to have an insurance review. His insurance broker told him that two million dollars of liability coverage may not be sufficient and he advised John to increase this amount to protect his growing business. John knew his broker was honest, experienced, and dependable, so he took his advice.

Eight months later, one of John’s drivers was involved in a serious traffic accident, and a car passenger received injuries that caused total and permanent disability. The passenger sued John’s company and after a lengthy court battle (with extensive legal costs), was awarded 2.6 million dollars in damages. Had John not raised his coverage, his trucking company would have been in serious trouble.

What is Trucking Coverage?

Trucking or transportation insurance is designed to protect businesses that haul goods or people. In fact, it can make the difference between staying in business and going under due to a lawsuit or legal claim.

Who Needs Transportation Coverage?

Do you haul or transport products or passengers in your line of business? If so, you are at risk for a number of things that can happen. Here are some of the businesses that need transportation coverage:

  • Professional movers
  • Long hauling companies
  • Local transport services
  • Couriers
  • Owner operators
  • Limousine services
  • Taxi companies
  • Any business that hauls things for a fee

Standard Trucking Insurance

Most transport businesses need these basic options:

  • Cargo insurance – this is designed to protect items that you haul while they are in transit.  It is very important, because auto liability coverage will not pay for cargo. Also, materials may be covered by one kind of insurance while in the warehouse, and require Cargo insurance while on the road.
  • General liability insurance – if you own commercial property like a warehouse, you need protection from legal liability issues like personal injury and property damage.
  • Commercial auto coverage – Ontario businesses must have 3rd party liability, uninsured drivers, medical payments, and DCPD (direct compensation property damage) coverage. Plus, comprehensive and collision coverage should be considered. In addition, auto liability limits should be at least two to five million dollars.

Transportation Insurance Coverage Options

When you talk to an experienced insurance person, you can discuss these options and more:

  • Income loss coverage – what if your warehouse or dock was damaged and it would take longer than a week to make repairs? You could lose a great deal of money and income replacement insurance can make up the difference.
  • Reefer unit insurance – companies that haul a great deal of refrigerated products should consider this coverage. For example, if a reefer unit quits working while hauling goods, the entire shipment could be ruined.
  • Deductible amount options – in some cases, it makes sense to raise your deductibles and it can result in lower premiums. However, when deductibles are too high, it can cause serious financial problems.
  • Deductible Buy down – a buy down is a separate policy that is designed to pay for most of your deductible when you choose higher deductible amounts. For example, you may have a $10,000 collision deductible on your truck. A buy down policy might pay $7,500 of this deductible  on insured losses.  This helps to  reduce the cost of your annual fleet insurance premiums.
  • Fleet insurance – you can often get special rates if you insure all your trucks with the same company.
  • Tow truck insurance – for towing businesses who have care and control of vehicles owned by others

Where Can I Get the Best Trucking Insurance in Ontario?

For some of the best service and prices on insurance, consider experienced insurance brokers like Bunnell Hitchon Insurance Brokers Inc.. An insurance broker is an independent representative that does not work for an insurance company. He or she works for you.

In the insurance business, experience is one of the most important qualifications, and Bunnell Hitchon Insurance Brokers Inc. has a history that dates back to 1890. You can rely on your insurance professional to take care of all your business and personal insurance needs. We have access to cross border markets and provide regular claims reviews and analysis.

Why take chances with something as important as your future, when you can have an insurance policy custom made for your business? To talk to an experienced insurance professional at Bunnell Hitchon Insurance Brokers Inc., simply call us at 519-756-2200, or in Toronto call 416-480-9888. If you are out of the area, call toll free 888-318-2424.

"Our family has insured our home, vehicles, properties and business with BHI for many years and plan to continue……. we feel protected by the best."

- A. Hill

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