Transportation Insurance

Sole proprietors and independent contractors face many of the same risks as bigger companies, only with fewer resources to pay for a lawsuit or other incident. Here are a few reasons you might buy insurance, even if you don't have any employees:

• You need insurance to sign a contract or lease. Clients and landlords might require you to carry insurance as part of the terms in a contract or a commercial lease. It can also give you an edge over competitors, as clients prefer bonded and insured companies that can withstand disruptions.
• Your state laws require insurance. Most states require commercial auto insurance for business-owned vehicles. You might also need insurance to get licensed in your field.
• You need coverage for a personal vehicle. Your personal auto policy won't cover work-related driving. Hired and non-owned auto insurance (HNOA) covers the cost of accidents involving personal, rented, and leased vehicles used by your business.
• Insurance protects against catastrophic losses. Commercial insurance is a crucial part of risk management, as your homeowner’s insurance won’t cover business-related losses. It helps you recover quickly from fires, burglaries, and lawsuits that could otherwise devastate your business.

Depending on the work you do, your transportation business may need additional protection. These insurance products cover other risks faced by businesses in your industry:

• Business interruption insurance: Also called business income insurance, this coverage pays for financial losses when your business halts operations due to a fire, storm, or other covered property loss. It's often included with commercial property insurance or a business owner's policy.
• Employment practices liability insurance (EPLI): When a worker accuses your business of unfair hiring practices or other violations of employee rights, this policy helps pay for your legal costs.
• Inland marine insurance: Commercial property insurance only covers property at your main location, so you may need motor truck cargo insurance for items in transit or awaiting distribution.
• Mobile equipment endorsement: This auto insurance endorsement covers specialized equipment such as forklifts, tractors, and other machinery driven on public roads.
• Bobtail insurance covers a truck driver’s liabilities if they get into an accident while driving a truck without a trailer between loads. It’s intended to cover the period between a payload drop-off and the next pick-up, when a commercial auto insurance policy wouldn't apply.
• Non-trucking liability (NTL) insurance covers accidents that occur while driving trucks for non-work activities, like running personal errands or driving a truck home after a drop-off.