Streetsmart insurance Blog
Like other business owners, the owner-operator of a trucking business relies on complex equipment to earn a living. If your truck is damaged in an accident, your truck insurance policy will only pay for the physical repairs to your vehicle. Any additional expenses, like commercial auto loan payments, rental vehicles, and living expenses, would not be covered.
Downtime insurance can protect you from unexpected financial losses if your vehicle is damaged or destroyed. If your tractor or trailer is damaged in an accident, downtime insurance will replace your income until you can return to work. This form of business interruption insurance is designed for truck drivers who depend on their vehicle to complete assignments. In addition to compensating for lost income, downtime insurance can also cover commercial auto loan payments, legal fees, and emergency expenses.
For example, imagine that Ron Baker owned his own trucking business and completed all of his contracts with his personal semi-trailer. During the winter, Ron got into an accident as he was driving his truck down an icy road. He failed to complete his contracted run and was forced to cancel all of his other assignments over the next few weeks so that he could repair the damage.
Ron’s truck insurance policy paid for the physical damage to his vehicle and reimbursed him for all of his medical payments. Unfortunately, Ron did not have downtime insurance and was forced to pay for all of his additional expenses out of pocket.
If Ron has purchased downtime insurance, his policy would have covered most of his additional expenses. Ron would have been able to use the money to cover his commercial auto loan payments, rental truck, and living expenses.
Although downtime insurance is an extra expense for qualified truck drivers, the cost of losing your income is far more costly than an additional insurance policy. Talk with your insurance agent to find out what options are right for you.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first truck insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!