What Is Transportation Insurance?

In this article, transportation insurance refers to the coverages designed to help protect transportation industry businesses or those involved in moving goods and people. The transportation industry covers everything from trucking companies and freight brokers to shipping carriers, public transit systems, and delivery services. Because these businesses operate on the road, in the air, or at sea, they face unique risks that may require personalized insurance solutions.

Common Types of Transportation Insurance Coverages

While there is no one policy type called “transportation insurance”, there are many common insurance coverages that can be important for the transportation industry. We tell you about nine of them here.

1. Commercial Auto Insurance – Commercial auto insurance is a broad term that typically includes different auto coverages. For example, commercial auto insurance could include liability, collision, comprehensive, medical payments coverages, and more. Commercial auto insurance is essential for businesses that own and operate vehicles, and you can work with an insurance professional to help ensure you have the right coverages for your unique business vehicle needs. 

2. Motor Truck Cargo Insurance – This coverage helps protect freight carriers against losses or damages to cargo during transit due to theft, fire, or accidents.

3. Commercial General Liability Insurance (CGL) – CGL insurance covers third-party bodily injuries, property damage, and legal expenses related to non-vehicle-related incidents.

4. Workers’ Compensation Insurance – Often required for businesses with a certain number of employees, workers’ compensation covers the medical expenses and lost wages for employees injured on the job.

5. Warehouse Legal Liability Insurance – For transportation businesses that store goods, this insurance covers losses resulting from damage or theft of stored items.

6. Bobtail Insurance – This covers owner-operators who drive their trucks without a trailer, helping to protect against liability when they’re not hauling cargo.

7. Non-Trucking Liability Insurance – Provides coverage for truck drivers when they are using their trucks for personal reasons.

8. Inland Marine Insurance – Inland marine insurance helps protect goods in transit over land, whether by truck, train, or another method.

9. Commercial Property Insurance – Commercial property insurance covers damages to office buildings, garages, and equipment used in the transportation business.

There are other specialized types of insurance coverage depending on the services a transportation business provides. Be sure to discuss your transportation insurance needs with an insurance professional.

Some Types of Transportation Businesses That Should Consider Insurance

Many businesses can benefit from transportation insurance. Here are a few examples of transportation industry business types:

Trucking Companies: Whether independent owner-operators or large fleets, trucking companies should obtain coverage for vehicles, cargo, and liability risks.

Freight Brokers & Logistics Providers: Businesses that arrange shipments should obtain liability coverage for potential financial losses.

Delivery Services: Companies such as couriers, food delivery businesses, and e-commerce last-mile carriers should consider coverage for their vehicles and drivers.

Passenger Transportation Services: Bus companies, taxi services, and ambulances require liability and vehicle insurance to help protect passengers and assets.

Conclusion

Transportation insurance coverages can help provide financial protection against common risks for businesses in this industry. Whether moving goods or people, having the right coverage helps transportation companies stay compliant with regulations and safeguard their financial posture.

Acrisure has transportation industry expertise. Explore how our transportation business and insurance solutions, including proactive risk management strategies, strategic insurance carrier relationships, and specialized resources, can help your transportation company. Or learn more about our business solutions for businesses of all types and sizes now!