What Trucking Insurance Does My Company Need?

Trucking companies keep goods moving and the economy growing. Whether you operate a small fleet hauling building materials or manage local deliveries, the right trucking insurance is key to protecting your drivers, vehicles, and reputation.

In this post, Eddie Dreyer, commercial lines staff underwriter at Central Insurance, shares insights on the coverages every company should consider and how tools like telematics are reshaping risk management.

Learn how a strong trucking insurance strategy can protect your operation, improve safety, and position your fleet for long-term success.

Top Risks Faced by Trucking Companies

From collisions and cargo damage to regulatory compliance and driver behavior, trucking operations face a wide range of exposures that can disrupt business, increase claims, and drive up costs.

Central looks beyond the surface to understand the real factors behind a company’s risk profile—such as hiring and training practices, maintenance programs, route consistency, safety culture, and how seriously leadership invests in risk management. These factors paint a fuller picture of a company’s safety culture and exposures. 

Here are three key considerations we evaluate when underwriting trucking accounts: 

#1: Commercial Auto Liability

Vehicle size, route consistency, and driver experience affect a trucking company’s auto liability exposure. Larger vehicles pose a greater risk for severe accidents, especially on long or unfamiliar routes. Fleets that run local or predictable routes generally carry less exposure risk because their drivers are more familiar with road conditions and delivery patterns.

Why it matters: The bigger the truck and the farther it travels, the greater the risk. Consistent routes and experienced drivers help reduce the likelihood and severity of accidents.

#2: Driver Quality

Real-time Motor Vehicle Records (MVRs) help identify red flags such as speeding, DUIs, and accident history, allowing for a quick assessment of driver risk. 

Why it matters: Drivers are the most significant variable in trucking risk. One high-risk driver can jeopardize an otherwise safe fleet. Real-time MVRs help ensure that only qualified drivers are behind the wheel. 

#3: Safety Programs

Accounts with documented safety programs—including written policies, regular driver meetings, and post-accident response procedures—stand out. These practices show a commitment to proactive risk management. 

Why it matters: A strong safety culture is one of the best predictors of risk. When a company invests in training, tracking, and improving safety practices, it shows that it’s not just reacting to losses but working to prevent them proactively. 

What Trucking Insurance Does My Company Need?

Understanding risk is only half the equation when it comes to trucking insurance. The right coverage can protect your business when the unexpected happens. 

Below, we outline the core coverages that can help safeguard your fleet, employees, and bottom line:

Auto Liability & Physical Damage

Whether it’s a minor fender bender or a major collision, accidents on the road can lead to costly repairs and liability claims. Auto liability covers damage or injuries if your driver causes an accident. Physical damage coverage protects your trucks by paying for repairs or replacements after collisions, theft, or weather events. Central offers flexible deductible comprehensive and collision options, up to $20,000 for qualifying units. 

Example: A driver hauling drywall slides on a wet road, hitting another car and a guardrail. Auto liability pays for the other vehicle’s damage and repairs to the guardrail, while physical damage covers repairs to the truck.

Medical Payments Coverage

This coverage provides quick payment for medical treatment after an accident, regardless of fault. It’s especially helpful for minor injuries or when quick care is needed before fault is determined.

Example: A driver visits urgent care for back pain after a low-speed collision. Medical payments coverage helps cover the visit and follow-up treatment costs without waiting for a liability decision. 

Motor Truck Cargo Liability

Your drivers’ cargo is just as valuable as the truck they drive. This coverage protects the goods your trucks carry. Whether theft, a crash, or equipment failure like refrigeration loss, cargo liability helps recover costs and preserve customer trust. Central offers coverage limits up to $250,000, designed to support businesses hauling items like construction materials, industrial equipment, or palletized goods.

Example: A trucking company transporting generators for a construction site is involved in an accident, and several units are damaged. Cargo liability helps pay for the damaged goods, protecting the hauler’s reputation and the customer relationship.

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Property Coverage and Business Income

Many trucking companies operate from physical offices, dispatch centers, maintenance bays, or warehouses. Property coverage can provide financial protection at these locations from fire, theft, and severe weather damage. Business Income coverage can help cover net income lost and continuing normal operating expenses during necessary property replacement or repair time that impacts business operations. 

Example: Lightning strikes a central dispatch office, causing a fire and forcing a shutdown to make repairs. Property coverage helps pay to rebuild the structure and replace damaged equipment, while Business Income coverage helps offset net income lost and continuing normal operating expenses during the downtime.

While these core coverages can form the foundation of a strong trucking insurance program, managing risk doesn’t stop at selecting the right policy. The most successful fleets take a proactive approach by leveraging technology and telematics to prevent losses before they happen. 

How Telematics Impact Trucking Insurance

Telematics is no longer just a buzzword—it’s quickly becoming one of the most effective tools in a risk management toolkit. By monitoring vehicle and driver activity in real time, telematics helps businesses improve safety, cut costs, and respond faster to incidents.

Below, we outline some of the most effective ways these telematics can impact a trucking business:

1. Telematics systems can provide real-time insights.

 Telematics systems capture real-time data to help businesses better understand vehicle usage and driver behavior. These insights include: 

• Vehicle movement: GPS location, route history, speed
• Driver behavior: Hard braking, acceleration, sharp cornering, lane changes
• Efficiency metrics: Idle time, fuel usage, driving hours
• Incident insight: Dashcam footage (inward- and outward-facing) for added context

2. Telematics can help make business-related improvements.

Businesses can boost safety and their bottom line by turning telematics insights into action. Below are a few ways telematics can strengthen operations: 

• Reduce accidents by identifying unsafe behaviors before they lead to claims
• Coach drivers more effectively using real performance data
• Speed up the response after an incident  
• Defend against false claims with dashcam footage
• Cut operational costs through better route planning and fuel usage

He goes on to state that effectively applying telematics data is “the kind of follow-through [that] tells us so much about a company’s values,” because it demonstrates a commitment to safety, accountability, and continuous improvement—not just compliance. 

While the benefits of telematics are clear, some trucking companies are hesitant to adopt dashcams or GPS tracking due to privacy concerns or perceived driver resistance.

“If you’re getting resistance, blame your insurer,” Dreyer jokes. “The insurance industry encourages telematics use because safer driving means fewer claims. The reality is that when telematics are used constructively, they protect drivers as much as they monitor them. The metrics provide accountability, clarity, and the opportunity to improve, making them a powerful risk management tool.”

Case Study: Red Hawk Fire & Security achieved an 80% reduction in accidents in their Northeast region after implementing telematics to flag and correct risky driving behaviors. Claims and costs dropped, prompting the company to expand the program across its fleet. 

For insurance partners, telematics offers more than just data. It creates opportunities to build safer fleets, reduce losses, and uncover new ways to support clients—and that’s where Central’s expertise truly shines.

The Central Difference

At Central, we understand that every trucking operation is unique. We bring together specialized underwriting, responsive claims service, and proactive risk management support to protect your business at every mile of the journey. Our A.M. Best “A” (Excellent) rating reflects the financial strength and long-term commitment you can count on. At the same time, our experienced loss control specialists work alongside you to identify risks early, strengthen safety practices, and help reduce claims before they happen.

Whether you’re just starting with telematics or ready to fine-tune your trucking insurance, we’re proud to be a partner you can trust to help you stay ahead of risk and keep your business moving forward.

Find an agent to learn how Central can support your trucking operation.