November 1, 2022
The transportation of hazardous materials like oil and gas requires fleet managers to be hyper-aware of the risks their vehicles and, most importantly, their drivers are faced with. One of the best ways to be prepared for these risks is to find reliable insurance coverage for your fleet. In this blog, we'll go over how to go about finding the right insurance coverage that fits your company's needs.
Commercial truck insurance includes a combination of collision, liability, and comprehensive coverage. Unlike personal car insurance, it requires higher coverage limits because trucks are heavy-duty vehicles and are expensive. Moreover, the insurance needs to account for the type of cargo the trucks haul.Due to the sensitive nature of transporting oil and gas, companies need specialized insurance coverage. Trucking insurance for oil and gas must have at least $750,000 worth of liability coverage to indemnify the company and the driver in case of property damage or injury. Additionally, the policy should include cargo insurance for replacing damaged or lost items during a collision or theft. A high-value cargo coverage increases your policy limits, allowing you to receive payments for lost or damaged items.
Fleet operational expenses are not cheap. Considering the expensive overhead, you may want to skip added costs such as insurance coverage. It's understandable: companies with large fleets will have high out-of-pocket costs. It may not seem sensible for a small company to get insured immediately while the business is still growing.However, truck insurance offers coverage against loss or damage, which may be more costly than the policy itself. Additionally, it's a legal obligation to your drivers that can help your company stay compliant. In that case, the benefits outweigh the costs.
Specialty insurance is essential for industries with special insurance needs. Below are the standard truck insurance policies for those in the oil and gas industry.
Safety managers know that operating a fleet is all about risk management. The hazards are amplified when you serve in the oil and gas industry. Since tanker trucks are heavy-duty vehicles, their challenges and risks differ from regular commercial trucks. They require different insurance to mitigate risks in transporting flammable gases, oil, chemicals, and other liquids.Finding the right insurance coverage goes beyond looking at the costs. Although many companies offer similar products, not all will be a good match for your fleet.
An insurance provider's rating reveals its financial strength and reliability. You can search the A.M. Best database for oil and gas insurance companies to find out if they can pay for your claims in case of an incident.
Ask about the policy's occurrence (the amount you need to pay to make a claim) and aggregate limits (the total amount the policy pays for annual claims). Knowing your limits will help you decide whether to file a claim for an accident or pay out-of-pocket damages.
Insurance companies have different claims processing times. Ask the company how quickly they can process claims in cases of accidents. Netradyne's fleet safety software accelerates insurance settlements so drivers can get their claims on time.
Truck insurance is not a one-size-fits-all solution. For specialized industries such as oil and gas, the insurance needs to be comprehensive to cover all bases in case of accidents. Netradyne offers connections to fleet insurance programs to help operators manage their business without worrying about liabilities and other legal complications.���