Unlike most commercial vehicles, dump trucks operate off the road and in construction zones. Because of this, their unique design, and massive size – they require a specific type of commercial auto insurance known as dump truck insurance coverage.
The best dump truck insurance policy can protect your trucking business from losses when your truck is on the road and at work on various sites.
Whether you’re the owner-operator of one dump truck or a manager of several, here’s everything you need to know about dump truck insurance to secure your business and thrive.
What Is Commercial Dump Truck Insurance?
Commercial dump truck insurance is a legal agreement between a dump truck business owner and an insurance company.
The agreement covers vehicles that transport dirt, sand, asphalt, rock, gravel, and other loose materials required in road work, quarries, building construction sites, and many other locations.
Often, the vehicles covered are heavy-duty vehicles with a back part or bed that tilts sideways or backward to dump the loose material.
Some types of dump trucks include:
- Standard tandem dump trucks
- Transfer dump trucks
- Side dump trucks
- End dump trucks
- Super dump trucks
- Semi-trailer bottom dump trucks
With a dump truck insurance policy, you don’t have to worry about the risks associated with running your dump truck business. The policy eases the financial burden of dealing with accidents involving your trucks and other unforeseen events related to your business operations.
Like most commercial truck insurance, dump truck insurance coverage works on a risk-sharing principle. As the policyholder, you pay your insurance company a reasonable monthly or annual premium. In exchange, the company takes financial responsibility for various liabilities or damages, including
- Paying for the medical treatment of victims if your insured vehicle gets involved in an accident.
- Providing compensation for property damage as a result of the accident.
- Covering losses due to unexpected events like fire, theft, vandalism, and bad weather.
- Paying settlement claims and legal costs for lawsuits you may face after an accident.
Some dump truck insurance policies also offer workers compensation for dump truck operators, such as drivers and mechanics. It all depends on the dump truck insurance coverage options you go for (more about this below).
Who Needs Dump Truck Commercial Auto Insurance?
is necessary for all businesses that rely on dump trucks to operate. These include motor carriers who employ dump truck operators and owner-operators in various industries such as construction, landscaping, waste disposal, and mining.
What Does Dump Truck Insurance Cover?
Trucking insurance coverage differs from one insurance provider to another. However, most dump truck insurance policies offer standard categories of coverage:
1. Liability Coverage
Liability coverage compensates third parties for any injuries or property damage after an accident where you are the at-fault party. There are two main types of dump truck liability insurance coverage: primary and general coverage.
Primary Liability Coverage
Primary liability insurance is mandatory coverage required by state law. It offers two types of trucking insurance as a package: Bodily injury and property damage liability.
Dump truck businesses whose operations cross state lines must have their insurance provider file their liability insurance with FMCSA. In standard terms, this is known as BMC-91X filing or federal liability filing. Here’s a quick overview of insuring filing requirements to help you understand more about these compulsory state filings.
General Liability Insurance Coverage
Although optional, motor carrier general liability insurance is critical because dump truck businesses are generally high-risk. This coverage pays for bodily injuries and damages involving your business, but unrelated to your trucks. Examples of situations covered under this coverage option include slip and fall accidents on your business premises.
2. Physical Damage Coverage
Physical damage coverage protects your commercial vehicle against damages from collisions and other unpredictable circumstances like bad weather. It’s offered in two forms, collision and comprehensive insurance coverage.
3. Workers Compensation
Workers’ compensation insurance covers employees for work-related injuries. It’s essential if you use your trucks for construction purposes and employ several dump truck operators. Your employees may get cuts, burns, back pains, and other repetitive motion injuries from handling heavy machinery daily.
4. Additional Coverage
Besides liability, physical damage, and workers’ compensation coverage, some insurance companies offer specialty insurance coverage for more protection in various situations.
A few additional coverage options truckers find useful include truck rental reimbursement, downtime coverage, roadside assistance coverage, and GAP protection. Check out the add-on coverage options offered by Mission Financial Services to learn more about this.
How Much Does Dump Truck Insurance Cost?
On average, expect to pay approximately $4,000 to $14,000 per year per truck to insure your dump trucking business. This cost might be lower or higher, depending on several factors. Some of these include:
- Credit history: Trucking businesses with a good credit history qualify for affordable dump truck insurance rates.
- Driving records: Owner-operator truckers with clean driving records often pay less to insure their trucks.
- Usage: A trucking company using dump trucks for construction purposes will likely pay more than another using dump trucks for waste disposal because of the risk involved in their operations.
- Coverage options: Each type of coverage has its cost. The more coverage options added to an insurance policy, the higher the premium.
- The type and number of dump trucks insured: This affects the insurance rates offered and the premiums you’ll pay.
You may also want to check for any further discounts to reduce your dump truck insurance cost. Or, see if usage-based insurance can work for your type of business. It’s relatively more affordable than most trucking insurance packages.
Final Thoughts
Dump truck commercial auto insurance is a long-term investment. It minimizes financial losses and can help you maintain a steady cash flow so your business flourishes.
When looking for dump truck insurance, focus on finding coverage that will help you meet FMCSA’s mandatory coverage requirements. Large construction companies and quarries often require a high primary liability limit ($1M or more).
Make sure to apply for adequate coverage, especially if you’re a single dump truck owner-operator. For more information about the best coverage for truckers, check out our blog.
You can also reach out to us if you have any questions. We’re always ready to help!
