Given the nature of the trucking industry there can be an overwhelming amount of insurance options for an Owner/Operator to consider. Ensuring their truck is adequately protected is often the first priority of an Owner/Operator as it is their most important business asset. Next, Owner/Operators will often focus on insuring themselves and their families through policies such as life insurance, income replacement and travel medical emergency. Although many believe they are adequately protected once they’ve insured themselves and their truck, it is also very important for Owner/Operators to thoroughly review the options available to protect their business.
For most occupations an income replacement plan would be sufficient to assist a person and their family with living expenses in the event of an unforeseen disability. For many Owner/Operators, however, in addition to living expenses they also have substantial business expenses which could consume the majority of any income replacement they have.
Consider all of the expenses associated with an Owner/Operator’s business; vehicle lease payment, mortgage or loan interest payments, maintenance and depreciation, insurance costs, licensing fees, taxes, telephone, rent, electricity, heat and other such fixed charges which are customary with trucking operations. These expenses can total thousands of dollars a month and an Owner/Operator must ask themselves if their income replacement plan would cover these costs and also support their family’s household expenses? For many, the answer is no.
It is also important to remember that premiums for Workers’ Compensation policies are calculated based on gross income while benefits are calculated on net earnings. Therefore, Owner/Operators with high operating costs often have very low income payments through Workers’ Compensation. As income replacement is not enough to cover operational costs, this situation can be detrimental to an Owner/Operator’s financial health.
Business Expense coverage is specifically designed for Owner/Operators to protect them from being burdened by their truck expenses. Such a policy provides additional income for business expenses and does not reduce disability insurance payments as this additional protection does not replace your income.
As Owner/Operators today have more responsibilities and demands on their time, it is more important than ever to have proper, dependable insurance coverage. When purchasing any insurance it is important to work with a reputable broker. For over 25 years National Truck League has been providing industry leading coverage and peace of mind to truckers across Canada. We are always pleased to review available coverage options with our clients to help them ensure they have adequate protection for themselves, their family and their business.