This glossary covers many of the essential insurance terms used in the commercial trucking industry. However, insurance can be complex, and it’s crucial to consult with a qualified insurance professional to fully understand your specific coverage needs and options.

Commercial Auto Insurance: A policy that provides coverage for vehicles used for business purposes, including trucks used in the commercial trucking industry.

Motor Truck Cargo Insurance: Coverage that protects against damage to or theft of the cargo being transported by a truck.

Liability Insurance: Coverage that pays for bodily injury and property damage that the insured is legally responsible for due to an accident involving their truck.

Physical Damage Insurance: Coverage that pays for damage to the insured truck itself, including collision and comprehensive coverage.

Collision Coverage: Part of physical damage insurance that pays for damage to the insured truck caused by a collision with another vehicle or object.

Comprehensive Coverage: Part of physical damage insurance that pays for damage to the insured truck caused by non-collision events, such as theft, vandalism, fire, or natural disasters.

Bobtail Insurance: Coverage for trucks when they are not hauling a trailer, such as when returning from a delivery without cargo.

Non-Trucking Liability Insurance: Coverage for liability when a truck is being operated for personal use and not for business purposes.

Umbrella Insurance: A supplemental policy that provides additional liability coverage above and beyond the limits of the primary insurance policy.

Deductible: The amount of money the insured must pay out of pocket before the insurance policy covers the remaining expenses.

Cargo Insurance: Coverage that protects the cargo being transported against loss or damage during transit.

Trailer Interchange Insurance: Coverage for damage to trailers that are not owned by the insured but are in their possession under a trailer interchange agreement.

Primary Liability Insurance: The insurance that pays for injuries and damages caused by the insured truck in the event of an accident.

Excess Liability Insurance: Additional liability coverage that extends beyond the limits of primary liability insurance.

Underinsured Motorist Coverage: Coverage that protects the insured if they are involved in an accident with a motorist who has insufficient insurance coverage.

Uninsured Motorist Coverage: Coverage that protects the insured if they are involved in an accident with a motorist who has no insurance.

Aggregate Limit: The maximum amount an insurance policy will pay out over a specified period, often a year.

Occurrence: An event that triggers coverage under an insurance policy.

Policyholder: The person or entity that owns the insurance policy and is protected by it.

Premium: The amount of money the insured pays to the insurance company in exchange for coverage.

Endorsement: An addition to an insurance policy that modifies or expands its coverage.

Loss Control: Efforts made by the insured to prevent accidents and minimize potential claims.

Loss Ratio: The ratio of claims paid by an insurance company to the premiums received.

Indemnity: The principle that insurance is meant to return the insured to the financial position they were in before a covered loss occurred.

FMCSA (Federal Motor Carrier Safety Administration): The U.S. government agency responsible for regulating and overseeing the trucking industry, including insurance requirements.

DOT (Department of Transportation): The U.S. government agency that sets regulations and standards for the transportation industry, including commercial trucking.

Broker: A person or company that connects trucking companies with insurance providers to obtain coverage.

Certificate of Insurance: A document that provides proof of insurance coverage and outlines the details of the policy.