How transportation insurance can protect your company
If you’re a transportation company owner or decision-maker, you surely do all you can to operate your business safely. However, companies like yours face many risks over which they have no control. Bad roads, inclement weather, and the people with whom your vehicles share the road probably come immediately to mind, but that’s just the beginning. There are many types of incidents that can occur and many stakeholders depending on your company to have adequate insurance—dispatchers, drivers, warehouse staff, clients, and others. Whether you handle high-value electronics, refrigerated foods, or other goods, you need transportation insurance.
Why transportation insurance is essential
Operating without proper coverage leaves your business vulnerable to massive financial losses from accidents, cargo theft, and litigation. Transportation insurance for small businesses provides a critical safety net that ensures a single collision or cargo loss does not result in an enormous financial burden or even bankruptcy. In addition to financial protection, having the right policies in place builds trust with your clients and is often a prerequisite for securing high-value shipping contracts.
For logistics and freight company owners, transportation insurance is more than a legal checkbox. It is a vital safeguard for fleets, cargo, and drivers when transit losses or theft occur. This operational protection supports business continuity by enabling a faster recovery after an incident, which reduces costly downtime and keeps deliveries moving. Additionally, maintaining proper coverage ensures regulatory and contract readiness, allowing owners to meet shipper requirements and pass audits without friction. This transparency regarding risk and insurance responses provides owners with the visibility needed to make confident, long-term operational decisions.
Owners should keep in mind that there are many other reasons to carry transportation insurance beyond collisions. For example, imagine a driver injures their back while loading cargo. You’ll need a workers’ compensation insurance policy to help pay for their medical care and lost wages if they have to take time off to recuperate. Plus, transportation business insurance is required for nearly every company with employees.
What businesses need transportation insurance?
Any organization that uses vehicles to move goods, equipment, or people should carry specialized insurance for transportation services to protect their assets and employees. This includes long-haul trucking fleets, local delivery couriers, and other businesses. Even if you only operate a single van, standard personal auto policies generally will not cover accidents that occur during commercial use.
Business owners who rely on third-party transportation also require specific protection to safeguard their inventory once it leaves their facility and is outside their direct control. Having a dedicated policy provides much-needed liability clarity, helping to resolve disputes and address losses quickly when third-party carriers are involved. This proactive approach helps preserve customer trust by supporting reliable fulfillment even when shipping issues arise. By improving their general risk awareness, these business owners can reduce the uncertainty often associated with shipping-related responsibilities and losses.
In short, if your business involves transportation in some way, you must have transportation insurance, which includes several types of policies biBerk provides. Finding the right commercial insurance for transportation helps ensure that your unique operational risks are accounted for.
Key types of transportation insurance and what they cover
At biBerk, we offer insurance to many types of businesses, so we’re not just a “transportation insurance company.” But that doesn’t mean we don’t have deep expertise in this industry!
We’re experts at finding the right coverage to protect companies from significant financial burdens and mitigate their financial risks. That can include some or all of these five policies:
- Commercial auto insurance - Your company owns or leases vehicles, so you need this type of insurance. In fact, states typically require it and the federal government mandates it if you cross state lines and have at least nine passengers or transport goods in a vehicle over a 10K Gross Vehicle Weight rating. Commercial auto insurance—which you might call by another name like semi-truck insurance if you’re in that type of business— can cover your legal fees and the medical costs of others if you or your employee is at fault in an accident. It can also cover the cost of physical damage to your vehicles and on-hook towing. Plus, in for-hire trucking, you can purchase add-ons for your policy, like rental reimbursement with downtime, downtime coverage, cargo liability, uninsured/underinsured motorists, and trailer interchange. Notably, commercial auto insurance can protect your business even when a vehicle is used for personal activities outside of its primary business use.
- Workers' compensation insurance - Workers’ compensation insurance for transportation companies helps protect your business if an employee is injured, contracts an illness, or dies as a result of an incident on the job. When it comes to insurance for transportation companies, this is especially important. It can cover medical costs, legal fees, and lost wages due to the injury.
- General liability insurance - Also known as commercial liability insurance, a general liability policy is important insurance for transportation companies. It covers damages and legal costs associated with injury claims to customers and other people who don’t work for you, damage to other people's property your business caused, and medical costs related to these incidents. It also covers libel, slander, and copyright infringement. Plus, there are endorsements you can add to customize your policy, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
- Business owners policy - You’ll also hear this type of policy called property & liability insurance. A business owners policy or BOP combines general liability insurance with coverage for company property. It protects the building you own, the space you lease, and any property for running your business. Business owners also appreciate that it can replace lost income and pay for a temporary location if your business suffers a covered loss that temporarily puts it out of commission. Plus, you can tailor your BOP with add-ons, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
- Cyber Insurance - Hackers are out there and always looking for their next victim. You can add cyber insurance to a biBerk BOP, general liability, or professional liability policy to help cover costs related to a system hack or data breach, like losing credit card information.
How to choose the right transportation insurance for your business
Transportation business insurance for trucking and delivery companies helps prepare your organization for unforeseen disruptions, minimizing your potential financial obligations across many risk categories (damage, lawsuit, etc.). Which policies do you need? Start by evaluating your specific daily operations, the types of cargo you handle, and the distances your drivers travel.
You should look for a provider that offers an array of policies and customizable endorsements. Working with an experienced insurer helps you balance comprehensive coverage with affordable premiums, allowing you to scale the insurance for your transportation business as your company grows.
Supply chain and operations managers often view this coverage as a critical layer of supply chain resilience that helps the organization address issues from damaged or lost shipments. It establishes clear risk accountability across carriers, vendors, and partners, ensuring everyone understands their responsibilities when an incident occurs in transit. This operational confidence allows for smoother planning and fewer last-minute crises, as protections are already in place. Ultimately, insurance for transportation services provides stakeholders confidence, helping managers maintain high levels of trust with leadership, external partners, and customers alike.
Getting transportation insurance is simple!
Business insurance is essential to the success (and, in some cases, survival) of your company. But you’ve got a business to run and little time for administrative tasks like meeting with an insurance agent.
That’s why at biBerk, we make buying transportation insurance simple. You’ve got a few minutes at the end of your day? Just visit the biBerk website to get instant, self-service quotes for the policies you need. And if you have questions about what policies you should purchase or the specifics of a particular policy, we’re here to answer them.
Once you’ve decided on coverages, you can buy commercial insurance for your transportation company online, too. And if you ever need to report a claim, you can also get that process started online.
In short, protecting a business has never been easier. Or more cost-effective. Your transportation business costs will be determined by several factors, of course, including the size of your company, the type of work you do, and others. But our customers typically are surprised to learn how much financial protection they get for very affordable annual premiums.
When you consider how much a court can award someone who sues you over even a minor incident, the value you get for your transportation insurance premiums is really remarkable.
Insurance for transportation businesses: Don’t wait to obtain coverage!
As noted above, commercial auto insurance is typically required by law, so you can’t put anyone behind the wheel until you have a policy. But you shouldn’t delay in getting other necessary insurance for transportation business from a reliable business insurance provider either.
Picture yourself saying, “I’ll look into general liability insurance in a couple of weeks when things slow down.” Now, imagine one of your employees hits a delivery driver with a forklift while they wait for a signature. The driver suffers a serious leg injury, and sues you for $75,000 to cover their medical costs and other expenses, and this happens before you’ve secured coverage.
That’s a scenario that’s all too possible. And for most business owners or decision-makers, it’s all the motivation they need to take action to address their business risks with transportation insurance!
We hope you never suffer a loss. But the truth is that life can throw you a curveball at any moment. That’s why we’re ready to assist you—so that if you do experience the unexpected, you’re covered. As a company backed by Berkshire Hathaway, biBerk has the experience and resources to protect your company.