Safeguarding Your Transportation Company: Common Claims and Essential Coverage

The last thing any business owner in the transportation industry wants to receive is a claim from an unsatisfied customer over a negative experience. Not only can this financially impact your company, but it can also hurt your overall reputation and decrease customer retention. Running a transportation company comes with numerous challenges, including mitigating risks associated with potential claims. In this blog, we will shed light on common claims faced in the transportation industry and discuss specific types of insurance coverages that can safeguard against them. 

Six Common Claims for Transportation Companies and the Insurance Needed


No matter how skilled your drivers are, collisions are an unfortunate reality in the industry and can have severe consequences. Whether it’s a minor fender bender or a major accident involving multiple vehicles, collisions can result in property damage, injuries, and even fatalities. 

To adequately protect your business against collision-related claims, you should consider purchasing comprehensive commercial vehicle insurance. This coverage typically includes property damage liability, bodily injury liability, and collision coverage, providing financial security for repairs, medical expenses, and legal costs. 

Driver Injuries

At the heart of every transportation company is the driver. They must be skilled in their work as they face unique occupational hazards. If a driver sustains an injury while on the job, your business may be held liable for medical expenses, lost wages, and potential legal claims. 

It’s of the utmost importance for transportation companies to adequately protect their drivers and their business, making workers’ compensation insurance essential. This coverage ensures that drivers receive the necessary medical care and wage replacement if they can’t work due to a work-related injury or illness. 

Passenger Injuries

If you operate a transportation company that offers passenger services, the safety and well-being of your passengers are paramount. In the unfortunate event that a passenger sustains an injury during transit, your business could face liability claims. Protect your business from passenger injury claims with passenger liability insurance. This coverage provides financial protection for medical expenses, legal costs, and potential settlements resulting from passenger injuries. 

Cargo Damage

Transporting goods exposes your business to the risk of cargo damage. Many factors such as improper loading, road conditions, and unforeseen accidents can lead to goods being damaged or destroyed. To safeguard against the risk of cargo damage claims, it’s vital to obtain cargo insurance. This coverage helps provide compensation for losses or damages to the cargo you transport, ensuring that you aren’t held liable for the cost of replacement or repair. 

Theft of Cargo

Cargo theft is a legitimate, significant concern for transportation companies, and it can occur in various forms, including hijackings, pilferages, and even internal theft. Although cargo insurance can help protect against financial loss from damaged cargo, it usually doesn’t cover incidents such as theft. Therefore, it’s advisable to obtain cargo theft insurance. Not only does this coverage compensate you for the stolen cargo, but it can also cover associated expenses, such as investigation costs and recovery efforts. 

Liability Claims

Liability claims encompass a broad range of incidents from property damage to personal injury. These claims can arise from accidents involving your vehicles, slips and falls on your premises, or allegations of negligence. Shield your transportation company from the financial burden of liability claims by investing in general liability insurance. 

Stay Protected on the Road With Forerunner Insurance

Operating a transportation company comes with a level of risk. Although there are ways to lower the costs of claims with safety features or reduce the chances of an accident with safe practices, accidents are sometimes out of our control. That’s when having the proper insurance coverage in place can save your business from catastrophic loss.

At Forerunner Insurance, we understand the complex intricacies of the transportation industry and can help you safeguard your business, fleet of vehicles, and employees. Please contact us today for more information on the array of insurance coverages we offer to protect your business adequately.

More Forerunner Blogs & Industry Updates