Insurance is one of the largest expenses for trucking companies, but it’s also one of the most misunderstood. Many fleets renew their policies year after year without realizing they have serious coverage gaps that don’t show up until a claim is denied.
With changing freight rates, evolving cargo types, driver turnover, and new technology like ELDs, your operation can change fast, and your insurance must keep up.
Here are the five most common trucking insurance gaps CNS Insurance sees that can cost carriers thousands (or more).
1. Underinsured or Incorrect Cargo Coverage
Many carriers assume the standard $300,000 cargo limit is enough, until a claim proves otherwise.
Cargo values have increased significantly, and different commodities carry different risks. If you’ve changed what you haul, your cargo policy may no longer apply.
Common cargo coverage gaps include:
- Cargo values exceeding policy limits
- Excluded commodities
- No broad form cargo coverage
- Loss scenarios that aren’t covered
Why it matters: A single denied cargo claim can wipe out months of profit.
2. No Coverage for Downtime or Lost Revenue
After an accident, the biggest loss isn’t always the repair, it’s the truck sitting idle.
Many fleets don’t realize they have little or no coverage for:
- Downtime
- Rental reimbursement
- Business interruption
Why it matters: Missed loads, lost customers, and cash flow disruptions can quickly snowball after a claim.
Related: Why Your Truck Insurance Claim Was Denied—And How to Avoid It Next Time
3. ELD and Telematics Data Liability
ELDs improve compliance, but they also create new legal exposure.
ELD and telematics data can be subpoenaed after a crash, and many insurance policies don’t cover cyber or data-related liability tied to this technology.
Why it matters: Without proper coverage, fleets may be exposed to lawsuits or data-related claims they assumed were insured.
4. Trailer Interchange Coverage Gaps
If you haul trailers you don’t own, trailer interchange coverage is critical, and often misunderstood.
Without it, damage to a non-owned trailer may not be covered at all.
Why it matters: Repairing or replacing a trailer out of pocket can cost tens of thousands of dollars.
5. Driver Misclassification Risks
Misclassifying drivers as independent contractors instead of employees can trigger:
- Denied insurance claims
- Workers’ compensation exposure
- Legal and regulatory penalties
Insurance carriers are paying closer attention to how drivers are classified, and mismatches between your policy and your actual operation can be costly.
Why it matters: One misclassified driver can create multiple layers of financial risk.
Bonus Tip: Why Annual Insurance Reviews Matter
An annual insurance review is one of the simplest ways to uncover hidden coverage gaps, yet it’s one of the most neglected tasks in trucking.
Insurance is the fourth-largest operating cost for many carriers. According to ATRI, small fleets under 26 power units average 15.3 cents per mile in insurance costs. Skipping a review often means paying more for less protection.
A proper review should happen months before renewal and include:
- Fleet size changes
- Cargo changes
- Route consistency
- Liability limits and umbrella options
- Deductibles and payment plans
Don’t Let Insurance Gaps Put Your Fleet at Risk
Cutting corners on insurance may lower your premium today, but it can cost you everything tomorrow.
At CNS Insurance, we specialize in trucking and transportation risk. We help carriers identify coverage gaps, reduce exposure, and protect their business long-term.
Before we can get you an estimate, we are going to need some information.
Fill out a complete quote or quick quote to get started. If you have any questions or concerns, please call us at 800.724.5523 or email info@cnsinsures.com.
A quick insurance review today could save your fleet thousands, or keep your company on the road tomorrow.
