This is an often-overlooked coverage. Probably because it doesn’t apply to a wide range of businesses. Most businesses wouldn’t experience a loss of income if their truck was out of commission for a week or two. Most businesses could rent another truck and be back on the road servicing clients without missing a beat. If you are just using it for sales calls or haul a trailer with it, it would be easy to find a suitable replacement.
But if you are a contractor and your truck/van is your mobile warehouse. It has customized storage for your tools and inventory, it would be difficult to go to U-Haul and just rent another truck. You can’t easily move all your inventory and tools to a new truck/van and be back on the road. Or if you drive a dump truck for a living, you can’t just go out and rent another dump truck, like you can a Ford F-150. You would have no way of making money when your truck is in the shop from an accident or covered claim.
In these cases, you’d want to purchase Loss of Income Coverage on your truck. This coverage would be truck specific. If you have multiple trucks on your policy, you can select which trucks you want the coverage applied to. You purchase Loss of Income Coverage with a per day limit and then select how long you want the coverage for. Obviously, the higher the limit and longer the duration, the more expensive the coverage, but it may be worth it, if your livelihood depends on your truck.
If you found this tip helpful and would like us to review your Commercial Auto Insurance, give us a call 585-663-2004.
