Owner Operator Truck Insurance
Maintaining an insurance policy on your vehicle is a crucial part of being
a responsible driver. Because it's so important, you want to ensure that
you know what you're getting into before you choose a policy.
If you're operating a trucking business, you'll need an owner-operator
policy, but what is that and what do you need to know before you sign up?
What Is Owner-Operator Insurance?
Owner-Operator Insurance is a policy that will cover both you and your
employees in the event of an accident. Having this type of insurance is
especially important if you or your employee is found to be at fault for
the accident, as it will cover the damages caused.
It works in a similar way to the Liability Insurance you have on your
personal vehicle, only it's designed to cover employees as well as covering
Do You Need Owner-Operator Insurance?
Yes, but what type can vary depending on your business model. What type you
need will depend on whether you lease from another company, and if you do,
what their current policies cover in regards to you.
If you're not leasing, you're required to purchase at least $750,000 worth
of Owner-Operator Insurance. That regulation is enforced by the Federal
Motor Carriers Safety Administration and they can issue you a fine if
you're found to be non-compliant.
What Does Owner-Operator Insurance Cover?
What your Owner-Operator insurance will cover can vary depending on your
policy. We'll go into that in more detail in another section. For now,
let's summarize and say that the policy generally covers situations where
you or your employee is liable for an accident, and situations where the
truck, cargo, or passengers are harmed.
How Much Will Owner-Operator Insurance Cost?
The cost of Owner-Operator Insurance probably tops your list of questions.
After all, as a business owner, you need to know what expenses you're
The cost will vary depending on what company you get your insurance through
and how many trucks you need to ensure. In general, it's estimated that
ensuring one truck costs between $9,000 and $12,000 per year.
That price may seem steep, but don't forget to weigh it against what you'd
find yourself paying if you had an accident without insurance.
What's The Difference Between Operator Authority And Carrier Authority?
Oprator Authority Owner-Operator Insurance is for when you aren't leasing
from someone else. You're required to maintain this insurance, and it's
recommended that you look into what other coverages you should add to your
insurance to guarantee full protection.
Here are a few types of coverage you may want to invest in as part of your
Types Of Insurance You Should Consider As An Operator Authority
General Liability: If you're a business owner, general liability will
protect your business from non-auto liability. That includes things
like property damage, bodily injury, and injury to your business's
reputation that comes from libel or slander.
Primary Liability: Primary liability covers losses due to the damage of
another person's property or someone being injured. $750,000 of Primary
Liability Coverage is needed to operate in the U.S. due to the
regulations set down by the Federal Motor Carriers Safety
Physical Damage: If your truck is totaled or damaged in an accident,
Physical Damage Coverage can help pay for repairs or a replacement.
Passenger Injury or Death: This type of coverage helps cover costs that
may arise from the injury or death of a passenger who isn't an
Truck Cargo: As a business owner, you've likely agreed to be
responsible for your cargo arriving safely and in one piece. Truck
Cargo Coverage ensures that if you aren't able to fulfill that
agreement, you won't be left struggling to pay for the cost of the
Carrier Authority Owner-Operator Insurance is when you are leasing from
someone else. Here are the types of coverage you should consider adding to
your plan if that's your situation.
Types Of Coverage To Consider As A Carrier Authority
Unladen Liability: This covers you if you're in an accident while
you're driving without a trailer or with an empty trailer.
Bobtail Liability: This type of coverage is similar to Unladen
Liability in that it can be used when you don't have a trailer attached
to your truck. It doesn't cover an empty trailer.
Non-Trucking Liability: If you're driving the truck for non-work
related purposes where you won't be making any money, this is the best
option for you.
Passenger Injury: This coverage will pay for medical expenses if a
non-employee passenger is injured in an accident.
Physical Damage: This type of coverage will pay for damage to your
truck that results from an accident, vandalism, fires, and other such
Before purchasing insurance, take some time to conisder what plan will be
the most beneficial for you and your employees. Things like where you do
business and what you carry may effect your needs, so do your research
Do Long-Haul Truckers Need Owner-Operator Insurance?
Yes, long-haul truckers do need some form of owner-operator insurance.
You'll need to do soem research on companies to see which ones can
guarantee you the best unilimited radius coverage.
Unlimited radius coverage will ensure that you don't run into a situation
where the company refuses to pay because you're not in an area they cover.
You don't want to find yourself without coverage after an accident has
already occured, so make sure you understand exacltty what your plans
Now that you know more about what owner-operator insurance is, you
should be able to determine what type is best for your business such as if hot shot trucking insurance is the best option or not. Check
into what companies are popular in your area, especially with your
competition. The research process can take time, but it's worth it if
it keeps you from losing money, or your business, if the worst happens. Related: Warehouse Insurance