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 you.

Owner Operator Truck Insurance

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.

Owner Operator Truck Insurance

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 facing.

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 owner-operator package.

Types Of Insurance You Should Consider As An Operator Authority

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

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 carefully.

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 limitations are.

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