Should you get insurance for your hotshot trucking business?

This is a common question. Absolutely — you should insure your hotshot trucking firm.

A business auto coverage focusing on the accelerated transport of cargo with a pickup truck is known as hotshot truck insurance.

Hotshot trucking without commercial auto insurance is prohibited in all 50 states. Your hotshot trucking firm will need extremely particular limits from freight brokers and clients, which can only be secured on a commercial motor policy. That is one of the reasons to purchase insurance.

Hotshot trucking entails delivering items on short notice. Hence, things must be delivered on schedule. Most hotshot trucking enterprises are high-risk, high-reward endeavors.

Getting insurance protects your business from third-party liability claims, including bodily harm and property damage you cause and physical damage to your vehicle, and personal injury. In a nutshell, insurance is designed to protect you from any terrible events or unusual circumstances.

What should be covered in hotshot trucking insurance?

1. Physical Damage Insurance

This covers physical damages that may be incurred during road accidents while delivering goods. This includes:

  • Collision Insurance – Protects your truck from any damages from any road collision.
  • Comprehensive Insurance – Protects your truck from non-collision damages, such as fire and theft, that may happen to your truck.

2. Liability Insurance

This helps protect you or your business if someone files a lawsuit or reports a claim against your company. The FMCSA requires hotshot truckers to carry around $750,000 in liability. Most shippers and load brokers need a liability of $100,000 before cargo is released.

3. Bobtail Insurance

This insurance doesn’t cover hotshot trucking businesses that tow 1-ton loads. This insures Class 7 and 8 rigs not attached to trailers. This insurance is important for hotshot truckers who drive big rigs, as the bobtail insurance fills any gap left by the standard liability coverage.

4. Cargo Insurance

Sometimes, your hotshot trucking business will load hazardous materials or goods like oil or other chemicals. The federal statute usually requires cargo limits of up to $5,000; however, the shippers require a limit of at least $100,000. If your hotshot truck carries any hazardous material or oil, such loads will need special endorsements. And if the trailer is carrying multiple loads at a single time, then each BOL requires a $100,000 coverage.

Is hotshot trucking insurance worth the additional cost?

You may believe that purchasing insurance will add to your already high bills. Sure, it’ll be another expense to factor into your annual business budget. Consider the revenue you’ll generate if you can react quickly in a crisis. If you carry in your pickup, you’ll need hotshot insurance to protect yourself.

Many firms, from courier companies to owner-operators who use pickups regularly, can benefit from hotshot trucking insurance. You must determine whether to insure your hotshot business. However, failing to safeguard your firm against potential loss, accidents, or injury could cost you a lot more money in the long run.

How much does hotshot insurance cost?

In an estimate, all in, your hotshot trucking insurance expenses can be anywhere between the $15,000-$30,000 range, depending on your requirements. But you can always take advantage of insurance discounts by simply doing these steps:

  • If you pay your entire premium in a lump sum amount, you can get a ~15% discount.
  • If you have been in trucking for about three years, you can get a discount of around 4%.
  • Having a commercial driving license (CDL) can get you a discount of around 2%.

The Bottom Line

If you own a hotshot trucking company or are thinking about starting one, get your vehicles and your entire company insured and covered against any damage or losses that may occur.

If you’re not sure where to begin, contact an insurance agent or broker who can assist you. They have all the answers to your questions. They can teach you all you need to know about insurance, perks, and everything else you can use to benefit your company.