Hauling Companies Insurance

Posted on April 21, 2018

Guys who are just starting their career as an OTR truck driver, particularly as an owner/operator, are often surprised to find out that the “freedom of the open road” comes with a lot of permits, regulations, and mandatory purchases that have to be dealt with before you can load your first sack of concrete on board. It’s also the reason why a lot of otherwise qualified drivers are content to roll for the company rather than going into business for themselves. It’s simply a lot easier to let someone else handle all the paperwork, even if it means taking a much smaller piece of the per-mile pie.

Yet many drivers have discovered that the security and peace of mind they hoped to achieve by working for one of the big outfits just isn’t there anymore. Loads are harder to come by, pay less than they used to, and now frequently come with unwelcome additional strings attached that you have to swallow if you want the job. With this rising tide of aggravation engulfing the trucking companies, many operators are now taking a second look at going into business, or back into the business, for themselves.

This is particularly true as a new generation of truckers is coming online who are much more familiar and comfortable with technology in the cab. By its very nature, technology tends to cut out the middleman and connect information directly to the end user. What this means in practice is that independents can now operate just like a large outfit but at a fraction of the administrative cost.

Of course, the regulatory jungle is still out there for everyone, but there is an increasing amount of good news for those contemplating the idea of becoming an independent driver. Whereas the insurance industry used to treat truckers like a gang of red-headed step-children, certain enlightened agents have seen the light. They now offer hauling companies insurance services that will cover all of a driver’s mandatory needs as well as providing for all of the optional financial service packages he may desire on top of the requisite ones.

Also, this doesn’t eliminate all that red tape but it does enable a driver to just concentrate on what’s in front of the windshield. Having an agent who understands all of the ins and outs of the trucking business means that you can purchase a policy and not worry about any unwelcome surprises cropping up at the next weigh station. You’re not going to be under-insured and you’re sure as heck not interested in being over-insured. Just like Goldilocks, a trucker-friendly agency is going to get you the one that is just right for your needs.

Combine easier-to-obtain insurance with the plethora of new trucking management software packages, as well as coast-to-coast Internet access, and you have a recipe for being able to handle your own little trucking enterprise on-the-fly without needing to pay for a costly back office support staff in order to keep an eye on all of those necessary but distracting parts of the whole enterprise.

Hot Shot Trucking Insurance Requirements

Posted on April 11, 2018

While most people associate commercial trucking with big rigs, it’s actually the smaller segments that have contributed to most of the growth witnessed in this industry. This is particularly true when it comes to hot shot trucking, a segment that has rapidly expanded to become a world of its own. This makes it an ideal territory for entrepreneurs, but it’s important to learn what separates hot shot trucks the rest of the industry.

Hot Shot Trucking

Basically, hot shot trucking refers to freight that’s hauled using a midsize truck, specifically one that falls into Class 3, 4 or 5. What makes them unique from their larger 18-wheel counterparts is their ability to venture into certain areas, since they aren’t restricted by a weight limit. This line of trucking can prove quite profitable for you, as long as you have the connections needed to find loads and have met these insurance requirements:

• -Liability: The FMCSA requires hot shot truckers to carry $750 000 in liability at the very least. However, this won’t cut it from a practical standpoint. Brokers and shippers will require that you have $1 000 000 of the same coverage before they even consider working with you.
• -Physical damage: Although this isn’t required by the law, physical damage coverage for your equipment is strongly recommended.
• -Cargo: Under federal law, you’ll be required to have a cargo coverage of at least $5 000. Shippers will, however, demand a limit of 20 times this amount, with some loads further requiring special endorsements. When hauling multiple loads, each bill of lading will need $100 000 in coverage. It goes without saying that you’ll have to look for a policy designed with such considerations in mind.

A well-designed insurance policy should also contain:

• -Earned freight: This covers the loss of income resulting from a load that cannot be delivered due to a covered cargo loss.
• -Broadened pollution coverage: This caters for the accidental discharge of hazardous materials while in transit, or when they’re being loaded/unloaded from a covered truck.
• -Towing and storage: This caters for all costs related to towing damaged equipment as well as storage.
• -Loading and unloading: This covers shipments while they’re being loaded/unloaded.
• -Combined deductibles: With this coverage, you’ll only need to pay one deductible in the event of a mishap involving both your equipment and cargo as well.

What Else Do You Need to Know?

The annual cost of insuring a single vehicle typically ranges between $6 000 and $12 000, which is significantly less than that what you’d incur with a Class 8 truck. Other factors aside, how much you’ll have to pay for coverage will mostly depend on the agency you use, as well as the companies they’re appointed with. As a rule of thumb, you’ll want to get in touch with multiple agents when shopping for hot shot trucking insurance.

Better yet, why not use the internet and make the shopping process much easier? Here, you can compare multiple agencies to find the coverage you need at the lowest possible price. Not to mention that most companies also offer discounts for online purchases. Buying insurance online could save you up to 10 percent on your quote for the policy, but it’s important that you keep these points in mind while you’re at it:

• -Look for a policy that matches the loads you’ll be hauling, and which is also flexible enough to allow changes to be made at a moment’s notice. This will come in handy when you’re hired to transport commodities that don’t fall under your standard coverage.
• -It’s very important that you review your hot shot trucking insurance quote application before committing yourself. Not all agents will be straightforward when submitting your application — some are known to cut corners as they try to find deals. When checking the documents, pay attention to the types of loads listed and the radius of operation.
• -The best way to save on insurance is to pay in full. Yes, that’s right — it may sound counter-intuitive, but paying for your policy in one lump sum could actually slash its cost by $800. That said, seasoned operators recommend doing this after a couple of years or so of being in business.

Now that you have a glimpse of what to expect in the insurance landscape, feel free to explore and learn more. The name of the game is to buy sufficient coverage at the best possible price, but this will only happen when you have enough knowledge and experience under your belt. That aside, make sure to work with an agent who fully understands the hotshot trucking niche when shopping for an insurance policy.