The term hot shot trucking often refers to a situation where truck freight is hauled by a heavy-duty pickup truck or any midsize class 3, 4 or 5 truck. A typical hotshot pickup truck will usually have four axles and can haul up to 13000 lbs. of cargo. Large size trucks and trailers can have anywhere between 20 to 40 feet of usable deck space which makes them ideal for shipping large equipment, machinery as well as automobiles.
The first reported account of hot shot trucking can be traced back to Texas and Oklahoma in the early days of oil exploration. Back then, standard pickup trucks were relied on to deliver supplies and equipment to oil rigs and drilling sites. Due to the importance of having supplies delivered on time to keep operations running around the clock, hot-shot drivers were on high demand and never lurked far from drilling sites.
What sets hot shot trucking apart from other disciplines is the speed with which the cargo should be delivered to its final destination. A hotshot truck driver must deliver the goods within an hour of the call out, as a result, these trucks come in handy during emergency situations. Though pickup trucks still dominate this industry, large trucks have slowly entered the scene over the years.
Hot shot trucking has many advantages compared to traditional class 8 truck driving. For one, it’s not mandatory for a hot shot driver to possess a commercial driver’s license as long as they haul cargo that’s below 10,000lbs. This provision is especially appealing to those carriers who are just starting out in the business.
What is hot shot trucking insurance? Why is it important?
However, just like other motor vehicles, hot shot trucks and trailers are prone to many risks such as breakdown and accidents. Accident statistics released by the U.S Department of transportation in 2014 unearthed some fascinating information. Indeed, 70% of all commercial truck accidents are likely to result in property damage. Also, 22% of hot shot trucking accidents result in injuries to both the drivers and passengers in other vehicles. Every year over 120,000 people are injured in commercial truck collisions.
Furthermore, commercial truck accidents can lead to significant losses for the truck operators or owners. For one, a truck represents a significant investment on the part of the owner. The only sure-fire way of safeguarding their investment is by taking up insurance covers. The bobtail insurance cover is one of the most comprehensive insurance policies available on the market to date. Bobtail’s insurance policy is unique in that it covers the truck, the cargo on transit as well as the driver before and after delivery of the goods.
Bobtail’s hot shot trucking insurance
Bobtail’s hot shot truck insurance covers a broad range of trucking operations primarily those that specialize in the expedited transport of cargo. The bobtail cover is also useful even when trailers are not hauling any loads such as when the shipment has already been delivered and when the truck driver is en route to pick up the next haul.
Bobtail insurance is a leading hot shot truck insurance agency with thousands of clients scattered all over the country. The insurer has the expertise to tailor a comprehensive insurance policy that will meet all your trucking needs.
Factors to consider when choosing your hot shot trucking insurance cover
For truckers starting out hot shot trucking operations, shopping for the ideal hot shot truck insurance cover can be a tedious and overwhelming task. First of all, with so many companies offering truck insurance covers, singling out a suitable insurer makes the task even more daunting. Finding the right company will not only ease your worries but will also lead to thousands of dollars in savings.
A proper insurance cover not only covers you and your investment but it also goes a long way in convincing shippers that you can meet their insurance demands. Below are some the factors might ultimately determine the nature of your hot shot truck insurance. These include;
• Your choice of an insurance agent and the companies they represent
• What is your minimum coverage
• What class does your truck classify
• Whether you want any additional coverage
• The state where you reside
• Your limits as well as deductibles
• Your credit rating
• Whether you have CDL documents as well as the nature of your driving records
It’s essential that you opt for a properly-designed insurance policy to cover both the driver and your investments in almost every possible situation. Below are some of the available options we provide to truck operators.
The comprehensive package: a must-have coverage policy for all truckers; this one protects your trucks and trailers both on and off the road from the loss that may arise due to fire, vandalism, theft or any other physical threat.
The collision package: The collision package shields your investments in the event of any impact or collision with other motor vehicles, stationary objects, and even rollover events.
Towing and storage cover: This package provides cover for any expenses related to towing and storage of worn out equipment.
Binders, chains, tarps and ramp coverage: This package provides cover for all your valuables, including costly equipment in the event of a fire, vandalism, theft or other-related damages.
Combined deductibles: This package allows hot shot truckers to pay only one deductible in the event of losses occurring from a variety of cases such as trailer damage or cargo loss.
Pollution coverage (broadened): This policy provides liability coverage for your truck in the event of pollutant discharge during cargo transportation, loading, and unloading.
Downtime coverage: the downtime package guarantees that a fixed amount will be paid to you each day for a month when you out of work due to your truck being stolen, vandalized or totaled during an accident or collision. With this coverage, truckers can receive up to $100 a day for 30 days.
Loading and unloading: this policy provides cover for cargo against damage during the loading and unloading processes.
Debris removal: debris removal is a package that is designed to cover any costs associated with removal of debris in the aftermath of a collision or accident.
Family emergency expenses coverage: with this package, truckers are subject to receive up to $2500 as traveling and other expenses for a family in the unfortunate event that a trucker is injured while on duty away from home.
Other common insurance options:
Loss mitigation: This one shields you from the loss that may occur as a result of further damage to cargo after a calamity.
Medical payments: This one covers all your medical bills if you incur an injury while operating the truck.
Hotshot truck insurance requirements
Most states will require a trucker to have CDL (commercial driver’s license). A CDL coupled with some experience in hot shot truck operation will translate to less monthly premiums for your insurance coverage. Hot drivers also need to file an MC number with the FMCSA if they operate across different states. The FMCSA also requires truckers to have a minimum of $750,000 in liability coverage. However, most load brokers and shippers need $1,000,000 liability before releasing cargo. Though the federal statute sets a minimum of $5,000 in cargo limits, most shippers will want to see a cargo limit of $100,000. Physical damage coverage for your truck and trailer is also necessary. PTI registration for your trailer and IRP for your truck is also necessary.
When you drive your semi-trailer truck without your trailer or with an empty trailer, you are bobtailing or deadheading. It is important to note that, when bobtailing, your carrier company’s insurance does not cover your semi-trailer truck because you are not on dispatch. For this reason, you need bobtail liability coverage. As the name suggests, bobtailing insurance is a type of non-liability insurance product that covers your semi-trailer truck against liability when deadheading, including damage to your semi truck. As long as you are not hauling a trailer, the coverage will apply, even if you are using your semi-truck to run personal errands. In essence, you need deadhead trucking insurance if you meet or more of the following conditions:
• You drive an 18-wheeler truck under a carrier company without a trailer at any time
• You want to protect yourself from high out-of-pocket expenses or lawsuits in case you are at fault for an accident
• Your carrier company requires you to own this coverage
Scope of Deadhead Trucking Insurance
Bobtail trucking insurance applies whether you are on dispatch or not. In terms of cost, the monthly premiums range anywhere from $20 to $50 depending on factors such as your driving history. One of the main benefits of bobtail truck insurance is it provides much wider coverage than the standard liability insurance coverage. For instance, it covers uninsured or underinsured motorist liability. To put it another way, if you have bob tail trucking insurance and your semi truck was involved in an accident whilst bobtailing, your policy will cover the damages caused to the other party.
A typical lease agreement with a carrier company contains many different terms, such as deadhead, bobtail or non-trucking liability. For this reason, to avoid potential misunderstandings and save money, you should find out what type of liability insurance your carrier company requires you to have. It is worth noting that bobtail coverage primarily insurers class 7 and 8 rigs when they are not towing a trailer. In fact, insurance companies have different liability products to cater to the different niches in the trucking industry. A good example here is the hot shot truck insurance, which is specifically designed for hotshot truckers.
Policy Limit
In most cases, the coverage amount on a bobtail policy is up to $1 million. Of course, if you wish, you can purchase more liability. However, when you increase your liability, your premiums will also increase. Fortunately, if you purchase your bobtail and non-trucking liability insurance policies together from the same insurance carrier, the carrier will likely offer you a discount.
Tips for Purchasing Bobtail Coverage
The monthly premiums for bobtail insurance policies range anywhere from $20 to $50 depending on various factors including, among others, your driving history, the frequency of bobtailing, and the limits requested. For this reason, you should shop around for the best coverage at the best price. Some of the key factors to consider before buying this type of insurance policy include the total distance you normally cover deadheading. It is worth noting that most insurance carriers offer this coverage on business auto insurance policies by endorsement.
Hot Shot Trucking Insurance
In most cases, hot shot truckers use 1-ton pickup trucks to transport cargo to their clients as quickly as possible, making them the go-to truckers for emergency situations. Because of this, load brokers and shippers typically require hot shot truckers to have Hotshot truck insurance.
Hot Shot Truck Insurance Requirements
• The Federal Motor Carrier Safety Administration (FMCSA) requires $750,000 in liability coverage, while most shippers and load brokers require $1,000,000 in liability coverage.
• A minimum of $5,000 in cargo insurance, but most shippers will require you to have at least $100,000. However, this is not a legal requirement
• Most shippers and load brokers will require you to have Physical Damage coverage for your truck and trailer
• Most states require a commercial driver’s license (CDL). Remember, a CDL and experience will cut your insurance costs. In addition to a CDL, you will also need a DOT number and a Motor Carrier (MC) number if you intend to drive your truck across State lines.
• You may require IRP registration for your truck as well as PTI for your trailer.
• You will need to file forms MCS-150 and BOC-3
Cargo Insurance Considerations for Hotshot Carriers
In addition to having $100,000 in cargo insurance coverage, shippers and insurance brokers will require your coverage to match the loads you are transporting. For this reason, you should find an insurance carrier that would be willing to raise your coverage cap temporary at short notice in case you come across a lucrative job that requires you to have a higher cargo insurance coverage than you normally have.
If you are towing multiple loads on one trailer and each load has its own bill of lading, you need to insure each load separately for up to $100,000. In such a situation, you should ensure your cargo insurance policy is capable of handling this. Better yet, you should find an insurance broker that understands the demands of hot shot trucking. Such a broker would likely be able to offer you a custom cargo insurance policy to cater to your cargo insurance needs, even on a trip by trip basis.
At a minimum, your hot shot insurance policy should offer property damage and bodily injury insurance. However, a good hot shot insurance policy should offer a variety of key insurance products including, among others, self-employment, business liability, and medical insurance.
Tips for Finding the Right Hot Shot Insurance
When shopping for the best hot shot insurance coverage, ensure you review your application. This is because, to find you the best deal, some insurance agents may try to cut corners on your application. At the same time, ensure you are honest with your insurance agent. More specifically, ensure you disclose the types of loads you will be transporting, as well as your area of operation. By doing this, you will be able to get the right coverage for your needs. If you pay for your hotshot policy in full, you can save about $800 per year. However, if you are a new hot shot trucker, you may want to pay monthly until your business stabilizes.
Non-trucking Liability (NTL)
As mentioned above, bobtail truck insurance is only useful when your rig is not hauling freight. For this reason, you need other types of liability insurance to cover your 18-wheeler when it is has a load attached to it. For instance, if you regularly use your truck for non-businesses purposes you need non-trucking liability. Provided you are using your rig for non-business purposes, non-trucking liability insurance will protect your rig against liability in case it is involved in an accident, irrespective of whether you are an empty trailer or not.
Exceptions and Restrictions
Some of the activities that may be considered as business activities and therefore not covered under non-trucking liability include fueling up, washing your truck, deadheading, driving during layovers, and driving to the terminal. In essence, any activity that would be covered the motor carrier’s primary liability insurance would not be covered under the non-trucking liability policy.
It is worth noting that motor carriers may or may not provide their truckers with this type of coverage. For this reason, you should read your lease agreement carefully to find out whether your carrier company offers NTL or not. This will not only help you avoid double coverage but also help you address any gaps in your coverage.
Non-trucking Liability Policy Limits
A typical non-trucking insurance policy will have the following coverage limits:
• Bodily injury and property damage — up to $1,000,000 combined single limit
• Uninsured/underinsured motorist- up to $50,000 per person
• Uninsured/underinsured motorist- up to $100,000 per accident
Scope of NTL Policy
Non-trucking liability insurance covers liability associated with injury or damage to a third-party business or individual. The scope of coverage includes the cost to replace or repair the damage, as well as medical expenses. Remember, you will only benefit from NTL policy coverage if you are involved in a road accident while driving your truck for non-business purposes. Although some insurance carriers also offer coverage for trips home after leaving a motor carrier or a drop-off, some states consider such trips to be under the carrier’s liability insurance policy.
The Cost of Non-trucking Liability Insurance
Compared to other trucking insurance policies, non-trucking liability coverage tends to be generally less expensive largely because it is as broad as other policies. To calculate your monthly premiums, insurance carriers will consider various factors including, among others, your lease agreement, the frequency of personal driving, limit request and driving history.
Now, the main difference between bobtail insurance and non-trucking insurance is that the former covers your semi truck when you are bobtailing irrespective of whether you are on dispatch or not, whereas the latter only covers your semi truck when you are driving it for non-business purposes.
Conclusion
The most important trucking insurance policies for an independent trucker leased to a motor carrier include bobtail insurance and non-trucking liability insurance. In essence, you need these policies because your motor carrier’s insurance will not cover your semi truck in certain situations. For instance, it will not cover your truck when you are bobtailing or when you are driving your semi truck for non-business reasons.
If you’re a hot shot trucker, ensure you have hot shot truck insurance policies, which is generally more expensive than other types of trucking insurance policies. When purchasing trucking insurance policies, ensure you shop around because the prices tend to vary from one insurance carrier to another. To calculate your monthly premiums, insurance companies consider various factors, including your driving history and lease agreement.
Before deciding on changing your current coverage or insuring your business, we strongly advise that you discuss it with your insurance agent, attorney, or accountant. Having said that, below are some do’s and don’ts that apply to the major products in freight broker insurance:
Do’s
When it comes to freight broker insurance, do consider these coverage options:
– Property and general liability
Consider buying property insurance if you own or lease property. It is advisable that you package it with general or freight broker liability insurance for your operations and premises. Your agent should advise you on recommendations for coverage and quotes.
– Vicarious auto liability
As a freight broker, you also need this type of insurance. Your insurer will be in a better position to defend you in case you are sued. The vicarious auto liability will cover you if you are found liable. But before you sign a contract with the insurer, make sure that you carefully review the terms and condition. This is because the policies offered for freight broker liability and vicarious auto liability vary widely. Also, consider buying an umbrella policy. This policy will allow you to increase your liability limits. This is very important for a freight broker.
Workers’ compensation
Another product you should consider getting for freight broker insurance is workers’ compensation. Every state requires that if you have two or more employees, you should cover them with this product. Also, ensure that the carrier you are doing business with has this insurance cover. This type of freight broker liability insurance will cover you in case you are sued for injury to your employees as he or she was on duty.
– Contingent cargo
This is another type of freight broker insurance that you should consider getting. This product is important because you do not know what your carrier’s policy covers and does not cover. Do remember that contingent cargo insurance is not all the same. Make sure you read and understand the terms and conditions of the cover before signing a contract with the insurer.
– Errors and omissions
Be advised that some claims are not covered under other policy. For instance, if your carrier gives you wrong information by mistake, the misinformation could be considered as negligence. In this case, you can file a claim and it will be covered by errors and omissions (E&O) insurance. Remember that E&O will not pay for property damage or bodily injury. However, in some circumstances, such as if error and omissions insurance is part of your contingent cargo policy, damage to cargo may be covered. Therefore, consider getting this product for your freight broker insurance.
Don’ts
Below are some products that you should not waste your time and money on:
– Excess auto liability
To bridge the gap between the shipper’s requirement and the carrier’s limits, freight brokers buy auto liability coverage. We advise against doing this. Do not buy insurance for the benefit of another party. You should only insure your liability exposure. Therefore, do not waste your time and money on this type of freight broker liability insurance.
Named as additional insured
Your carrier can name you as an additional insured. In this case, out of four carrier policies, you can be named as an additional insured in one policy. Here they are:
– Auto liability
You do not have to be an additional insured in this policy. This is because the omnibus insuring agreement and MCS-90 endorsement automatically include the shipper and the broker as insured. Therefore, no need for this type of freight broker liability insurance.
– General liability
You can bename as an additional insured in this type of carrier policy.
– Cargo insurance
This is a policy that you should not waste time and money on. You cargo is obviously covered by the shipper’s policy when in transit, so no need for you taking this policy.
– Workers’ compensation
It is not legal in most states for a company to be an additional insured in another company’s policy.
Insurance. Just the word itself is enough to raise blood pressures and set teeth on edge. Regardless, insurance is a way of life and without it the wheels simply can’t – and shouldn’t – turn. The importance of educating yourself regarding the different types of non trucking liability insurance coverage and policies that exist is great, and when a loss event occurs having the right coverage can mean the difference between handling some paperwork and complete bankruptcy.
Certificate of Insurance
After determining the appropriate types and levels of coverage, and after all premiums have been paid in full, a Certificate of Insurance (COI) will be generated. The COI is the document that summarizes your insurance coverages and amounts, and is also your proof that your insurance is valid and current. Keep it nearby, as your customers will definitely want to see a copy. A sample COI, with explanations pertaining to each section, can be found here: http://www.boma.org/appendix/Documents/SampleCOIwithInstructions.pdf
General Liability
This coverage type provides coverage against claims for bodily injury and property damage “arising out of premises, operations, products and completed operations” and may also include other aspects such as misleading advertising or personal injury liability.1 Each item covered by general liability will have its own dollar amount of coverage level, so be sure to select and adjust the levels however necessary for your particular needs.
Auto Liability
Automobile (auto) liability insurance would apply in any loss event that directly involves the carrier. Whether a carrier’s truck crashes through a fence or a civilian’s vehicle collides with a truck parked on the side of the road, auto liability is the insurance that would cover related damages. In the case of a third party logistics company (3PL) that brokers its freight to a carrier, the 3PL’s coverage amount may be contingent on that carrier’s auto coverage. In other words, the 3PL’s contingent auto coverage could provide the necessary coverage in the event of a claim where the carrier’s insurance turns out to be invalid or fails to provide the appropriate level of coverage necessary for the situation at hand.
Excess/Umbrella Liability
This type of coverage offers protection when the limits of the general and automobile policies are exhausted as a result of a claim event. In addition, the umbrella policy can provide coverage for situations not specifically covered by the general liability policy.2 Umbrella liability coverage does have exclusions, however, and certain events exist that would not be covered. For those situations, look to errors and omissions coverage to provide protection when such conditions happen.
Errors and Omissions
Occasionally claims arise that are not covered by any of the above policy types. For example, if a broker inadvertently gives the wrong information to a carrier, that broker could be considered negligent. Should that occur, errors and omissions (E&O) insurance would be the type of insurance to cover such a situation. While E&O would help – and would likely pay – in situations such as this, please note that E&O will not come into play for any other types of situations such as property damage or bodily injury.3
Other Insurance
While countless kinds of additional insurance riders are available for both companies and customers, be sure that the specific type needed to insure your particular freight is available, and that the coverage amounts are sufficient for the value of your shipment(s). Be it an incredibly expensive transformer or temperature-critical insulin, other insurance options such as high-value coverage and reefer breakdown protection exist that can be added to protect your commodity.
With the myriad of insurance coverage types available and the countless number of trucking companies in existence today, it is imperative that the transportation provider you select understands and possesses appropriate levels of insurance. ReliancePartners is well versed in the needs of our customers, and has valid insurance in place in each of the categories detailed above, with more available depending on the commodity you need to transport. For information about our coverage levels, or for an updated copy of our Certificate of Insurance, contact one of ReliancePartners’s experienced freight consultants today at 877.668.1704.
Although one may not realize it, the trucking and health care industries have a couple of things in common. Both health care and over-the-road transportation are team-based processes, and for each to function smoothly one crucial aspect must be handled seriously: documentation. From the first phone call about a load to the final invoice submission, accurate and thorough documentation is absolutely imperative, because in trucking for bobtail insurance – as with the health care industry – if its not written down, it didn’t happen.
Inform
Most in the industry are used to gathering the usual information to help determine what transportation will cost, such as the usual data points of commodity details, dimensions, weight and value. However, many other pieces of information can prove beneficial, especially when it comes to overdimensional loads, such as whether the commodity is new or used, whether it needs weather protection and the desired speed of delivery. If it’s a vehicle, is it operational? If it’s an oddly-shaped item, are there photos available?
Are ramps necessary or will the origin/destination have loading docks? Speaking of loading/unloading, will any assistance be needed or expected? Are loading/unloading times dependent on crane appointments? Obtaining as much information as possible in the beginning is the number one way to work towards a successful cargo move, as it will be this very information that shapes the project.
Recap
A common error that can occur early in the transportation process is not making all the information gathered above available to everyone: fellow dispatchers, the driver, and the customer themself. Other dispatchers may wind up becoming involved with the project down the road due to absence/sickness of the original dispatcher, so sharing the project should help prevent confusion later. The driver is the one who will actually be hauling the load, so he/she will definitely need every bit of information possible. And don’t forget the customer: a quick email or fax summarizing the load info and other information is the perfect way to ensure everyone is on the same page, and also provides the customer with the opportunity to review their own data and ensure they haven’t made a mistake.
Confirm
Most carriers utilize some type of faxed or email load confirmation sheets, which provides details about the job (origin, destination, contact info, etc.) and is where the carrier and/or customer is able to sign to make the job official. This is the final chance to provide specific, written details that pertain to the move, as this is the page that receives the signatures that seal the deal. Although important information may have been gathered in the initial steps (crane appointment times, required types of chains, whether tarping is needed), unless it is detailed on the load confirmation sheet it may be overlooked. While specific details on the confirmation sheet may make it lengthy or otherwise appeared cluttered, it will be the last opportunity to have the required information appear in writing on the form that is actually signed by the carrier and/or customer.
Most loads are transported without problems, and such thorough documentation may only prove beneficial for audits or other historical reviews. However, if the commodity suffers any damage during transit, or if the shipper or customer feel that something was performed inaccurately, such attention to detail will most certainly come in handy. Copies of email strings, signed load confirmation sheets and any other documentation will aid in any steps related to cargo damage or insurance-related claims, both of which are topics recently discussed in their respective blog entries.
Accurate, detail-oriented and professional are three words that can describe both the successful health care and transportation provider. As a result of its years of experience, Reliance Partners is well-versed in the necessary steps required to ensure safe and successful transport of your bobtail cargo, and definitely knows the importance of proper documentation. Let the freight consultants at Reliance Partners provide you with a rate quote today by calling 1- 877.668.1704 or providing the relevant info about your project in the blue “Free Freight Quote” box.
BobtailInsurance.com’s trucking and transportation insurance is the best in the industry. Regardless of the type of trucking insurance required, BobtailInsurance.com offers the best rates and incomparable service for all of your insurance needs.
BobtailInsurance.com caters to all types of trucking and transportation companies, even those that are considered risky by other insurance providers. Tickets and accidents are no problem, we’ve seen it all; and we look forward to providing your company with the best quality and most affordable insurance your money can buy.
Whether you live or work in our local service area, or if you wish to become a part of our national insurance network; we look forward to doing business with you!
Imagine for a moment that you are driving your truck during hours that you are off the clock from your dispatch position. During your drive, you happen to get into an accident. Obviously this accident will not be covered by your insurance provided by the trucking company, or that covers you when you are driving to and from one of your various jobs. Bobtail insurance can protect you in scenarios such as this. If other drivers and passengers are injured, or a vehicle involved in the accident is damaged, Bobtail insurance will pay for repairs of other involved vehicles and medical bills of the other parties involved.
Having bobtail insurance is a smart move for any trucker. Though these insurance policies do not cover you when you are hauling a loaded trailer, they will cover when you are driving your truck off the clock.
Competitive Rates
Bobtail insurance policies from BobtailInsurance.com medical bills of the other parties involved are priced with competitive rates that can’t be compared by other area insurance companies. These limited liability insurance policies are an asset to owner-operators, as they protect the driver in the case of an accident when they are not on dispatch, and not pulling a loaded trailer.
Just as many truckers are concerned about their liability and their insurance coverage when they are on the job, many carry the concerns over to when they are driving their truck back home after completing a job. If you need Bobtail coverage or non-trucking liability insurance, we at BobtailInsurance.com can help you get the coverage you need.
The Best In The Industry
At BobtailInsurance.com, you are more than just another policy number; you are a valued customer. Whether you specialize in local or long distance trucking, we have policies that will work for you. No matter what your company specializes in, we can ship it. Fill out our easy to complete Free Quote form today to see how we can provide you and your company with affordable bobtail insurance or other trucking policies for cargo, physical damage; even workers compensation. We look forward to the opportunity to work with you and make your time on the road even safer than before.
If you’re an independent contractor and own a semi-trailer truck, you probably are already required to carry non-trucking liability insurance by the trucking industry or the company you contract with. This protects you, should you have an accident while using your truck for personal reasons or when not involved in driving for for the carrier. Larger trucking companies may reimburse or cover drivers for this insurance while smaller companies may not.
Bobtail insurance is a completely different policy than the non-trucking liability, and it’s necessary if you tend to drop a trailer and head to another stop without a trailer. Most know this as deadheading from one stop to another without a trailer. It also covers you when you drop a trailer and then drive your semi home. Some companies that hire independent contractors also require drivers to have bobtail insurance. Depending on the trucking company, most require independent drivers to carry the insurance at their own expense.
Coverage
So what does bobtail insurance cover? The policy is specifically for truck owner/operators that drop a load or trailer at one location and drive to another location to pick up a trailer. During the trip when the trailer was dropped off to the new destination, the driver and semi without a trailer are covered in the event of an accident.
Why have bobtail insurance?
It’s often confusing for owners of semi’s working as independent contractors to have two separate insurance policies. However, if you are actually working and on your way to pick up a load and do not have a load and involved in an accident, your non-trucking liability insurance would not cover damages since you didn’t have a trailer at the time of the accident.
If you engage in a lot of deadheading, the bobtail insurance policy is must-have to protect your semi when you do not have a trailer.
How much is a bobtail policy?
Policies for bobtail insurance will vary depending on the amount of liability you want. Commonly, the policy is written for $1 million, but you can purchase more if you wish. The amount of the liability you choose will impact your premiums. Many companies will write both your non-trucking liability insurance and bobtail policies together and may offer a discount for having more than one policy with the agency.
Saving money on insurance coverage
As with any insurance coverage, shopping around and getting quotes will ultimately save you a great deal of money. First, consider the amount of time and distance you typically are deadheading, if you do this often and for long hauls, the bobtail policy with a higher liability is definitely something you will want to consider.
If you only contract with one trucking company, you may ask them for advice on purchasing a policy cheaply. Since the company probably has other independent contractor drivers, you may find out some insight to obtain a good price on a policy. Lastly, make sure you find out if the company you contract with reimburses you a portion of your bobtail insurance policy.
Shipping container dimensions have been standardized, so they do not vary from one market to another, or from country to country. This is because they are made to international standards, making cross-border trade much easier. Containers can also be interchanged by shipping, rail and truck companies easily without having to make any adjustments whatsoever. The following are standard shipping container dimensions.
External Container Dimensions
The standard lengths of shipping containers are 10 feet, 20 feet, 30 feet and 40 feet. These containers have a standard external width of 8 feet. The height for standard containers is 8’6″ while High Cube containers have a height of 9’6″.
Internal Container Dimensions
Since containers are made from thick metal, the internal measurements are normally a little bit smaller than external measurements. The internal dimensions for the 10, 20, 30 and 40 feet containers are reduced to 9’2″, 19’3″, 29’4″ and 39’4″ respectively. The internal widths are also reduced to 7’7″. The internal height for standard containers is also reduced to 7’9″, while that of High Cube containers is reduced to 8’9″.
Carrying Capacity
Standard containers can carry 560, 1160,1760 and 2360 cubic feet of goods respectively in the 10, 20, 30 and 40 foot containers.
Companies that manufacture shipping containers have to adhere to these standards regardless of the type of materials they are using. Containers are designed to offer maximum carrying capacity while ensuring maximum stability of the road, bearing in mind the fact that traffic and trucking rules differ from country to another. Standard dimensions also make it easier for shipping companies to stack up the containers in their ships and shipping yards. After making a container, manufacturers are required to give each container a unique identification number.
It is important to note that refrigerated and insulated shipping containers have smaller internal measurements. They are also much heavier.
Types of Shipping Containers
The following is a list of standard shipping containers commonly used in the trucking industry.
– Flat rack
– Half height
– Open side
– Open end
– Standard
– Modular
– Liquid build (tank), and
– Refrigerated containers
Container shipping services are very important in the global trade. They must be used whenever individuals or corporations need to import items into the country. Using standardized containers makes loading, transportation, unloading and storage very easy. When you want to transport something, it is important that you consult a shipping company to come up with the best shipping solution.
Trucking is a multibillion dollar industry that drives the economy. There are thousands of motor carriers operating across the country, and they employ hundreds of thousands of people. While some of these trucks are owned by the motor carrier, most are owned and operated by private individuals. Motor carriers normally prefer to lease trucks from private firms or individuals and use them to haul goods for clients, either within the state or across state lines. While the trucks are on the road, the motor carrier is normally exposed to a wide range of liabilities. For one, the truck might be involved in an accident which may lead to physical injury of the driver and other road users, damage of client’s goods and damage of the truck as well as other vehicles on the road. That is why motor carriers normally have insurance policies that provide extensive coverage for all the liabilities they may be exposed to. When an owner operator is involved, the motor carrier does not need to cover some of the liabilities since the owner may be partly liable for the incident. Due to the complex nature of the trucking business, a number of insurance products have been developed by insurers.
Owner Operator Insurance Policies
An owner operator is an individual or company with trucks that have been leased by a motor carrier. The owner operator provides both the trucks and the driver. They are responsible for maintaining the truck. Owner operators are also under contractual duty to avail their trucks on time and haul goods according to the instructions provided by the motor carrier, or as described in the lease agreement. At the end of the work day, the owner operator can go home with their truck or use it as they wish. Owner operator insurance policies provide coverage for liabilities the owner operator faces when:
– Off-duty
– Using the truck for personal errands
– When not under dispatch
– When bobtailing
– When driving to or from the terminal
There are basically two types of owner operator insurance policies; non-trucking insurance and bobtail insurance. The latter offers the widest liability coverage and costs more than non-trucking insurance, which only covers liabilities incurred while using a truck for personal non-business use.
What you Need to Know About Bobtail Insurance
To understand what bobtail insurance is, you first need to know what bobtail means. After hauling goods to a given destination, there is no need of waiting for the trailer to be unloaded and take back an empty trailer. Most carriers normally require truckers to leave the trailer and drive the truck back, or to the next haul. Driving a truck without the trailer is what is known as bobtailing. Bobtail insurance, therefore, is a type of owner operator insurance policy covering all liabilities incurred while driving a truck without the trailer. This type of insurance covers any type of damage to the truck when it’s being driven to or from a terminal, or in-between hauls. The coverage is valid whether or not the owner is under dispatch.
Difference Between Non-Trucking Liability Insurance and Bobtail Insurance
There is a common misconception in the trucking industry that bobtail insurance is the same as non-trucking liability insurance. The truth is that the two are not the same. While they may both be owner operator insurance policies, they have different liability coverage. For instance, non-trucking liability insurance only covers liabilities incurred when the truck owner is not under dispatch, or when using the truck for personal non-business errands. This means that if a truck gets damaged, or you hit a pedestrian while driving to or from the terminal, non-trucking liability insurance will not cover these liabilities as they are considered business uses of a truck. Other exemptions include; driving the truck for refueling or servicing. Your motor carrier will also not shoulder the burden, which will leave you in a limbo, so you will have to cover the costs. Bobtail insurance, on the other hand, would cover these liabilities provided you are operating the truck without the trailer.
What Motor Carriers Demand
The vast majority of motor carriers require their contractors to have non-trucking liability coverage of at least $1 million but owner operators can pay higher premiums to get higher liability coverage limits. Some motor carriers normally specify in their lease agreements that the contractor must have bobtail insurance, so it is important to read the lease agreement before purchasing any policy. It is important to note that bobtail insurance offers a wider liability coverage than non-trucking insurance, so it is more expensive than the latter.
Buying Owner Operator Insurance
The first thing you need to do, as an owner operator, before you start looking for a suitable insurer is read the lease agreement to learn about the motor carrier’s insurance requirements. Check the type of liability coverage required, whether non-trucking or bobtail, as well as the coverage limits required. The next step is to find a reputable insurance company or insurance brokerage firm with a lot of experience in the trucking industry. Next, get quotes from the top truck insurance providers and choose one that suits your needs.
Deadheading and bobtail trucking basically refers to non trucking liability. There are varying types of liability coverage and each offers different levels of coverage. If you are the operator or owner of a commercial truck it is imperative that you refer to your lease agreement with the carrier to determine what kind of coverage you are required to have. Many contracts use the terms non trucking liability and bobtail trucking liability, implying it has the same meaning however, there is a slight difference between the meaning of these two terms, You should know exactly what bobtail trucking liability is and what it covers. Failure to get the right coverage may cost you an enormous amount of money, in the unfortunate event of an accident.
When you use any truck without the attached trailer, it is known as bobtailing or dead heading. If your carrier requires that you have insurance for when you operate your truck without the trailer, you need to go for bobtail liability coverage. Basically this type of insurance will cover your truck when it is used without the trailer, whether you are on dispatch or not. It also covers any damage to your truck.
When and Why is Bobtail Liability Coverage Needed?
It is necessary to have this coverage in the event that you drive your tractor to and from the terminal, but without the trailer. It is also applicable when you are traveling between your loads, without the trailer attached. Once again, it is important to remember that Bobtail Liability Coverage applies whether or not you were dispatched for these loads. This type of insurance is usually more costly than other types of liability insurance. However, it does offer much wider coverage than your standard liability coverage. In most cases, your lease agreement with your carrier will contain many different terms, such as bobtail, dead-head, or non trucking liability. However, as the operator or owner of the truck, the onus is on your to ask them exactly what type if liability coverage the need the truck to have. By asking these key questions and doing your research to find out exactly what liability coverage you need, you will save yourself or a lot of money in times to come.
Non trucking liability basically refers to using your truck on your days off. It is not uncommon for truck owners to use their vehicles for personal reasons such as going to the movies, buying groceries or visiting family and friends. Non trucking liability will offer you coverage in the event that you meet with an accident. It can pay for your injuries and medical expenses associated with others. It can also be used to pay for damages to other people’s property that may occur if you have an accident, while not on dispatch.
What Does Dead Head or Deadhead Mean?
You have heard the term dead-heading being used, however, since you are new to this, you don’t fully understand what it means. To put it simply, anytime that you travel with an empty trailer, it is called deadheading. So if you travel from point A to Point B with a trailer full of groceries to be dropped off at Point B, but return to point A with nothing inside your trailer, it is referred to as deadheading.
Non trucking liability basically does not cover any business related activity while you truck as this should be covered by your carrier. So for example, if you are hauling any type of cargo, fueling up, or doing any type of maintenance on your truck , it is regarded as business activities and you will not be covered by non trucking liability protection. Non trucking liability will also not cover you in the event that you are pulling a loaded trailer.
Physical Damage Coverage
In most cases, your carrier company will only cover your truck for liability damage and any actual damage to your truck itself will not be covered. This is why you need Physical damage coverage. This type of coverage is absolutely necessary and will cover your insure your truck against theft, natural disaster, collision or overturn. This coverage is not bound by any restrictions. Physical damage rates vary, but you will usually be able to get deals as good as 2.5% of the value of your truck. Accidents can occur with no prior warning and cause major damage to your truck and in some cases, a serious accident can cause you to write off your truck. Other unfortunate events could lead to the theft of your truck or it may be the victim of a natural disaster. You never know what could happen every time your use your truck on the road. However, you can take the necessary steps to make sure that in the event of any type of disastrous event, your truck is insured.
Rate My Truck Insurance Reliance Partners