Posted on November 21, 2018
What is hot shot trucking?
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.
Posted on October 31, 2018
The Ultimate Guide To Bobtail Insurance
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.
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