Hot shot trucking insurance is for truckers who specialize in the transportation or expedition of…
What Is Hot Shot Trucking Insurance?
Hot shot trucking insurance policies are provided by companies that allow the use of trucks to carry loads which are needed in a short period. Usually, these loads are less than a truckload, and they need to be delivered within 24 hours. Additionally, the trucks can be used to tow and pull large trailers to haul the loads. An advantage in the hot shot trucking services is the fact that it is a freelance and you don’t have to sign some contracts for you to deliver goods to any company. Moreover, anyone can be a hot shot truck driver as long as you have a driver’s license from the Department of Motor Vehicles (DMV).
1. Hot shot trucking insurance requirements
Hotshot trucking is like any job, and it needs to be insured to give your customers comfort that you can deliver their loads on time. Additionally, it allows your clients to be satisfied with your service and have comfort in knowing that they can get a refund of their load in case of damage or loss. Here are some of the hot shot trucking insurance requirements:
• You need to have a commercial driver’s license and truck driving experience this will ensure that you get charged less for your insurance
• You are required to pay $750,000 to the (FMCSA) federal motor carrier safety administration to cover any liabilities, but most of the shippers and load brokers need you to have paid $100,000
• The minimum amount of insurance required for your truck is $5,000, but most shippers prefer you to have $100,000 cargo insurance for safety purposes
• You are needed to have physical damage coverage for your trailer and truck to ensure that all your loads are protected from any physical damage
• It would be best if you had an IRP registration cover for your truck and PTI for all your trailers
• It would help if you had DOT and MC covers for you to be allowed to cross all the state lines
2. Cargo insurance considerations
There a few things you to consider when insuring your cargo for hot shots truck services. This is because in case of any damage you need to be sure that your insurance coverage can cater for everything. Additionally, your cover should be able to be changed on short notice in case you want to transport a more significant load.
Also, you need to find an insurance cover that is flexible and covers your loads from a trip to trip. Always ensure that the insurance policy you signed covers all this and you do not miss out on jobs.
• Truck drivers are freelancers
This means that the truck drivers can work for any company they prefer without signing any contract. This allows you as a truck driver to have as many clients as you would handle with no problem. Sometimes contracts can restrict you to one place but working as a freelancer driver means that you got the freedom to choose which company you want to work with.
• You are your boss
Being your boss is a fantastic feeling that you can get especially if you are used to being employed. The idea that you are the one who comes up with all the decisions and you are the one who makes a plan and the schedule you want to follow for the day gives you so much freedom. Furthermore, being your boss gives you the freedom to choose which route you want to follow for you to deliver the load. Have you ever worked with a trucking company that needs you to follow a specific direction? That feeling can be exhausting and being able to make your own decisions allows you to do a great job.
• Freedom to choose your cargo
When you are hired by a company you don’t have the privilege to select the kind of freight you want to carry, and you are obligated to carry whatever the company loads. However, as a hot shot truck driver, you have the freedom to state what you want to be put in your track without anybody questioning you. You are your decision maker, and anything you say goes with fewer questions asked.
4. Challenges faced by the hot shot truck drivers
There isn’t any business in the world that does not have its problems. The hot shot trucking services are no, and the drivers are faced with all sorts of challenges. The challenges toughen you up and make you endure the business and celebrate when the good times hit. If you are a new driver, you are likely to face more challenges than the person who is already used to the business. Some of the challenges include:
• Buying the insurance cover to your truck and trailer, this is because the insurance cover can be expensive.
• You have no regular schedule, and this can make you slack in your business especially if you are used to having a program to follow.
• Getting a proper truck and trailer for your business can prove to be difficult since you need to have one that can be able to handle heavy loads.
• Truck maintenance can be a bit expensive not to mention take up your time. However, you need to keep your truck in shape for it to serve you for a long time.
Before getting into the business, you need to know how hot shot trucking works. Additionally, you need to be equipped on the hot shot trucking insurance requirements for you to know how you will go about the business.