Get a customized insurance quick quote for your Hotshot company.
Hotshot truck insurance is for short-haul trucking operations specializing in the expedited transport of time-sensitive cargo and is often associated with commercially driving an F-350 pulling a gooseneck or 5th wheel trailer to haul construction materials, cars, sheds, horses, etc.
If you are a short-haul trucking carrier, you mostly stay within a 150 air-mile radius and report back to the same location to end your day. These operations usually function locally, and it is an attractive way to bring in new drivers who want to be home each night.
Hotshot carriers can use many different types of trailers, including the following:
- Utility trailer
- Horse trailer
- Gooseneck or medium duty trailer
- Auto-hauling trailer
- and more
The wide variety of equipment means there is a wide range of cargo that can be hauled.
For commercial insurance, there are 5 critical hotshot insurance coverages needed to protect your business that can be customized for your specific needs.
What Hotshot Insurance Coverages do you need?
As a new venture hotshot trucker there are many start-up licensing requirements you need, including:
- USDOT Number
- MC Number
- BOC-3 Process Filing Agent
- IFTA Registration (if applicable)
- Driver Files
- Drug and Alcohol Consortium
- and more (depending on what you plan haul)
These rules require companies to meet certain insurance liability requirements. For instance, primary auto liability, also known as Bodily Injury Physical Damage (BIPD), is required by the FMCSA at a minimum coverage of $750,000 to obtain your MC authority.
The 5 critical insurance coverages needed for your hotshot company are:
- Primary auto liability – $750,000 minimum
- Non-trucking liability
- Cargo coverage – $100,000 minimum (recommended)
- Physical damage coverage
- Uninsured motorist insurance
Non-trucking Liability:All time spent in a truck isn’t billable, but it is insurable. When you use your truck for non-business purposes, you need insurance coverage. Non-Trucking Liability offers liability coverage for property damage or bodily injury to a third party when trucks are being used for non-business purposes.
Cargo coverage insures the contents of the trailer, temperature-control machinery, and other appliances or accessories that keep cargo secure. Coverage is custom and calculated based on the type of commodities hauled and the requirements of the shipper.
Physical damage coverage: Any time you drive, you are exposed to risk. Your truck could be damaged in an accident or from another disaster. It could be stolen or vandalized. Any of these issues could put your truck out of commission and compromise your business. While not required on your truck unless your vehicle is leased, it does offer 24-hour collision coverage for damages to your tractor or trailer.
Uninsured motorist coverage: If your truck/trailer is damaged or you sustain injuries in an accident that is caused by a party that does not have sufficient Auto Insurance coverage, this coverage will pay for your injuries.
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