Owner Operator Insurance Information for Trucking Companies

When you start up a trucking company, no matter if your service has one rig or a few hundred or thousand; you’re going to need to buy a variety of owner operator insurance packages as well as cargo liability insurance before you ever haul the first load.

If you’ve dug into the situation already, it may sound complicated, but J.D. Tanner & Associates has the expertise to guide you through the insurance process.

You’re going to need owner operator insurance in about four categories: general liability, non-trucking liability, cargo liability insurance and primary liability.

General liability insurance is something similar to an “umbrella” policy -- it covers accidents on the road and during the loading and unloading process. It also covers your trucks at rest stops. General liability also protects you in cases of theft and/or vandalism.

The minimum you must carry in general liability insurance is $750,000. The trucking industry standard, however, is $1 million.

Accidents can occur when your truck is at standstill and not running, such as when it’s on the rack at the repair shop. Bobtail insurance (also known as non-trucking liability insurance) covers your vehicles at those times.

Cargo liability insurance covers your client’s cargo while it’s in your care. Should the cargo be stolen or damaged en route, you and your client are protected. If your trucking company is like most trucking businesses, you operate as a common carrier (you contract with many different companies to haul their goods). If so, you’re required to carry cargo insurance.

The minimum cargo liability insurance you must carry is $5,000 while the industry standard recommends $100,000.

We highly recommend that you consider going for the higher amount because if the actual damage amounts to more than your insurance coverage, you are required to pay the difference between what your owner operator insurance covers and the actual damage amount.

Lastly, if your company pulls trailers that are owned by someone else, you probably should purchase trailer interchange coverage. This protects you against loss when trailers you are leasing from another company are damaged.