It goes without saying that you need insurance if you are a part of the commercial freight industry. You hope you will not need it, but accidents can occur and lives and property might be lost. Here are the four things your hotshot insurance should cover. 

1.) Liability 

The Federal Motor Carrier Safety Administration (FMCSA) requires truckers to carry at least $750,000 in liability. This will not cut it for hotshot truckers though. The reason is that load brokers and shippers mostly require $1,000,000 of liability before they will release the load.

2.) Physical Damage Coverage 

Physical Damage Insurance is an umbrella insurance term that includes Collision and Comprehensive Insurance. This protects your truck and trailer from collisions, theft, vandalism, flooding, or any other damages. Most truckers cannot just go buy a new truck and gooseneck trailer if their’s is wrecked, so this coverage is necessary. 

3.) Cargo Coverage 

Cargo limits required by federal statute are $5,000, but most shippers want a cargo limit of $100,000. Some loads like oil or hazardous materials may require special endorsements. If you have multiple loads on your trailer at once, each bill of landing is going to require $100,000 in coverage so your policy will need to be able to handle that amount. 

4.) Bobtail Insurance

This only applies to hotshot truckers who drive large rigs. It will fill gaps in their regular liability coverage, and it ensures Class 7 and Class 8 rigs while they are not attached to a trailer, hence the term “bobtail.”

Other Insurance Coverages You Might Consider: 

Towing & Storage: provides coverage for expenses related to towing and storage of damaged equipment. 
 Loading & Unloading: provides coverage for loads while they are being loaded or unloaded. 
Debris Removal: provides coverage for reasonable and necessary cost to remove debris resulting from a covered incident. 
Earned Freight: provides coverage for lost income in the event a load cannot be delivered due to a covered cargo loss. 
Downtime: provides up to $100 a day for 30 days in the event your truck is damaged in an accident. 
Loan Gap: provides loan payments if you owe more than what the vehicle is worth. 
Medical Payments: provides pay for doctor bills if you are injured while operating your truck. 
Family Emergency Expenses: provides pay up to $2,500 for family travel expenses in the event that you are injured while away from home. 

It is important to make sure you are insured. Let us know any insurance tips of experiences in the comments below. 

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