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Owner-operators hauling under another motor carrier’s authority do not have to worry about liability and cargo insurance. However, most carriers require owner-operators to have additional trucking insurance. The necessary policies vary on a case-by-case basis, but owner-operators may likely need to look into trailer interchange, non-trucking liability, comprehensive, and collision insurance.

Insurance Policies That Owner-operators Need To Haul Under Another Motor Carrier

Motor carriers often shoulder the FMCSA-mandated insurance requirements. However, leasing owner-operators will have to pay for the following insurance policies themselves:

Do not skimp on your insurance. Motor carriers leasing trucks hold owner-operators responsible during traffic accidents, collisions, theft, and vandalism. Get insurance claims to cover these damages. Otherwise, you might have to pay for repairs out of pocket, which could set you back by several thousands of dollars.

Are you unsure about how much money to set aside for truck insurance? Assured Standard can help! Check out our article explaining how much owner-operators typically pay for commercial trucking insurance.

Motor carriers often shoulder the cargo and liability insurance mandated by the FMCSA, but owner-operators still have to purchase additional insurance to haul loads. This is because extensive insurance goes beyond liability coverage. While motor carriers have varying insurance needs, expect most to require bobtail, trailer interchange, and comprehensive and collision coverage.

Why Motor Carriers Ask Leasing Owner-operators To Carry Insurance

Is it fair for motor carriers to require their leasing owner-operators to pay for additional insurance? The answer is yes. Mapping out a comprehensive policy protects owner-operators from several road risks that standard liability insurance does not cover. 

For instance, basic cargo insurance might not compensate for specialty freight. As such, truckers hauling hazmat goods or products that require specialized equipment might need to purchase additional coverage. Take note that motor carriers are only required to meet the minimum coverages.

Moreover, liability and cargo insurance do not cover non-owned trailers. If your leased vehicle sustains damages during a road accident, you might not be able to make a claim unless you have a non-owned trailer or trailer interchange insurance coverage.

Consult your motor carrier if you still find the different insurance policies confusing. Remember that, while you might not need to pay for owner-operator insurance, your motor carrier will likely ask you to purchase additional coverage to protect their leased vehicles. Expect the rates to go up if you’re hauling their trailer as well.

Do you find yourself lost between the types of insurance that long-haul truckers typically get? Check out Assured Standard’s article covering trucking insurance for long-haul owner-operators to learn more.

Truckers planning to enter a trailer interchange agreement cannot skimp on trailer interchange insurance. After all, cargo and primary liability coverage do not cover non-owned trucks. Therefore, not having trailer interchange insurance leaves several coverage gaps that will make you pay for repairs and damages out of pocket.

Trailer Interchange Insurance Example

Let’s say that your trucker is hauling a non-owned trailer interstate. Furthermore, a traffic accident causes a chain of collisions between cars, SUVs, and trucks. Your trucker was unfortunate enough to get involved in the accident.

Even if you have sufficient property, cargo, commercial trucking, and general liability insurance, these policies will not pay for vehicular repairs since the trucker was driving a non-owned vehicle. As a result, you’ll have to pay out of pocket.

However, let’s say you had trailer interchange insurance. If the hauled pickup or truck is under a trailer interchange agreement and has sufficient coverage limits, you are eligible for repairs.

The FMCSA does not mandate trailer interchange limits, although most policies average around $20,000 to $30,000. Of course, the actual coverage depends on your specific trucking needs. Generally, high-value non-owned pickups and tractors would need higher coverage limits.

Consider consulting your motor carrier first. Ensure that your trailer interchange policy has enough coverage to compensate for any inconsistencies in the policies they provide.  

Are you having trouble deciding how much insurance to get for your cargo transportation brand? Assured Standard can help! Check out our brief piece explaining the insurance coverage that cargo transportation service providers need.

Trailer interchange insurance covers non-owned trailers leased under trailer interchange agreements between truckers and motor carriers. Additionally, it provides standard physical damage insurance. If your non-owned trailer sustains damage from theft, collisions, vandalism, explosions, or road accidents, you can file a claim.

What Does Trailer Interchange Insurance Cover

Although trailer interchange insurance is a relatively straightforward policy, it also has its guidelines. Insurers typically enforce the following restrictions:

Trailer interchange insurance is a must before entering trailer interchange agreements. This policy protects all parties involved. In addition, sufficient insurance prevents truckers and motor carriers from paying out of pocket for damages, although the lessee typically takes care of repairs.

Consult your motor carrier before pushing through with the policy. Keep track of the cargo or general liability insurance policies they provide to avoid over-insuring your non-owned trailers. Remember that applying for more insurance than necessary only wastes money.

Can you afford marine cargo insurance on top of trailer interchange coverage? Let Assured Standard help with the computation! Check out our brief piece detailing the cost of marine cargo insurance.

When working online, any business or organization needs to protect itself from numerous cyber threats. However, despite the precautions, if your systems are hacked, you can face extensive financial and reputational damages. To protect yourself from these damages, cyber insurance is paramount. 

We talked to a panel of experts on how cyber insurance benefits you, and here is what they say;

Daniel Carter is the SEO Manager at Office Furniture Online. According to Daniel...

Cyber insurance coverage protects you against ten potential threats, namely Identity Theft, Social Media Liability, Cyber Stalking, Malware attacks, Loss of IT Theft, Phishing, Email Spoofing, Liability the media, cyber extortion. And data protection and data protection violations by third parties.

Companies can be held liable for damages caused by the theft of third-party data. Cyber insurance is important to protect companies from the risk of cyber events, including those related to terrorism, e.g., In 2011, Sony's PlayStation Network was cracked by hackers, revealing PII for 77 million users. 

Most Cyber insurance policies include primary insurance, which covers losses that directly affect a company. Third-party insurance covers losses suffered by others as a result of a cyber event or incident. Cyber risk coverage helps with costs related to remediation, including paying for legal aid and crisis communicators. Depending on the price and type of policy, clients can expect to be covered for additional expenses incurred from the physical destruction or theft of IT assets. Such expenses generally include costs related to the following: 

Will Henry is the Founder of Bike Smarts. According to Will...

The benefits of getting cyber insurance are extensive. You need to protect your business from the unforeseen and unwelcome events that can happen in your industry because these events can lead to a complete shutdown. In addition to this, cyber insurance is also helpful when you need to recover from an attack or data loss without having to worry about paying for it yourself. 

Cyber insurance provides coverage for costs like Regulatory fines or damages Regulatory defense costs Potential business interruption Loss of business data Litigation expenses Cyber extortion premiums>If you are looking to secure your business, cyber insurance is a must-have. Not only does it protect the interests of the company, but it also guarantees peace of mind for its members.  

Cyber insurance can provide coverage for large amounts of money, especially when it comes to the cost of regulatory fines or damages. You can pay these costs yourself or spend money on defense lawyers, but this is not the most efficient way to proceed. Due to this fact, cyber insurance can also help your company recover from cyberattacks without worrying about paying for all the damage that has been done. 

Hutch Ashoo is the Founder & CEO of Pillar Wealth Management, LLC. According to Hutch...

A benefit of cyber insurance is that it provides coverage in addition to that provided by a general liability policy. General liability plans do not typically cover firms for data breach-related losses. Additionally, data generally is significantly more valuable than physical assets, making it critical to have the appropriate protection in place when you need it. Supplementing your insurance with cyber coverage can give you the peace of mind that your organization's financial and reputational well-being will be safeguarded in the event of an attack.

Richard Mews is the CEO of Sell With Richard. According to Richard...

Business interruption loss compensation is one of the advantages of having cyber insurance. A cyber assault may cause an IT outage, disrupt business operations, and lose your company time and money. Your loss of revenue during these disruptions may be covered by cyber liability insurance. Additionally, additional expenses to your company operations as a result of a cyber-attack may be reimbursed.

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The point of the policy is to help lessen the financial burden of a breach. The goal here is not to prevent attacks from happening but rather to cover the costs associated with them should they occur.  Cyber policies are becoming increasingly common. In fact, according to a recent report from Deloitte, companies that are unprepared for a cyberattack are likely to face severe consequences. These consequences could include everything from higher expenses to severe reputational damage. 

Cyber insurance is important nowadays because coverage for data breaches can be expensive. A breach can cost your company millions of dollars to cover all expenses, including the time spent on the breach, lost business, and forensics costs. Without adequate cyber insurance coverage, you could end up paying for these expenses out of pocket. 

Cyber policies protect against certain liabilities faced by companies who experience data breaches. Cyber insurance policies will cover reputational damages, fines, and settlement payments your company might face as a result of a data breach.

Have you been leasing your trucks from a motor carrier all this time? If you wish to scale your business and build a brand from the ground up, consider getting your own operating authority. Stop hauling goods under another trucking company! 

To get an operating authority, register your business as a legal entity, apply for a U.S. Department of Transportation USDOT number, request a motor carrier number, designate your processing agent, sign up for the necessary insurance, then fulfill the Unified Carrier Registration (UCR). Afterward, paste your USDOT and legal name on your truck signage.

Benefits of Hauling Freight Under Your Own Authority

Do you find yourself on the fence about applying for your own authority? While driving under the authority of a third-party trucking company seems convenient, it offers minimal room for growth. On the other hand, hauling under your own authority enables you to:

Operating under your own authority gives you total control over your trucking business, but note that becoming an owner-operator comes with several responsibilities. Your daily duties no longer consist of hauling and driving. Instead, you also function as your trucking company’s CEO, maintenance manager, dispatcher, accountant, and HR director.

To ensure that you scale your business correctly, we suggest expanding your recruitment efforts and hiring more employees. Do not treat your business as a one-person team. Use your extra funds to scout talented professionals who will help your business reach new heights.

Are you having trouble mapping out an insurance policy to protect you during long-distance hauls? Assured Standard can help! Check out our in-depth piece explaining the owner-operator insurance needs of long-haul truckers.

With nearly 100,000 road accidents and over 1,000 traffic-related deaths in 2020, how can Arizonan truckers protect themselves? The answer: tow truck insurance. Carrying sufficient coverage covers third-party claims liabilities, first-party damages, and hauled cargo complications stemming from road accidents.

Tow truck insurance in Arizona is relatively inexpensive. Seasoned truckers with excellent driving histories can minimize their premiums to under $3,000 per annum. However, high-risk truckers might have to shell out over $6,000 for the same coverages.

Factors That Affect Tow Truck Insurance Premiums in Arizona

Insurance providers vary their rates based on risk. They classify Arizonian truckers as a high-risk entity if they:

Overall, the key to minimizing your insurance premiums is risk management. Build a solid, reputable company that carries minimal risks so that companies see you as an insurable institution.

To ensure that you receive fair estimates, compare the insurance rates of at least three to four providers. Avoid companies that overcharge their clients. Similarly, stay wary of providers that offer inexplicably low rates as they might have poor financial ratings or limited coverages. 

Are you having trouble deciding how much insurance is needed when hauling private vehicles? Assured Standard can help with your calculations. Read our piece explaining the coverage necessary when hauling vehicles with a pickup truck.

Tow trucks face several risks in their day-to-day operations. Commercial truckers hauling third-party vehicles typically pay over $150,000 for property damage and bodily injuries following road accidents. However, tow truck companies can combat these risks through sufficient insurance coverage.

Each tow truck should carry $300,000 worth of combined single liability insurance covering accidents that result in property loss or damage (excluding on-hook cargo), bodily injury, or death. Truckers should also consider on-hook coverage. This policy covers the damages that any on-hook vehicle sustains during the haul.

The Importance of Tow Truck Insurance Policies

Having sufficient tow-truck insurance coverage protects you from:

Do not limit yourself to state-mandated tow truck insurance requirements. Increase your coverages accordingly if your company hauls high-value private vehicles regularly. Otherwise, you might end up paying for road accident damage out of pocket.

Are you not sure whether your tow truck business can afford insurance? Assured Standard can help you do the math! Use our brief explanation of the average cost of tow truck insurance premiums as a reference.

Put simply, transportation insurance gives coverage to freight forwarders, whereas cargo insurance is designed to provide coverage to the sender of goods. Both these terms are often used interchangeably, but it’s very important to know the difference between them. 

What is Transportation Insurance?

There always remains a risk that the goods being transported can be damaged or lost. The main purpose of transportation insurance is to protect the freight carrier from any financial loss sustained by the sender due to the loss or damage of shipment. The claim will only be payable to the sender if the loss or damage of goods is proven to occur because of the freight carrier’s negligence. 

Getting transportation insurance coverage is a wise decision for freight carriers who want to play it safe. It is better to get covered from the moment you take possession of goods.

What is Cargo Insurance?

Cargo insurance helps the sender of shipment cover the full value of shipped goods in case of loss or damage. Besides freight forwarders’ negligence, cargo insurance also provides coverage in case of:

Cargo Insurance gives you peace of mind and keeps you confident about your shipping. The insurance policy also considers where the cargo comes from and where it is going, the freight forwarder’s route, and the cargo’s nature, weight, and size.

Bottom Line

It is essential for both the freight carrier and sender of goods to get insurance. Having ample protection can ensure that if things go wrong, there is no big financial repercussion. Another important thing is to make sure that the goods are packed safely to mitigate loss during their shipping process. 

To learn more about the insurance coverages you can benefit from, check out the rest of Assured Standard!

According to the NICB, cargo theft is a $15 to $35 billion industry in the United States. This makes land and marine cargo insurance a key necessity for shippers who may suffer from the loss of valuable cargo. Some carriers may not take responsibility for theft, damage, or loss to cargo, so shippers can end up paying out of pocket in a worst-case scenario.

It Can Cover The Cost Of Damage To Cargo

Cargo can get damaged during loading and unloading especially if it is improperly packaged or stored during transit. Human error can occur and road or marine accidents, lack of ventilation, and collisions can lead to damaged cargo. 

It Can Be A Requirement For Shipping Contracts 

Most shipping contracts have a minimum cargo insurance amount listed that companies need to adhere to in order to do business with buyers. Not having enough coverage can damage your professional reputation and lead to fewer repeat customers. 

It Can Cover Losses Due To Natural Disasters 

At sea or on land, there are plenty of natural disasters that can impact the condition of your cargo. Having cargo insurance for shippers can help pay for container damages and any losses that take place on your journey. 

At the end of the day, it is better to be safe than sorry especially if you’re shipping valuable or hazardous cargo. This is why having cargo insurance can help limit your liability as a shipper. 

Read on to learn more about good insurance options for transportation companies at Assured Standard! 

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Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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