How Much Insurance Is Needed For A Hotshot Trucking Business

How Much Insurance Is Needed For A Hotshot Trucking Business
by Arthur Williamson

The Federal Motor Carrier Safety Administration (FMCSA) requires hotshot truckers to carry a base liability coverage of $750,000. This amount should cover bodily injury, property damage, and physical damage. Most insurers charge around $7,000 to $10,000 for policies with a $750,000 liability coverage.

Factors to Consider for Your Hotshot Trucking Insurance Coverage

Since hotshot truckers often move time-sensitive, fragile cargo, we encourage going beyond the minimum requirements of the FMCSA. $750,000 is not enough to cover cargo and truck damages. 

First-party vehicular damages from tractor-trailer accidents alone would already set you back by over $97,000. You might have to pay for claims exceeding policy limits out of pocket.

To ensure that you have sufficient protection, consider the following factors before setting coverage limits:

  • Mode of Transportation: High-value trucks that require frequent maintenance might need higher coverage limits.
  • Cargo and Freight: Your coverage limit should cover the full amount of your freight.
  • Hauling Hours: Truckers who transport cargo at night are more likely to get into road accidents.

Do not solely focus on getting cheap premiums. Compromising your coverage limits for the sake of minimizing premiums does more harm than good. Overall, strive for an extensive, practical policy covering the risks you face as a hotshot trucker. 

Not sure if your cargo is protected when you load and unload it from the truck? Assured Standard can give you more insights into the topic! Check out our quick piece explaining trailer interchange insurance.

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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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