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.
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:
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.