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    Independent Owner Operator Insurance 2020

    Just recently purchased your own truck and decided to go independent? Good for you! Now you have the freedom to haul your preferred goods and drive where you wish to!

    But slow down -  first, you need to make sure your investment stays safe. 

    Independent Owner Operator Insurance

    Being an owner-operator of a commercial truck comes with plenty of advantages, but with an equal amount of responsibilities. Indeed, you DO have control over your truck operation, but you will need owner-operator insurance to protect your investment. 

    Don’t wait for an accident to happen. Feel the maximum potential of your truck business with peace of mind that you and your vehicle obtain with proper insurance.  

    Read through to learn more about recommended insurance coverages as well as the insurance applicable to interstate drivers.

    What is Owner Operator Insurance?

    Independent Owner Operator Insurance

    Owner Operator Insurance is a liability insurance for all independent truck operators. Due to the massive size of a commercial truck, it can potentially cause larger damage and more severe injuries on the road. With that, as a truck operator, you are expected to obtain this insurance to cover the damages you might cause in case of a road accident. 

    Without liability insurance, an owner-operator may encounter financial difficulties if a major collision or road accident occurs. Many independent contractors face liability charges due to accidents and are forced to shut down their hauling business because of the lack of proper insurance to cover them.

    Typically, truck owners are offered $750,000 to $5 million in insurance to maintain their hauling operations steady in case of an unforeseen accident. 

    What Other Additional Owner Operator Truck Insurance Coverages Are There?

    To assist you in deciding on the best insurance policy to obtain, take note of the following insurance coverage: 

    Bodily Injury Liability

    This insurance is frequently combined with Property Damage Liability Insurance. If in case you get into an accident that places other people in danger, this insurance should pay the amount you are obliged to pay. Aside from that, you can obtain legitimate defense through this insurance in case you get sued by the involved parties.

    Other related costs that you could be legally obligated to pay due to the accident include:

    • Hospital and medical bills
    • Rehabilitation and aftercare recovery
    • Funeral expenses
    • Lost wages claim

    Property Damage 

    As mentioned beforehand, Property Damage Liability is obtained together with Bodily Injury Liability Insurance. This insurance should prevent you from shelling out money out of your pocket to pay for any damage you may have caused on anyone else’s property. 

    When it comes to property, anything tangible that you cause damage upon is included in the coverage. For instance, if you swerved to avoid an animal on the road and accidentally collided with another car; you can pay for the damages using this insurance. 

    Similar to previous insurance coverage, Property Damage Liability can cover legal defense expenses in case you are sued as a result of the damages. 

    Physical Damage

    Any insurance coverage that secures your vehicle belongs under Physical Damage coverage. The liability insurance could include Collision and Comprehensive Insurance, depending on your preference. 

    Here we will further discuss the differences and benefits of each. 

    Collision Insurance

    truck collision

    Depending on the extent of damage to your vehicle and the amount of insurance you purchase, your Collision Insurance can cover the repairs or replacements your truck needs. 

    Comprehensive Insurance

    If the damage to your vehicle is not caused by a collision or accident, Comprehensive Insurance coverage can pay for the repair of replacement of the vehicle or its parts. 

    Damages other than collisions covered under this insurance include:

    • Fire accident
    • Theft of parts including wheels, bumpers, side mirrors, or the entire vehicle
    • Vandalism on the surface of the vehicle
    • Glass-breaking to enter the vehicle

    Motor Truck Cargo

    One of the most critical insurances for independent contractors is Motor Truck Cargo Insurance. This provides coverage for freight, commodity, goods, or items that you are hauling and transporting. 

    In case of lost or damaged cargo due to fire, collision, or theft, this liability insurance should pay for the amount required from you. 

    Motor Truck General Liability

    Frequently confused with previous coverage, Motor Truck General Liability covers any damage or injury you may have caused while performing business activities. Take note that these damages or injuries are directly unrelated to ones caused by your truck; it focuses more on your trucking business operations. 

    How Much Do Owner-operators Pay for Insurance?

    The amount varies widely across insurance companies. Some pay as low as 4 figures yearly or as much as 8 figures yearly. Factors that affect owner-operator truck insurance costs include: 

    truck insurance
    • Number of trucks
    • Truck’s specifications including size, age, model, and condition
    • Owner operator’s driving record or experience
    • Preferred annual coverage
    • Route distance 
    • Commodities 
    • Coverage options 
    • Preferred deductible

    Owner Operator Truck Insurance for long-haul truckers

    If you are an interstate driver, often covering distances of thousands of miles, there is special insurance coverage for you. Typically, owner-operators that exceed a radius of 300 miles on a regular basis are eligible to purchase securities tailored for interstate business. 

    Once more, coverage varies widely across insurance companies. Some of the common coverage and limits for insurers that cover the business of long-haul truckers include the following:

    • Motor Truck Cargo General Liability
    • Physical Damage
    • Motor Truck Cargo
    • Property Damage
    • Bodily Injury Damage

    Ensure Your Business by Insuring It!

    Carefully examining the coverage presented to you is vital to obtaining the most comprehensive protection you can get for your trucking business. While affordable insurance may seem reasonable, it does not offer you the most extensive coverage. 

    Basic liability coverage like Motor Truck Cargo General Liability is similar across almost all insurance companies, so pay close attention to the limits and deductibles. You don’t want to get owner-operator insurance that costs $50,000 when you have to shell out almost half the amount as deductible. 

    Keep your trucking business and your revenue safe with reliable Owner Operator Truck Liability Insurance. You will never know when an accident on the road happens. It’s more beneficial to invest in insurance now than pay for damages out of your own pocket later!

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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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