From FMCSA-required liability to cargo and physical damage — understand exactly what each coverage does and what limits your operation needs.
This is the cornerstone of any hot shot trucking insurance program. FMCSA requires a minimum of $750,000 in commercial auto liability for non-hazmat freight under 10,001 lbs. Most brokers and shippers require $1,000,000 or higher before they'll assign loads.
This coverage pays for bodily injury and property damage you cause to others in an at-fault accident. It does NOT cover your own vehicle — that's physical damage coverage.
Cargo insurance protects the freight you're hauling against loss, theft, or damage while in your possession. Almost every load board and shipper requires proof of cargo coverage, typically $50,000 minimum — but oilfield equipment, machinery, and high-value loads often require $100,000–$250,000.
Without cargo coverage, you're personally liable for any freight damage. A single dropped load or accident can cost tens of thousands before you even count legal fees.
Physical damage covers repairs or replacement of your own truck and trailer after a collision, rollover, fire, theft, vandalism, hail, or other covered loss. It combines comprehensive (non-collision) and collision coverage into one package.
If you have a loan or lease on your truck, your lender will require this coverage. Even if you own your equipment outright, replacing a 3/4-ton diesel or 1-ton dually out of pocket after an accident can be catastrophic to your business.
Non-trucking liability covers you when you're operating your truck for personal use — not under dispatch and not hauling freight. If your motor carrier's policy doesn't follow you during personal use (most don't), you're uninsured during those miles.
If you lease on with a motor carrier, their liability policy covers you while dispatched. But between loads, heading to a fuel stop, or driving home after delivery — you may be on your own. Non-trucking liability fills that gap affordably.
Trailer interchange covers physical damage to trailers you're operating under a written trailer interchange agreement — i.e., trailers you don't own but are legally responsible for under contract. Without it, damage to a borrowed trailer comes straight out of your pocket.
Hot shot operators who regularly pull trailers owned by brokers, shippers, or other carriers under agreement need this coverage. If you only pull your own trailers, physical damage handles it.
General liability covers non-auto incidents that happen in the course of your business — a customer slipping at your loading dock, property damage at a shipper's facility, or advertising injury claims. It's separate from commercial auto and covers your business operations broadly.
Many shippers, brokers, and commercial customers require proof of general liability before awarding contracts. It also protects your personal assets if your business is sued for non-auto incidents.
Owner-operators are typically classified as independent contractors and aren't covered by workers' compensation. If you're injured on the job — loading freight, in an accident, or at a job site — your health insurance may deny the claim as occupational. Occupational accident fills this gap.
It covers medical expenses, disability benefits, and death/dismemberment for injuries sustained while working. It's not workers' comp, but it provides meaningful protection at a fraction of the cost for self-employed operators.
Our licensed specialists will review your specific operation and build the right coverage package at the best available rate.
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