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A Comprehensive Guide to
Hot Shot Trucking Insurance

Truck driver fastening seat belt for safety

Hot shot trucks have become a prominent player in the logistics and transportation industry, offering a nimble and efficient solution for the delivery of smaller, urgent loads.

These are typically pick up trucks with ball on bumper or gooseneck trailers. They are able to carry less-than-truckload (LTL) shipments.

Hot shot trucking has gained popularity for its ability to meet tight deadlines and cater to clients with smaller cargo needs.

What is Hot Shot Insurance?

Operating hot shot trucks involves inherent risks, ranging from accidents on the road to potential damage or loss of cargo.

To mitigate these risks, it’s imperative for hot shot truck owners to invest in comprehensive insurance coverage.

Insurance for hotshot trucking is specifically designed to address the various challenges faced by an owner operator in this niche of the transportation sector.

Common Types of Hotshot Trucking Insurance Coverage

Hot shot trucking, as a niche within the trucking industry, involves the expedited delivery of smaller, time-sensitive loads using smaller vehicles, often pickups with trailers.

Given the unique characteristics and risks associated with hot shot trucking, specialized insurance coverage is essential to protect businesses and drivers.

Here are common types of hot shot truck insurance coverages:

General Liability

General liability insurance is a cornerstone in the world of commercial trucking. This type of coverage is crucial for protecting trucking companies and individual truckers from a variety of financial risks and liabilities that can arise from their operations. Understanding its scope and importance is essential for every professional in the trucking industry.

Primary Auto Liability

Primary Auto Liability Insurance is a foundational coverage for individuals and businesses engaged in hot shot trucking.

This type of insurance is a legal requirement for commercial trucking operations, including those involved in the expedited and specialized services of hot shot trucking.

Any pick up truck and trailer combination that per FMCSA requirements that has a gross vehicle weight rating or gross combination weight rating, or gross vehicle weight or gross combination weight, of 4,536 kg (10,001 pounds) or more, whichever is greater is required to obtain a free DOT number.

If you cross state lines or are involved in interstate commerce then you are also required to carry $750,000 in Commercial Auto Liability coverage with an MCS-90 endorsement on your policy and a BMC-91x filing (digital proof that you have the MCS-90 endorsement on your insurance policy).If you are hauling automobiles, then the federal minimum is raised to $1,000,000 in commercial auto liability because it is considered low level hazmat due to the fluids contained within a vehicle.

The company which carries your Primary Auto Liability MUST be the insurance company which provides your federal filings to activate and keep your DOT & MC number active.

Cargo Liability Insurance

Cargo insurance safeguards the value of the goods being transported by the hot shot truck. It covers damage, theft, or loss of cargo during transit.

Given that hot shot trucks often carry smaller loads with higher values, having robust cargo insurance is imperative to protect against financial losses.

Physical Damage Insurance

This commercial truck insurance covers the cost of repairs to the hot shot truck itself and the trailers attached to the truck, in the event of accidents, collisions, or damage from natural disasters.

This coverage is vital for safeguarding the owner’s investment in the truck & trailer, ensuring that repairs can be made promptly without causing financial strain.

Heavy duty pickup truck and trailer

Other types of Hot Shot Trucking Insurance

Owner-operators and hotshot trucking business owners can explore additional hotshot insurance coverage tailored to their specific needs, and find the right insurance coverage they may need.

Non-Trucking Liability Insurance

Non-trucking liability insurance provides coverage when the hot shot truck is not actively engaged in hauling a load. It covers personal use or any non-business-related activities.

This coverage is especially relevant for owner-operators who may use their trucks for personal purposes during downtime, ensuring continuous protection.

Portrait of middle aged bearded truck driver standing by his truck

Non-CDL vs CDL

When comparing the costs for Non-CDL and CDL hotshot trucking insurance, several factors come into play that differentiate the pricing structures for these two categories of drivers.

Non-CDL Hotshot Insurance Cost

Drivers operating hot shot trucks without a CDL often face slightly higher insurance premiums compared to their CDL-holding counterparts. This is primarily due to the perceived increased risk associated with non-professional hotshot truckers. It is worthwhile for all professional drivers to always get a Class A license even if it is not required, because long term it will save money on insurance. Many of the preferred insurance companies with the best prices will only insure companies with Class A licensed drivers.

Insurance providers typically consider the driver’s individual record, experience, and training. A clean driving record and comprehensive training can help mitigate some of these costs, as insurers may view such drivers as lower risks.

Non-CDL hot shot truck insurance covers the same essential aspects as CDL insurance, including liability, cargo, physical damage, non-trucking liability, and primary trucking liability.

However, due to the potential lack of extensive professional training, insurers may incorporate a risk premium into the overall cost.

Roadtrip California to Arizona

Factors Influencing the Difference between Non-CDL and CDL

Training and Professionalism

CDL holders undergo extensive training, demonstrating a higher level of professionalism and competency. Insurers often view this positively, leading to potentially lower premiums.

Driving Record

Both CDL and non-CDL drivers are evaluated based on their driving records. A clean record is advantageous for securing lower premiums in either category.

Operational Radius and Cargo Type

The distance traveled and the nature of the cargo being transported influence insurance costs for both CDL and non-CDL hotshot trucking. Higher-risk cargo or longer operational distances may result in higher premiums.

Regulatory Compliance

CDL holders are expected to adhere to strict regulatory standards, and their commitment to compliance can positively impact insurance costs.

Type of Truck

The make, model, and age of the hot shot truck can influence insurance costs for both CDL and non-CDL drivers. Trucks equipped with advanced safety features may qualify for lower premiums.

Big american pickup truck

Where to Get the Best Insurance for Hotshot Trucks

Understanding the world of hotshot trucking insurance involves acknowledging the specific risks associated with this niche and securing coverage that adequately addresses these challenges.

From liability protection to cargo insurance and beyond, a comprehensive insurance strategy is essential for the financial well-being and sustainability of hot shot trucking operations.

We specialize in a diverse range of insurance policies tailored for commercial truck drivers and their hotshot trucking businesses. Our TRS-certified truck insurance agents are dedicated to curating policies that precisely match your unique requirements while ensuring competitive rates.

Your satisfaction is our top priority, and we are devoted to providing continual support to address any concerns you may have about your policy. Whether you’re launching a new trucking venture or refining your current coverage, our goal is to offer comprehensive protection.

With the right coverage, roads aren’t just trade routes; they transform into pathways for success and growth.

If you’re seeking personalized guidance that aligns with your trucking company’s specific needs, request an instant quote or call (618) 657-7525 for further inquiries. We collaborate with over 30+ carriers to secure the best available deals for commercial trucking insurance.