Hotshot Insurance Requirements: A Guide for Non-CDL and CDL Drivers

hotshot insurance requirements

Hot shot trucking is a growing industry that offers many opportunities for entrepreneurs. However, it is important to have the right insurance in place to protect your business from potential liabilities.

This page will provide an overview of the requirements for hotshot trucking insurance for shot truckers, including both non-CDL and CDL drivers.

cdl non cdl hotshot driver

Non-CDL Hot Shot Trucking Insurance Requirements

If you operate a hot shot truck with a gross vehicle weight rating (GVWR) of 26,001 pounds or less, you are not required to have a commercial driver’s license (CDL). However, you will still need to have the following types of insurance:

General liability insurance

This insurance covers bodily injury and property damage caused by your truck. Most freight brokers and managers require a minimum of $1,000,000 per occurrence for liability coverage. This type of insurance may also cover legal fees.

Cargo insurance

This insurance covers damage to the cargo you are hauling. Most freight brokers and managers require a minimum of $5,000 in cargo insurance per truck and $10,000 per occurrence.

Physical Damage Insurance

This commercial trucking insurance covers the cost of repairing or replacing a dump truck if it is damaged in an accident, regardless of fault. This includes both collision and comprehensive coverage.

Commercial Driver's License (CDL) Hotshot Insurance Requirements

If you operate a hot shot truck with a GVWR of more than 26,001 pounds, you will need to have a CDL. In addition to the requirements listed above, you will also need to have the following CDL hotshot insurance:

Commercial vehicle liability insurance

This insurance covers bodily injury and property damage caused by your truck in a commercial trucking accident. Most freight brokers and managers require a minimum of $750,000 to $5 million in commercial vehicle liability insurance coverage.

MCS-90 endorsement

This endorsement is required for all interstate motor carriers. It provides financial responsibility coverage for bodily injury and property damage caused by your truck.

Additional Insurance Coverage to Consider

In addition to the requirements listed above, you may also want to consider the following types of insurance:

Primary Liability Coverage

This coverage includes bodily injury and property damage liabilities resulting from accidents for which the tow truck operator is at fault. Primary liability coverage is often required by law.

Non-trucking liability insurance

This insurance covers injury and property damage caused by your truck while it is not being used for business purposes.

 

Cargo Liability Insurance

This hotshot insurance is a vital component of commercial hot shot trucking operations, offering financial protection against losses due to cargo damage or loss. It fulfills contractual requirements, safeguards cargo value, provides peace of mind, and bolsters business reputation.

Umbrella/Excess Coverage

This particular commercial trucking insurance provides additional liability protection beyond the limits of primary liability insurance, acting as a supplementary layer of coverage with higher limits to protect against catastrophic losses.

hotshot insurance cargo

Hotshot Trucking Insurance: What is Covered?

Hot shot insurance covers the following parts of the truck:

  • The truck: This includes the cab, chassis, engine, transmission, axles, wheels, tires, and all other components that make up the truck.

  • The trailer: This includes the bed, frame, wheels, tires, and all other components that make up the trailer.

  • Any equipment or tools that are used to transport cargo: This may include loading ramps, straps, chains, and other equipment.

In addition to covering the physical damage to the truck and trailer, hot shot truck insurance also covers the cargo that is being transported. This means that if the cargo is damaged or lost, the hot shot trucker will be compensated for the value of the cargo.

Do note that the specific coverage limits will vary depending on the insurance company and the individual needs of the hot shot trucker.

Hot shot truckers should carefully review their insurance policies to ensure that they have the coverage they need to protect themselves and their hot shot trucking business.

How to Get Hot Shot Trucking Insurance

There are a number of commercial hot truck insurance companies that offer hot shot trucking insurance. You can get quotes from several companies to compare rates and coverage options.

You can also work with an insurance agent who specializes in trucking insurance. An agent can help you find the right insurance coverage for your needs and can also help you get the best possible rates.

Hot shot trucking can be a rewarding career, but it is important to have the right insurance in place to protect your hot shot business. By understanding the insurance requirements for hot shot truckers, you can make sure that you have the coverage you need to operate your business safely and successfully.

If you’re seeking personalized guidance that aligns with your trucking company’s specific needs, request an instant quote. We collaborate with over 30 carriers to secure the best hotshot insurance policy for commercial truck insurance.