Hotshot trucking is a special kind of delivery service where trucks quickly and efficiently transport small loads, like construction materials or heavy machinery, to meet specific customer needs. It’s a fast-paced job with tight deadlines, but it comes with risks like accidents, injuries, lawsuits, and damage to the cargo. To protect their business, hotshot truckers get hotshot insurance, which is a crucial part of commercial trucking insurance that covers various potential risks.
The cost of hotshot insurance can vary based on different factors, such as the type and value of the truck and cargo, the driver’s history and experience, and how far and how much the truck travels. From what we’ve learned, hotshot insurance usually costs between $6,000 and $18,000 per year. In this article, we’ll explore the important things that affect the cost of hotshot insurance and what hotshot truckers need to think about when getting insurance for their business.”
How much does Hotshot Insurance cost?
Running a hotshot trucking business comes with insurance costs, and on average, it’s around $14,000 per year. However, this can change based on your specific needs. Generally, you might pay anywhere from $7,000 to $22,000 per year. This insurance covers different aspects of your business:
- Trucking Primary Liability Insurance: This is about $7,000 a year.
- Non-Trucking Liability Insurance: This one is around $1,500 per year.
- Trucking Physical Damage Insurance: Expect to pay about $2,500 annually.
- Truck Cargo Insurance: This is approximately $3,000 per year.
For new trucking businesses, there might be an initial payment of $3,000 to $4,500. If you prefer monthly payments, it averages around $1,170. Monthly costs can vary, ranging from $580 to $1,800. Keep in mind that these are average estimates for new companies with single trucks and trailers. Your actual cost will depend on factors unique to your business.
Factors that Affect Hotshot Insurance Costs
One of the biggest factors that affects the cost of hotshot insurance is the type of cargo you are hauling. Insurers charge higher premiums to insure certain types of cargo, such as hazardous materials or high-value goods, due to the increased risk they pose. Insurance coverage requirements are higher for more expensive trucks, so the value of your truck also factors into it. Insurance costs can also be affected by your driving record and location. Companies may charge higher premiums to drivers who have a history of accidents or traffic violations, as well as to those who reside in areas with high rates of accidents or thefts.
What are the Hot Shot truck insurance requirements?
1. Liability Insurance
Liability insurance is the most important requirement for hot-shot trucking. Your truck causes damage or injuries to other people or their property, and this insurance covers them. States vary in their requirements for minimum liability insurance, but typically they require around $750,000.
2. Physical Damage Insurance
Accidents, theft, or vandalism cause damage to your truck and trailer, which are covered by physical damage insurance. The law does not require this type of insurance, but it is highly recommended.
3. Cargo Insurance
Cargo insurance provides coverage for the value of the goods being transported in case of damage or loss. Hotshot truckers are required by law to have this insurance, and the minimum coverage amount varies by state.
4. Bobtail Insurance
Bobtail insurance protects your truck when it is not hauling a trailer. Hotshot truckers who use their truck for personal use are recommended to have this insurance, although it is not required by law.
5. Insurance for occupational accidents.
Occupational accident insurance covers accidents that happen while on the job. Hotshot truckers who are self-employed or independent contractors do not need to have this insurance by law, but it is recommended.
[Conclusion]
Anyone working in the hotshot trucking industry needs to have hotshot insurance as a necessary expense. Although insurance can be expensive, you can save on coverage and guarantee that you have the necessary protection to safely and successfully operate your business.
