Every rig owner operator needs rig insurance.
Some types are required by law, while others are essential for proper maintenance of the rig. Still others may protect the owner operator’s livelihood in the event of unforeseen circumstances. With that being said, of the many types of rig insurance offered to owner operators, five should be considered by every owner operator.
- First and foremost, every rig owner operator must have individual operator insurance. Like standard operator insurance, this type of coverage provides the liability insurance required by law for all drivers.
- The second type of rig insurance every owner operator needs to consider is non-trucking liability. This type of rig owner operator insurance covers the driver and vehicle in the event that the rig is being used for a purpose other than which it is primarily insured for, i.e., moving one’s own personal belongings, if an an accident occurs.
- The third type of coverage every owner operator needs to consider is physical damage collision. This type of rig owner operator insurance covers repairs needed if the rig is involved in an accident or sustains weather damage, thereby ensuring the continued ability to carry on with business.
- The fourth type of insurance that needs to be considered is cargo insurance. If the cargo being transported is damaged or lost, this type of rig owner operator insurance will cover the cost.
- Finally, every owner operator needs to consider occupational accident insurance. In the event of an on the job injury, this insurance acts in the same capacity as worker’s compensation, compensating the owner operator for lost income and associated expenses, such as medical. Thus it is especially important.
Of course, there are other types of rig insurance available, and federal laws require specific insurance coverage if an owner operator is involved in interstate hauling. The amount required for liability insurance can vary (depending on whether or not the cargo is considered to be hazardous). States, in addition, also have their own insurance requirement laws, often based on the federal standards.
Owner operators rely on their rigs for their livelihood, and an accident can wreak havoc on their business and their lives. For this reason, having the right rig owner operator insurance is essential.
