Insure Your Business and Safeguard Your Success: Essential Tips on Owner-Operator Insurance

In today’s dynamic business landscape, owner-operators face many risks and challenges that can make or break their entrepreneurial dreams. As the captain of your own ship, you understand that protecting your business is crucial to its survival and growth. But with the vast array of insurance options available, navigating the coverage world can feel like an uphill battle. This article will provide some essential tips on owner-operator insurance. 

Learn About Several Insurance Policies That Could Be Useful to Your Transportation Business

Owner-operators need to understand the fundamentals of the commercial truck insurance policies they’ll need to protect their transportation business. Here are four types of insurance that virtually any transportation business can use.


With liability insurance, you can shield your tractors and trailers from potential damages, ensuring a swift recovery for your company when setbacks occur.

A minimum coverage of $750,000 is typically required for owner-operators, although this figure may increase if your operations involve hauling hazardous materials or handling higher-risk loads. To provide comprehensive protection, we strongly advise adding physical damage coverage. This additional safeguard extends to your truck drivers, shielding them from hazards like treacherous road conditions, unpredictable weather, and other sources of potential damage. 

Cargo Coverage

Cargo insurance safeguards the items you transport. It is essential to ensure that the cargo you are transporting is insured in case of an accident. Only owner-operators operating under their authority are eligible for cargo coverage.

Non-Trucking-Liability (NLT) and Bobtail Coverage

This coverage is mandatory for any owner-operator working for a transportation firm, as it safeguards the company’s CDL drivers and its most valuable assets—its tractor-trailers. If your drivers use their trucks for personal reasons while off the clock, NTL has your back. This could be anything from a trip to the grocery store to a visit with family and friends.  

When combined with NTL, bobtail insurance functions similarly to a business umbrella policy. It aids in keeping your transportation business safe in ways that NTL, cargo insurance, and liability policies might not.  

The Factors That Determine Insurance Prices

The following are two criteria that rig insurance brokers will use to evaluate your transportation business and provide you with a quote:

Level of Experience

First, you’ll need a commercial driver’s license (CDL) valid in the state where your transportation business is based, and you’ll ideally have three years of CDL experience. Insurance agents want to feel confident when they insure owner-operators and their trucking business, so the more experience you have, the better. Your quotes will be significantly higher if you don’t have the required experience.

Driving Record

Second, you must have a spotless driving record. Trucking insurance companies will investigate your inspection records, hours in service, driver fitness, logbook infractions, and truck maintenance. They will also inspect your tractor-trailers for fog lights and deer guards to ensure they are up to code.  

Determine What Your Carrier Will Provide

If you are a lease-purchase driver or owner-operator working with a single carrier, the carrier may provide insurance. If they do, it’s in your best interest to carefully peruse the fine print before deciding whether or not to proceed.

Wrapping Up

As an owner-operator, protecting your business should be a top priority. Commercial truck insurance is a crucial shield, providing peace of mind and financial security in the face of unforeseen events. 

At J.E.B. Insurance Services, LLC, we specialize in providing comprehensive insurance solutions tailored to the needs of owner-operators like you. Our experienced team is dedicated to helping you navigate the complex world of truckers insurance, ensuring you have the right coverage to protect your assets and minimize disruptions. Don’t leave the fate of your business to chance – contact us today to learn more about our services. We provide owner-operator and commercial truck insurance in North Carolina, Nebraska, Georgia, Florida, South Carolina, Texas, Iowa, Tennessee, and Illinois. 

David Ott

David Ott