Have you been the transition from a paid trucker in Nebraska to an owner-operator in Nebraska? If so, we want to take this time to congratulate you. Being an owner-operator is a major step. It will not matter if you have one truck or if you are on your way to having multiple trucks. Once you make the decision to become an owner-operator, the only way to go from here is upwards. However, you may not go far if you do not have the proper insurance policies.
What is Owner-Operator Insurance?
An owner-operator insurance policy will provide you with the coverage and protection you need when the unexpected happens. In the trucking industry, the Federal Motor Carrier Safety Administration(FMCSA) requires that you carry a minimum of $750,000 worth of insurance liability. Compared to other mandates and laws in other industries, this is not a large amount.
While this is the minimum amount, you did not get into the trucking industry to make the minimum amount of income. This means that you may want to consider taking more than the minimum insurance policy. If you can afford more than the minimum insurance policy, we encourage you to take out more than the minimum insurance policy. If you take out only the minimum insurance policy and one day you are involved in an unfortunate accident, you are likely to lose a significant portion of your income because of your decision to only take out the minimum policy.
Are All Owner-Operator Insurance Costs the Same?
When we discuss insurance policies and costs in the trucking industry, we never talk about specific costs. The insurance coverage you need for your business will not be the same coverage that your fellow truckers will need. The coverage that fits your business will depend on how many trucks you have, the size of the business you are operating, and the number of drivers who need to be insured. There are different types of insurance policies that you can consider, including the following:
- Cargo insurance
- Physical damage insurance
- Non-trucking liability insurance coverage
- Bobtail insurance
Cargo insurance is needed when you are responsible for carrying goods from one location to the next. With the right cargo insurance policy, you will have the peace of mind you need if the unexpected occurs and the goods you are carrying become damaged. The perfect coverage for your business will depend on the value for the goods you are carrying.
Physical damage insurance coverage will be recommended to you if you have used a loan to finance your truck purchases. If you have an accident and you are carrying a physical damage insurance policy, you will be compensated for your truck’s value. If your policy includes bobtail coverage, you will be protected if you are using a tractor or truck without the trailer. You will be covered under bobtail insurance if you are using your truck for commercial purposes, and you can be protected when you are off the clock.
There are various requirements for those who own their own trucking business. There will not be a one-size-fits-all policy so it is important that you speak with the right insurance representatives so you can get the coverage that will be a perfect fit for your business. Contact us today to discuss your insurance options. We write owner operator insurance in Florida, Georgia, Texas, North Carolina, South Carolina, Illinois,Tennessee, Iowa & Nebraska.
