Owner operators keep the trucking industry and America’s economy moving. They are the asphalt cowboys hauling freight for thousands of miles. It’s a massive endeavor with risk and challenges. Finding owner operator insurance is often a challenge.
If you decide to purchase your own semi truck for business use, then you’re going to need to insure it. Owner operator insurance falls into two main categories:
- Owner operators with an MC number
- Owner operators leased on to another company’s MC number
We’ll breakdown what you coverage you need and where to find it.
Owner Operators with an MC Number
If you are an owner operator who has their own motor carrier (MC) number, also known as operating authority, you need to purchase insurance to meet the Federal Motor Carrier Safety Administration (FMCSA) requirements.
At a minimum, you need Auto Liability. You’ll definitely need more coverage than that to meet broker requirements.
The FMCSA mandates you carry a minimum of $750,000 Auto Liability to activate your MC number. Brokers are another story – most freight brokers require $1,000,000 combined single limit.
Here are coverages we recommend you carry:
- Auto Liability
- Physical Damage
- Motor Truck Cargo
- Reefer Breakdown Endorsement
- General Liability
- Trailer Interchange
Some insurance companies offer additional coverage such as roadside assistance, rental reimbursement, emergency family travel, personal effects coverage, and more. Visit with your insurance agent about coverage endorsements.
Leased On Owner Operator Insurance
An owner operator who chooses to lease on to a motor carrier has fewer insurance requirements. Most leased on truckers are insured through the company they lease on to, but that doesn’t mean you’re covered all the time. Most leased on truckers need their own insurance to protect their truck and coverage for bobtailing.
We recommend leased on truckers purchase Bobtail Insurance or Non Trucking Liability. This provides coverage when the truck is not connected to a trailer and not operating for business use.
An example is you drop a load off and take your truck to the store to purchase groceries. On your way home, you rear-end a passenger vehicle and cause property damage. This is when Bobtail Insurance or Non Trucking Liability insurance kick in. Read your owner-operator lease agreement for your company’s definition of business use.
Liability is only part of the equation. You also need to protect your truck for damages that occur during a collision or other-than-collision claims. Consider purchasing physical damage insurance for this.
We recommend leased on owner operators purchase the following coverage:
- Bobtail Insurance or Non Trucking Liability
- Physical Damage
- Trailer Interchange
- Roadside Assistance
Where can I purchase Owner Operator Insurance?
You’re in the right place. Fill out a quote request form and a licensed insurance agent from a premier commercial truck insurance agency will contact you within minutes. It takes 24 to 48 hours for most quotes to come back, but some are same-day.
We recommend Trucking Insurance Services for your commercial truck insurance needs.
