Do you use pickup trucks to expedite cargo? Or are you an owner-operator of a trucking business? Then you must know about hotshot truck insurance. If you don’t then this blog will clear your all confusion about hotshot truck insurance and the need to have it!
The hotshot trucking business is a lot more than your truck, cargo, or trailer. It’s about protecting you against all kinds of risks whether it’s your driver, truck, or other drivers on the road. One unfortunate major accident can put a big financial hole in your business. This is why truck insurance is equally important for your commercial business as buying trucks.
Just don’t think your hotshot truck insurance is just a piece of paper to forget about it after purchase. Consider it as a future investment for your commercial business that will give you ample security for your company. Let’s dig deep to know more about this truck insurance and why trucking businesses need it!
Table of Contents
What is hotshot truck insurance?
It is a form of commercial auto insurance, especially for expedited transport of cargo with any pickup truck. Hotshot trucking has recently become one of the popular truck forms, especially in the US. Insurance is very helpful for businesses or individuals for transporting cargo using a trailer or pickup truck.
The coverage you get depends upon the policy you choose for your trucking business. Generally, the standard policies will cover three basic things for you:
Most of the time hotshot trucks involved in transporting cargo in a short span of time and delivering those things in time makes it a high-risk business. This sort of insurance policy is there to protect you in any accident case even the third-party liability claims including bodily injury, and physical damage to your truck, driver, or the other party. As you know, it is illegal to operate a truck without insurance coverage. So, to secure your clients, freight brokers, and yourself from any sort of damage, secure yourself with a commercial auto policy. This has some detailed benefits and reasons for you to opt for your commercial business. Let’s understand it further!
Need of hotshot truck insurance for your trucking business
If you ask do I need hotshot truck insurance for my trucking business? Our one and only answer to your question will be ‘Yes’, but wait we are not saying it without any ground. There are numerous reasons for you to buy one hotshot truck insurance to protect your trucking business and to ensure it’s smooth running without any financial hazard.
If you are operating a pickup truck to deliver LTL (Less than loads) with strict deadlines, that means you are a hotshot trucker. No matter you are operating it within State lines or across the lines, there are three categories of it:
- Class 3: 10,001-14000 Pounds
- Class 4: 14001-16000 Pounds
- Class 5: 16,001- 19,500 Pounds
Apart from the pickup truck, you need some specific types of trailers like Deckover trailers, Lowboy trailers, etc. So, if you are using these trucks and trailers to do smaller delivery in short time spans than the traditional trucking methods. It’s high time you should protect your business with suitable hotshot truck insurance. Some of the protection benefits you can get from these coverages are discussed as:
Truck and Trailer Damage
You can get paid for the damage caused to your truck or trailer due to theft, vandalization, fire, or any kind of collision. They will pay for either the repair or replacement. In many cases, as per your policy, they can pay for downtime in the case of the truck being out of commission or unavailable for use. This damage is divided into two parts mainly: Collision and Comprehensive.
Collision: This will protect your truck in case of damage caused due to any accident on road.
Comprehensive: This will protect your truck from non-collision damages caused due to fire, theft, or any other natural disaster.
Damage Caused to Other’s Property
If in a collision, other vehicles or any property get damaged by your truck, your insurance provider will cover the cost to repair or replace those items.
Damage or Loss to Cargo
This one is very helpful for you to protect your trucking business as the damage or loss to the cargo can be unbearable (in the case of expensive items) sometimes. It will protect the cargo or freight you carry. Also, it covers the cost paid to replace any item damaged during transportation. Many special policies can cover the ‘earned’ freights to compensate the clients if you are unable to deliver the goods on time due to some accident or issue.
Medical Cover for Injury to Others
If unfortunately, someone is hurt in an accident caused because of you, the company will pay for the medical bills and many other expenses.
If you are responsible for an accident and jumped into any legal trouble, then your liability coverage can assist you to cover the costs to deal with it.
The type and amount of coverage you need purely depends upon the rules and laws of the State you are operating, the type of cargo you want to haul, and many other driving factors. As you know, every hotshot trucking business varies from one another, So try to customize as per your business needs.
The Rub: Is it worth buying one for your trucking business?
Having hotshot truck insurance is not optional, it is the bare minimum you can have for your trucking business. If you own a hotshot company or planning to have one, get all your vehicle insured with suitable policies. This will give you the freedom to remain carefree about your business in any weather conditions or circumstances. Sure, it might feel you an added expense to your trucking business, but it is worth having it. It will save you in times of crisis or need.
However, keeping your company without protection can leave your business unprotected in case of potential losses, accidents, or injuries. That can end up costing you a lot in the future. So, be smart and save your business’ future. If you still have queries in mind, feel free to connect with us…We will serve you soon!
Hope you had a good read!