As the owner-operator, you are the one in charge. You are responsible for every aspect of your business— from ensuring the truck is running well to making sure the load is secure. But while you may have the freedom to be your own boss and make your own decisions, it doesn’t come without risks.
Protect your personal and business assets with owner-operator insurance.
Understanding the Risks
Owner-operators in the trucking industry face risks both on and off the road. And many of these risks can lead to significant financial losses without the right insurance coverage.
Accidents. As a truck driver, you spend a lot of time out on the road. This gives plenty of opportunity for an accident to happen, whether with other vehicles, pedestrians, or property. The damages that result from these accidents can add up.
Truck damage. You need your truck to perform the duties of your business. When it becomes damaged, it can significantly interfere with your day-to-day operations. Repairing it can be expensive.
Cargo damage. You are responsible for keeping your cargo safe. Mishandling it, causing it to spill out on a highway, or damaging it in any way can lead to very large claims filed by the shipper.
Legal liability. Anytime you are involved in an accident that was your fault, you run the risk of being sued. Legal cases can stack up attorney fees, court costs, and the like, making them very expensive to fight.
Legal Requirements of Owner-Operator Insurance
To keep your business running successfully, you want to make sure you comply with all regulations. And that includes having the proper insurance coverage. After all, owner-operators are required to have specific coverages that vary by state.
Take the time to get to know the laws in your state so that you are always protected.
Common Types of Insurance – and Why You Need Them
All owner-operators should have liability insurance, cargo insurance, and physical damage insurance. However, it is worth noting that there are other types of policies available that may benefit your business, too.
Liability Insurance
Liability insurance is essential for any owner-operator. This type of insurance protects against any injuries or damage that occur as a result of your truck — accidents in which you were at fault. They will cover the cost of repairing the damage, as well as the medical expenses incurred.
Cargo Insurance
Damaging or losing your cargo due to things like theft or damage can lead to a financial loss and the potential loss of a client. While on the road or off, cargo insurance protects the goods from theft, damage, or other causes.
Physical Damage Insurance
Accidents, theft, vandalism, natural disasters, and weather can all cause physical damage to your truck. As an owner-operator, this physical damage can halt business while you wait for repairs or replacement. It is an important part of protecting your assets and mitigating risks.
Additional Insurance Coverage
There is a long list of additional insurance coverage that can help you to build a policy your business needs, such as:
- Leased operator insurance
- Finance and lease gap insurance
- Motor carrier deductible buy-down coverage
- Non-owned trailer coverage
- Roadside assistance coverage
- Workers compensation insurance
As an owner-operator, your goal is to keep your truck operating efficiently so that you can maintain the success of your business. When you have the right insurance policies in place, you are protecting yourself from the very risks that can devastate your business. And that’s why owner-operator insurance is a crucial component.
Daniel & Henry provides comprehensive, value-added commercial truck insurance solutions designed for your trucking business. To ensure you are covered no matter the situation, learn more about their coverage options at https://truckerinsure.com or call 877-406-5915.