We are faced with a highly competitive marketplace. Stakes are much higher than they ever were. A poor decision will prove to be fatal. Becoming something like Landstar owner-operators will basically mean that you are an entrepreneur. Because of this, insurance becomes much more important than with a regular employee job.

Owner operators that want to have huge success in trucking have to start running under the coverage of a much larger motor carrier. That authority will help them to get clients faster and expand the business at a rate that would practically be impossible when working alone. Such a move is definitely one thing that you want but you have to also read the fine print associated with the contract you sign. In many cases you may end up faced with a lack of insurance coverage. Keep in mind you will also likely be in charge of costs like fuel in addition to insurance, which is why many owner-operators rely on factoring your freight bills to accommodate those up front costs.

Truck driver

Discuss Coverage With The Carrier

That is one thing you have to remember at the end of the day because the more you discuss, the easier it will be to make a very good choice. Many deductibles can appear and you want to be sure that the auto liability coverage sent is suitable for your current needs. If this does not cover some aspects that are really important for your business, you will need extra coverage.

In many cases the insurance contract will highlight the money that you would be required to pay in various situations. Deductibles are presented and if there is a need to have an escrow set up, it is something you will have to remember. Choose only the options suitable and be sure that you will always understand everything that is associated with the contracts.

Necessary Liability Coverage

It is always important that you know exactly what liability coverage you will have to carry in association with the carrier and with your personal necessity. Being leased to motor carriers while operating trucks is a true necessity. Auto liability coverage (sometimes referred to as primary liability) is what will be seen as a basic necessity. However, what is very important is to be sure that everything is covered. This means you have to see what is transported and be sure all is covered. Something like this is definitely complicated to do.

Some of the options that have to be remembered when referring to liability include:

  • Non-trucking liability – will cover you when you are not pulling the trailer.
  • Bobtail liability – you are covered if a bobtail.
  • Unladen liability – offering coverage when not loaded.

Remember that you also need some extra coverage that would protect the equipment that you own. This is one thing that few people know about until it is too late. Most of the liability insurance will cover problems that appear with the properties of others. That is something you have to remember.

On the whole, working as an owner-operator is something that you need to be serious about. If you do not have proper coverage, problems will appear. Always use the coverage that is the best in your specific situation.


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