How much does hotshot insurance cost?

Hotshot truckers pay an average of $896 per month, or $10,757 per year, for commercial auto insurance.

This policy pays for legal fees, medical treatment, and repairs if your pickup truck or box truck injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a business. Additionally, the Federal Motor Carrier Safety Administration (FMCSA) requires $75,000 in auto liability insurance and $5,000 in cargo coverage for truckers who cross state lines.

You'll likely need more than the minimum for commercial truck insurance. Brokers and shippers usually ask for higher limits on liability insurance and cargo insurance than those required by state laws or FMCSA regulations.

Other policies that hotshot drivers should consider include non-trucking liability (NTL) insurance for coverage while you're driving a commercial truck off duty, and bobtail insurance for any driving that occurs without a trailer, such as between loads.

Insurers look at several factors when determining commercial vehicle insurance rates. That includes the type of truck, the type of trailer (bumper pull, gooseneck, flatbed, etc.), how often they are driven, where they are driven, your cargo, and the driving history of your employees.

The coverage options you choose, such as physical damage coverage or an additional insured endorsement, will also affect your premium. Your U.S. Department of Transportation (USDOT) safety rating can also have a tremendous impact.

If you're looking for cheap hotshot insurance, you can opt for lower limits or a higher deductible. You'll also save money if you skip add-ons like comprehensive coverage, and hire experienced truck drivers with clean driving records.

For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

Hotshot trucking businesses pay an average of $32 per month, or $388 annually, for general liability insurance.

Also called public liability insurance, general liability insurance covers common third-party lawsuits related to bodily injuries and property damage. For example, a client could trip over a box in your office and suffer a concussion, or break their smartphone in the fall.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For instance, a hotshot business could get sued if their logo looks too similar to that of a competitor.

Below is the average general liability policy for hotshot companies that buy from Insureon:

Insurance premium: $32 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

Insurance companies consider several factors when calculating the cost of your general liability policy. That includes the coverage limits and deductible you choose, your business operations, your business revenue, and any additional insured endorsements.

You can save money on general liability coverage by buying it together with commercial property insurance in a business owner's policy (BOP). This cost-saving bundle protects against both common third-party lawsuits and damage to your office and business property.

For hotshot trucking businesses, the cost of workers’ compensation insurance depends primarily on the number of employees you have and their risk of injury.

Workers' compensation insurance covers medical bills related to employee injuries, such as a driver who strains their back while loading heavy cargo. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Because hotshot drivers face a higher rate of injuries compared to other professions, they can expect to pay a higher premium for this coverage.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Businesses with employees typically must purchase workers' comp to comply with state laws and avoid penalties. For example, businesses in California and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for owner operators as a financial safety net and for peace of mind.

The cost of workers' comp varies widely in the hotshot trucking industry. It depends on several factors, including the number of employees you have, their occupational risks, and your claims history.

You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims. Some insurers may offer a discount for hotshotters with a commercial driver's license (CDL) versus non-CDL drivers.