Owner Operator Insurance

What you need to know about owner

operator truck insurance.

 

For many of you deciding to start up your own owner operator business is a difficult decision.  Should you simply lease under another authority or should you start up you own owner operator business.

In many cases it may be less expensive and less headaches to sign on under another authority.  When you do this, you will still need to carry your own non-truckers liabiliy with physical damage coverage.

The non-truckers liability covers you when your truck is not under dispatch with the primary authority you are leased under.  The physical damage coverage covers you while you are under dispatch and it covers you while you are not under dispatch.

Consequently, most of the premium for this type of coverage is under the compensation and collision coverages as they cover your vehicle all of the time.

 

In the event you decide to start up your own owner operator business, you will need to purchase your own commercial auto coverage/truck insurance coverage.

If you are a new start up company, your best market to aquire insurance will be through an agent that sells Progressive Insurance.

You will need to stay with Progressive for about three years with a good no loss history, prior to being placed with a more competive insurance carrier.  Some insurance carriers will consider companies that have had at least one full year of prior primary truck insurance with no losses.

Many other truck insurance carriers do not like to write new ventures and unitl such time as you have a three year no loss track record, these carriers will not even quote your companies truck insurance.

 

As you may have heard, Hallmark will no longer accept new ventures on trucking for hire classes of business.  In the past, Hallmark was one of the go to insurance carriers for new ventures.  However, if the account is 100% oilfield trucker exposure they will potentially consider it.   

Hallmark defines a new venture as the following:

•  Operations that have less than one year of continuous commercial insurance coverage in their name

•  Operations with vehicles insured under a personal lines policy and are now obtaining commercial coverage.

•  Lapse of coverage of more than 60 days.

•  Truckers who were operating under someone else’s authority and are now going out on their own.

•  Non-trucking liability does not qualify as prior insurance.

Here is an outline of several Truck Insurance Carriers Insurance Requirements.

 

IAT Specialty (Occidental/Wilshire)  (admitted in AR, IA, IL, IN, LA, MI, MN, MO, NE, NC, OH, OK, PA, SC, TN, TX, VA, WI)

• Any size account
• For fleet accounts 11+, Must be submitted
• No dump trucks for hire
• Looking for 3+ years in business
• No new ventures
• Tractor/Trailer only – no hotshots, medium trucks or business auto
• No public auto
• In house binding authority

Hallmark (admitted in TX and MO – non-admitted in OK and AR):

• Any size fleet (1-200)
• One or more years in business only. No Longer a New Venture market UNLESS the risk is 100% oilfield-related
• No dump trucks for hire
• No flatbed operations unless 100% oilfield or 11+ power units
• No public auto
• In house binding authority 1-15 power units

Northland (admitted in TX and OK):

• 1-10 power units in TX and up to 200 units in OK
• In house binding authority for 1-10 power units
• No new ventures (prefer 6+ years in business in TX)
• AL/PD/MTC package product available
• Market is currently looking for seasoned accounts with 6+ years in business in TX, 2+ years in OK
• Market is looking to grow in Oklahoma and accounts need 2+ years in business to be considered    
• Now accepting 11+ fleet accounts (trucking) in the below 37 states, Must be submitted 
  • AZ, AR, CO, CT, DE, GA, ID, IN, IA, KS, KY, ME, MD, MI, MN, MS, MT, NE, NV, NH, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, WA, WV, WI, WY

National Indemnity (both admitted and non-admitted in TX):

• Any size account, including public auto and tough to place
• New ventures (all classes of business are acceptable)
• Trucking operations with CSA alerts (doable with plans of action)
• Public Auto available
• Towing operations are acceptable – not competitive unless a new venture and/or other market is getting off the risk.

Canal (available in all states EXCEPT AK, CA, FL, HI, LA, MA, NJ, NY)

• New ventures are acceptable with effective date 1/2/19 or later!
• Dump trucks in Texas are acceptable at 2+ years
• Tractor/Trailer only – no hotshots, medium trucks or business auto
• Long haul, local, intermediate available
• No public auto
• State National pass through endorsement is available if A rated paper if needed
• For fleet accounts 11+, Must be submitted

Scottsdale (Nationwide E & S) (admitted in TX, OK, AR )

• 1-40 power units
• If a submit to Nationwide, we MUST have the MVRs with a complete submission.
• No new ventures
• AL/PD/MTC/GL package product available (monoline coverage is not available)
• Market is currently looking for seasoned accounts with 2+ years in business and long haul radius.

 

Now you can see what exactly each of these insurance carriers is looking for when writing owner operator insurance.

There are many other insurance carriers that can write owner operator insurance, but many of them will request similar past history requirements prior to placing your owner operator insurance coverage.

 

Owner Operator insurance rates can very based on several different factors

 

Owner operator insurance rates can vary widely based on many different factors. Here are a few factors that drive the premium that you have some control over.

• Your credit scores can affect your premium. You should always do what you can to increase your credit scores.  This will help save you money on your insurance coverage.
• The number of years you have held your CDL as well as your driving record will also affect your insurance rates.
• Proper signage on your truck is also important.  
• Safety items such as fog lights and deer/brush guards can also affect your rates
• Do you all the proper signage on your truck?
• Are you able to pay the premium in full? Many carriers offer discounts if you do this.
• The high your deductible is the lower your insurance premiums will be.
• Make sure your cargo coverage is correct for the type of loads you are hauling.  For example if you are rated to haul automobiles, but you never do, then you would be better off not carrying this class code.  Other classifications might rate better for you and the types of loads you are hauling.
• Make sure your SAFER scores are accurate. The data on this system needs to be correct.  Make sure extra accidents, inspections and the number of vehicles are correct in the system.  You simply do not want to be paying higher rates because the infomation is incorrect on their system.  Make sure the FMCSA data is correct.
• Having your logbook up to date is a must.  Logbook violations will increase your premiums.

Click on the link below for eTrack Certified ELD 

 

 

 

 

 

 

 

 

Use this information as a guide for you when condering to become an owner operator.

It might just help you save some money and that goes right to your own bottom line.  $$$$