Understanding Your Commercial Truck Insurance Requirements When You Are An Owner-Operator

When you are a commercial truck driver doing business as an owner-operator, you need to be protected. Whether you work independently for yourself, or you are under a permanent lease obligation with a carrier, you have to know what types of insurance coverage you need in order to stay in business. When you want to protect your assets and make sure that your ability to earn a living stays intact, it's time to talk with your insurance provider about your commercial truck insurance options.

When You Drive as an Owner-Operator with a Permanent Lease

When you drive for a company under a permanent lease, the coverage you are required to carry is written out in your agreement that you've signed with the motor carrier. While the company you are leased under may cover you under Primary Liability Insurance, your lease may require you to carry your own liability coverage. This type of insurance will cover the cost of injuries to other people, or property damage if you cause an accident.

Other Coverage Your Lease Agreement May Require

Your lease agreement may require you to have other insurance protection on your vehicle, including non-trucking liability coverage, insurance for physical damage to your truck, and cargo insurance if the load you are hauling becomes lost or damaged. Read over your lease agreement carefully to make sure you have all the coverage you need in the event of a catastrophic accident that totals your truck. You can customize your coverage options to make sure you are properly covered in the event of an accident.

When You are an Owner-Operator Working Independently

If you are driving as an owner-operator and working for yourself, you'll need to think carefully about your commercial trucking insurance that you need. You'll have to invest in liability insurance, coverage for damage to property, and physical damage coverage. You can also purchase motor truck cargo insurance that will protect your cargo against theft, damage, or a fire. Check with your state regulations to make sure that you have enough coverage for the type of business you are involved in.

As you consider your truck insurance requirements, don't be afraid to get several quotes from insurance providers. In fact, insurance carriers expect that you are going to do some research before committing to a specific policy. When you have questions, ask your insurance agent before you sign your insurance policy agreement to make sure you are getting all of the coverage you need. Contact a company like Metropolitan Insurance Service Consultants for more information.