Owner Operator Insurance is a form of business insurance designed specifically for independent over-the-road drivers. However, the types of coverages selected are widely dependent on whether drivers work under a lease from a particular motor carrier, or work under their own authority as a truly independent driver. Insurance limitations are also dependent upon whether drivers work for a motor carrier or for themselves, with some of the strictest limitations being placed on those not working under a lease.
One of the standard provisions of owner operator insurance is Liability coverage, which like all business insurance policies, is intended to cover the personal injuries and property damage that business activities can cause. For drivers working under the lease of a motor carrier, this coverage is often provided through the motor carrier company. Liability insurance is often not enough, however, as the nature of the trucking business adds additional areas in need of protection.
Physical Damage coverage is a strongly recommended addition to owner operator insurance policies, as this is the coverage necessary to pay for truck repairs should the truck be involved in an accident. It can also pay for non-accident repairs, such as damage caused by falling branches or hail, and can cover the cost of replacement should the truck be stolen during an over-the-road run. However, Physical Damage coverage is usually the responsibility of the driver to purchase, regardless of whether they work under a lease.
Motor Truck Cargo coverage is another addition that strongly recommended, as this provides coverage for the cargo that is being hauled. This includes accidents, as well as fire and theft, providing additional security to both motor carriers and independent drivers. Non-trucking Liability may also be added, to cover damages caused by drivers that are not related to the actual service of driving. Owner Operator Insurance
While insurance carriers apply limits on all types of owner operator insurance, the limits tend to be less strict for drivers are working under a lease. This is because multiple policies are usually purchased by a single motor carrier to cover all of their hired drivers, which can amount to an established credibility with their chosen insurance company. There is also the fact that motor carriers are generally thought to be less likely to miss premium payments than are independent drivers, which lowers the risk category in regards owner operator insurance.
Owner operator insurance is required by all over-the-road drivers, regardless of whether they work under the lease of a motor carrier or under their own independent authority. Physical Damage and Cargo coverages are strongly recommended in addition to standard Liability, although is it usually up to the drivers to purchase the additions. Coverage limits are also common, although the established credibility of motor carriers often makes them more lenient towards drivers working under a lease. Shopping around is recommended when selecting owner operator insurance, either independently or in conjunction with policies offered by motor carriers, as the comparison of both coverages and terms can ensure that sufficient protection is provided for any over-the-road haul.