Hotshot Trucking Insurance

What is hotshot trucking?

Hotshot trucking is a faster, smaller, and more nimble way to get urgent shipments to their destination. These truckers typically drive Class 3, 4, or 5 trucks, like a dually or fifth wheel pickups, and cover a smaller delivery area than long-haul truckers.

Often, hotshot drivers specialize in a specific route, customer, or destination, transporting cargo that usually requires a quick turnaround, like medical supplies, manufacturing materials, and construction equipment.

Who needs hotshot insurance?

Hotshot truckers who deliver time-sensitive cargo need commercial auto insurance to protect themselves, their vehicles, and their freight. Hotshot truckers should look for a tailored commercial auto insurance policy because of the unique nature of their on-demand service. You can count on Progressive Commercial to give you flexible coverage options and professional support for your business needs.

What type of hotshot insurance do you need?

If you operate across state lines, the Federal Motor Carrier Safety Administration (FMCSA) sets the minimum hotshot insurance requirements. If your truck is over 10,000 pounds, you'll need at least $750,000 in liability coverage. The specifics come down to your truck's size and cargo.

Truckers who only work in one state might have different insurance guidelines. Some states mirror the FMCSA rules, while others set their own standards. Be sure to check with your state's transportation authority to see how much coverage you need.

Keep in mind, you might have to get other types of hotshot truck insurance, too. Employers, customers, and partners can set contractual requirements that you'll need to follow. For example, clients commonly call for cargo insurance to protect their freight.

If you need support, you can start an online quote or talk to an expert agent to customize a policy that keeps you protected.

Insurance coverages you might need for your hotshot trucking business include:

Vehicle liability for hotshot trucks

Liability pays for bodily injury and property damage to other people or their property if you are at fault for an accident. This basic coverage is required for all commercial vehicles.

Hotshot cargo insurance

Motor truck cargo insurance protects your freight if it gets lost or damaged in transit. It also covers your customer's shipping costs if a load doesn't arrive, which is especially important for time-sensitive deliveries.

Physical damage coverage

While liability pays for damage to others' property, physical damage coverage pays for damage to your vehicles. If your truck hits an object or is stolen or vandalized, collision coverage and comprehensive insurance can pay to repair or replace your truck or trailer.

Non-trucking liability insurance

Non-trucking liability protects your truck if you drive it for personal reasons. It helps pay for costs associated with third-party bodily injury or property damage and related legal expenses when you're off the clock.

Rental reimbursement with downtime

If your hotshot truck is damaged in an accident, rental reimbursement with downtime can cover the cost of renting a replacement. It can also pay for lost income in certain cases. For instance, if you can't find a suitable rental while your truck is being repaired and can't run deliveries for a short period of time, this coverage can pay for some of your missed revenue.

Trailer interchange insurance for hotshot drivers

If you haul trailers that you don't own, trailer interchange insurance covers damage that happens while they're in your possession, even if they're not attached to your truck. You'll need a formal interchange agreement for this insurance to protect non-owned trailers.

How much is hotshot insurance?

Various factors affect hotshot insurance costs, including the type and size of your truck, the cargo you haul, the distance you travel, and your driving history. The city and state you live in can also influence your rates. Learn more about commercial auto insurance by state.

When you get a Progressive Commercial quote, ask about vehicle insurance discounts. You can save by having multiple policies, paying in full, and insuring your personal vehicles with us.

Filing requirements for hotshot truckers

Federal and state filings are usually needed for truckers who operate under their own authority. If your business specializes in transporting hotshot loads, make sure you're covered with these important documents:

• Truck class: Hotshot drivers typically use Class 3, 4, or 5 trucks with a trailer and a gross vehicle weight rating under 26,001 pounds.
• DOT medical card: You need to pass a medical exam and obtain a Department of Transportation (DOT) medical card if operating vehicles over 10,000 pounds or transporting hazardous materials.
• USDOT number: This requirement applies if you drive vehicles over 10,000 pounds or haul freight across state lines.
• BOC-3 filing: If your business crosses state lines, you'll have to file a BOC-3 form with the FMCSA.
• BMC-91 filing: You'll need proof of liability insurance if you transport passengers or cargo across state lines.
• MCS-90 endorsement: This legal endorsement guarantees your insurer will pay for any bodily injury or property damage caused by your business.
• Electronic logging device (ELD): If your truck was manufactured after 2000 and you operate interstate, you'll need this device to track your service hours.

Progressive Commercial makes this step easy. Once you file for authority, we can issue filings for you. It's a simple process that keeps you compliant so you can focus on the road ahead.

Do hotshot truckers need a commercial driver's license (CDL)?

Whether you need a commercial driver's license typically depends on your truck's size and weight. You'll need a CDL if the truck weighs more than 26,001 pounds, or if you're towing a trailer over 10,000 pounds.

Although having a CDL isn't mandatory if you're hauling goods with a smaller, lighter vehicle, some freight companies may require this license for their own protection. It also gives you more flexibility in the jobs you take since you won't be able to transport heavier cargo or hazardous materials without one.

Why choose Progressive Commercial for your hotshot business?

For over 50 years, Progressive Commercial has been a reliable partner for businesses like yours, offering flexible coverage, affordable rates, and excellent customer support. These qualities have made us America's #1 commercial auto insurer.^* We also offer a robust claims service and a network of trusted repair shops. Start a quote today to get the protection you need.