The insurance an owner-operator needs depends on one question first: are you running under your own authority, or are you leased on to a motor carrier? Transportation Risk Specialists helps owner-operators in Alabama, across the Southeast, and in every state where we’re licensed get the right coverage for their setup, placed with A-rated carriers.
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Owner-operators under their own authority
If you hold your own MC number, you are the motor carrier. That means you carry the coverage FMCSA and your customers require:
- Primary auto liability — At least $750,000 for non-hazardous freight in vehicles of 10,001 pounds GVWR or more, with your insurer filing proof with FMCSA. Many brokers require $1,000,000.
- Motor truck cargo — Not federally required for general freight, but brokers and shippers almost always require it.
- Physical damage — Covers your truck and trailer. If your truck is financed, your lender will require it.
- General liability — Some shippers and facilities ask for it.
- Trailer interchange — If you pull trailers owned by others under a written interchange agreement.
- Occupational accident — Protection for you if you’re hurt on the job, since owner-operators often aren’t covered by workers’ compensation.
If you’re just getting your authority, see our new authority trucking insurance page.
Owner-operators leased on to a motor carrier
Full details: insurance for leased owner-operators.
When you’re leased on, the motor carrier’s primary liability typically covers you while you’re under dispatch for that carrier. Read your lease agreement carefully, because it spells out what the carrier covers and what you must buy. Leased-on owner-operators commonly need:
- Non-trucking liability or bobtail — Liability coverage for when you are not under dispatch or not hauling for the motor carrier. See the difference below.
- Physical damage — The motor carrier’s policy usually doesn’t cover your truck. If you own it, you insure it.
- Occupational accident — Often required by the motor carrier under the lease.
- Trailer coverage — If you own your trailer, it needs its own physical damage coverage.
Non-trucking liability vs. bobtail
These two terms get mixed up all the time, and the difference matters if you have a claim.
- Non-trucking liability (NTL) generally covers you when you’re using the truck for a non-business purpose, such as personal errands while off dispatch, with or without a trailer attached.
- Bobtail liability generally covers you when you’re driving the tractor without a trailer, which can include some business-related driving, depending on the policy wording.
Policy wording varies by insurance company. Your lease agreement usually says which one the motor carrier requires. Send us your lease and we’ll match the coverage to it.
What we need to quote an owner-operator
- USDOT number (and MC number, if you have your own authority)
- Your CDL details and years of experience
- Truck and trailer year, make, VIN, and value
- Where the truck is garaged and the states you run
- What you haul
- Current declarations pages and three years of loss runs, if you’ve been insured before
- Your lease agreement, if you’re leased on
Owner-operator insurance FAQ
Do I need my own liability insurance if I’m leased on?
The motor carrier’s primary liability typically covers you while you’re operating under its dispatch. Most leases require you to carry non-trucking liability or bobtail for the times you are not under dispatch, plus physical damage on your own truck. Your lease is the deciding document.
Is occupational accident the same as workers’ compensation?
No. Occupational accident is a separate policy that can pay benefits if you’re injured on the job, but its benefits, limits, and terms differ from workers’ compensation. Rules on who must have workers’ compensation vary by state, so we review your situation before recommending either.
My truck is financed. What does the lender require?
Lenders typically require physical damage coverage with the lender listed as loss payee, and they may set a maximum deductible. Send us your finance agreement so the policy meets those requirements.
Owner-operator? Call 205-221-5466 or start your quote with your DOT number.