Best Hot Shot Insurance Companies of 2024

What is hot shot truck insurance?

Hot shot truck insurance is a collection of commercial insurance policies, such as commercial auto and general liability, that protects hot shot trucking businesses.

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Common coverage includes:

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• Primary Liability
• Cargo
• Physical Damage
• Trailer Interchange
• General Liability
• Workers’ Compensation or Occupational Accident Insurance

What is considered hot shot trucking?

Hot shotting is a specific type of trucking that focuses on smaller loads delivered in the fastest time frame possible.

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Hot shot truckers typically use medium-duty pickup trucks with trailers to transport heavy equipment, cars, livestock, RVs, and oil pipeline equipment in states like Texas, Oklahoma, and California.

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Hot shot trucking can be lucrative work due to shipper urgency and the higher fees they are willing to pay.

Hot Shot Insurance Requirements

Required Coverage:

• Primary Liability – Provides liability coverage to third parties for at-fault accidents while on the road. Though the FMCSA requires a minimum of $750k in coverage, many brokers and shippers require $1M+. Owner operators leased onto a motor carrier will have this coverage provided by the carrier.

• Cargo – Protects the goods being transported. While not required by law in most cases, all shippers and brokers still require their motor carriers to carry cargo insurance. Companies without cargo insurance will have trouble booking loads.

Common Coverage:

• Physical Damage – Covers physical damage trucks and/or owned trailers. While not required by law, most vehicle owners carry physical damage insurance to protect their investments.

• Bobtail or Non-Trucking – Owner operators leased onto a motor carrier do not need to carry primary liability or cargo insurance but will need to carry bobtail or non-trucking liability (NTL) for when they are not driving under dispatch.

• Trailer Interchange Coverage & Non-Owned Trailer – While both policies provide physical damage coverage to non-owned trailers, trailer interchange requires an interchange agreement and provides coverage the entire time a trucker has the trailer in their possession. Non-owned trailer, on the other hand, does not require an agreement but only covers the trailer while it is physically attached to the truck. Neither covers any damage caused by the trailer, which would be covered by primary liability.

• General Liability – Offers coverage for work-related incidents that aren’t covered by primary liability. For example, any actions of the driver while they are loading, unloading, or at a truck stop.

• Workers' Compensation – Carriers with W-2 employees are legally required to carry workers’ compensation insurance in most states. This coverage provides medical and wage benefits to employees injured on the job.

• Occupational Accident Insurance – Similar to workers’ compensation insurance, occupational accident insurance covers medical payments and lost wages. However, this coverage is primarily intended for independent contractors and not for workers classified as employees (though some states allow this). Premiums can be paid by the carrier or the owner operator depending on the situation. 

MCS-90 Requirements

The MCS-90 is an endorsement that is attached to a motor carrier’s insurance policy to prove that they have the minimum required protection for public liability in an at-fault accident.

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Any trucking company that operates either intrastate or interstate is required to carry the MCS-90 endorsement for each vehicle.

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BMC-91 Requirements

BMC-91 is a filing the FMCSA requires to guarantee the motor carrier has enough liability insurance to cover the risk of transporting cargo across state lines. The BMC-91 is also required when hauling hazardous materials.

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Coverage must include bodily injury, property damage, and environmental restoration.

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MCS-90 vs BMC-91

Often confused, the MCS-90 is an endorsement that motor carriers need to carry on their insurance policy. The BMC-91 is paperwork that the insurance company must file with the FMCSA to verify that the MCS090 endorsement has been issued.