Hot shot trucking frequently has increasing demand for drivers who are interested in transporting smaller, time constrained shipments but don’t hold a Commercial Drivers license. But even if you are a beginner in hot shot trucking or you are already a professional who wishes to expand his hot shot business the most important question that you need to answer is the one that says: Are you required to get commercial insurance? Yes is the clear answer and this is the reasons why you should.
Deciphering Non-CDL Hot Shot Trucking
Non-cdl hotshot trucking is basically movement of loads with the use of lighter vehicles like pickup trucks, which do not weight more than certain thresholds that would make a CDL be required. Quite the contrary, this method is more flexible and accessible than obtaining and driving a heavy truck requiring a CDL. However, you will not be exempt from meeting legal and insurance obligations. The type of commercial insurance that you have plays a critical role in how well your business operates as well as how well they comply with laws set by the federal and state governments.
Points Proving the Necessity of Commercial Insurance
1. Legal Requirements
Regardless of whether your setup of hot shot trucking requires a CDL, you are still in a vehicle for commercial purposes. According to the law in almost all states, every car that is utilized for the purposes of earning income is a commercial vehicle and needs insurance.
In the event that there is a lack of sufficient coverage, fines, penalties, and in some instances, the loss of your operational authority could be some of the repercussions that you will face. As previously mentioned, you will be exposed to possible risks if coverage is lacking.
2. Protection Against Liability
It is a known fact that accidents happen and once they occur, you might get exposed to property loss, sustain injuries, or other losses. These types of consequences are avoided with commercial insurance that protects you from financial loss such that a single accident does not put the integrity of your business at risk.
3. Building Trust with Clients
A significant portion of clients, in particular, from construction and manufacturing sectors often require insurance to be available as a protection requirement before they give you their loads. Comprehensive commercial insurance coverage not only protects you but also enhances your professionalism which makes you a preferred option for many potential clients.
Types of Commercial Insurance You May Need
The choice of insurance coverage for your non-CDL hot shot trucking operation is defined by the nature of your business. The most important ones are:
Liability Insurance:
A type of insurance that covers damages from accidents caused by your vehicle that affect other persons’ property or cause injury to another party.
Physical Damage Coverage:
Ensures that your truck and other equipment that are used in the operation are not lost or damaged due to accidents, theft or severe weather conditions.
Cargo Insurance:
This insurance is needed to cover the value of the goods that are being shipped.
Non-Trucking Liability Insurance:
This type of insurance takes care of events that happen when you’re not involved in hauling a load. In order to make a policy that will suit your individual needs and adhere to industry regulations, it would be best to speak with an appropriate and knowledgeable insurance agent.
The tips provided below should be verified to ensure they are compatible with your specific requirements and include the intended features. The following tips are designed to assist you in purchasing Commercial Insurance, particularly in the hot shot trucking business that does not require a dcl license.
1. Identify the Clients who are likely to place orders and establish the routes you will take.
2. Evaluation of policies of different people, the best option at the moment will be the most cheaper with more reliable coverage.
3. Consider obtaining complete coverage for the machinery in case of an accident.
4. Document all the information regarding the clients with all accounts payable, shipments already received in stocks, inventory turnover and funds on hand, or accessible through the accounts in the bank. The paperwork of each client is highly useful for budget estimation.