Hot Shot Trucking Insurance Requirements: Complete Guide

Primary liability is non-negotiable. It pays for damage you cause to other vehicles or people. The federal minimum for most for-hire freight is $750,000, but in practice most shippers and brokers require $1,000,000. Set your floor there.

Premiums for $1M liability on a new authority hot shot run $7,000 to $14,000 a year, with surcharges if you are under 30, have at-fault accidents, or run particularly hazardous freight.

Cargo insurance pays for the freight in your truck if it is damaged or stolen. The industry standard for hot shot freight is $100,000 of cargo coverage, but high-value runs (oilfield equipment, automotive parts) sometimes call for $250,000.

Expect $800 to $1,800 a year for $100,000 of cargo coverage. Most shippers will not give you a load without it.

Physical damage covers your own truck and trailer. It is technically optional, but if your rig is financed your lender will require it. Premiums vary heavily with the truck's value — a $60,000 dually and $20,000 gooseneck might run $2,500 to $4,000 a year.

If you own your truck outright and can absorb a total loss, you can run without phys-dam. Most operators don't.

Non-trucking liability covers you when you are driving the truck without a load attached to a freight contract — for example, deadheading home or running errands. It is cheap, usually $300 to $500 a year, and it patches a gap that primary liability does not cover.

If you pull trailers you don't own (some hot shot setups do this), you'll need trailer interchange coverage, which usually runs $200 to $400 a year per trailer covered.

General liability is a smaller policy that covers non-trucking business activities. Most hot shot operators carry $300 to $600 a year worth.

For a new authority hot shot operator, the standard package is: $1M primary liability, $100k cargo, physical damage at full value, non-trucking liability, and general liability. That bundle typically lands between $9,000 and $18,000 the first year, dropping after you have 12 to 24 months of clean operation.