Question about Cargo insurance and who shoul pay for it..

first why would you open a trucking company then run under your friends authority..you buy the truck and trailer and hire the driver then why didnt you just go get the rest and have it as YOUR company... just curious

 

If your your running under his authority then your leased. Why don't YOU call an insurance company and ask for a quote. You don't need general liabilty, it's good to have but not necessary, you need liability, uninsured motorist, physical, and CARGO, the rate will depend on your experience behind the wheel(or driver), what you haul, and the equipment you have. $600.00 a month sounds almost about right for everything I mention even though I only pay $401.00 a month, which includes everything I said and some extras. My premium is $4300 a year with an A+ carrier.

 

He should be paying all the cargo insurance since you're leased onto his company. That's typically how it works when you lease on somewhere. The rest of it is all on you.

 

First, at that rate you will be paying all the insurance costs. At 8% there is no money for insurance out of carriers end. You will not see a carrier paying cargo until you get to 85% or lower leases.

When you start to put the numbers together you are going to find that 8% plus your portion of insurance is very fair. You will have a though time covering overhead with two trucks. And when you look at what you are paying running under another authority at 8%.

It is hard to say if $600 is high without understanding the type of operation/drivers you are looking at with this company. But $7200/year for just Liability/Cargo is on the high side. But if you have hazmat or take drivers with DUI's or accidents then you are in ball park.

One other factor to consider when looking at moving away from leasing on to your own authority. It is likely that you will take a decent hit to your revenue per mile. If your friend has been doing this a while he will have accounts and contracts that get him better paying loads. So account for that when putting your business plan together.

Side note - the fact that you don't have some of this already nailed down and you have a truck and driver on is scary. You need to be staying up nights reading this board, asking questions (after you have read) and sucking up all the insults that will be hurled at you. A year from now you will understand why the insults and be in a position to succeed because of knowledge and not on the luck you are going to need now.

 

A cost factor is what it cost to run your business, fuel, oil changes, insurance,etc,... ALL your expenses. And a reserve for a breakdowns. If you can't do the math, your in trouble from the get go. Im not going to break it down for. to much to write, maybe another member will, not to mention, there are THREADS in here that DO mention the breakdown's on the cost factor. Do your research in here. Goodluck to ya.

 

Dave, that is d amn cheap. And out of CA.

But being leased he will not be able to get the auto liability and cargo. That goes under the carrier.

He likely has to get physical damage for tractor and trailer and bob tail.

Physical damage is something that you will want to have on your own, like plates. If and when you leave you can take it with you.

 

RW, have you read what he is asking? He doesn't even have a CPM. Can you imagine trying to run under his own authority.

 

My own insurance (broker) agent can't believe the rates I get either. They use Northland.