Insurance question for owner operators...

Depends

Now you have 52 more questions to figure it out

 

They can charge 10% of the revenue and you pay for everything, or they can charge 20-30% all inclusive. Depends...

 

Most of the time you will be responsible for dead head bobtail insurance and non trucking liability. The carrier carries the cargo, general and auto liability. That as previously stated will either be a percentage or a flat rate. I pay percentage of the load for the right to work and flat rate on insurance. Witch I prefer my carriers insurance is less than 2% of my weekly gross.

 

I just had to get non trucking and physical damage. $2400 for the year. Everything else is covered under the agreement with the company I am leasing on with. All depends on your agreement and contract. Lots of ways to do it. That is why it is so hard to compare one owner op company to another. You don't know until you talk to them and see the contract.

 

For the owner operators that work under me, my agreement pretty simple, you get 90% of linehaul, 100% of eveything else and you pay the actual cost of the auto liability and cargo, physical damage you can shop for our opt in for what I offer, but you're paying actual cost on it as well. I don't require non-trucking liability/bobtail yet because you're already covered under the auto liability policy. All non-trucking liability does is put the liability of an accident you caused during the rare instance you're not furthering my business on you instead of the auto liability policy of my company. The big catch with that, is how do you determine when you're not furthering my business? I only have 2 trucks right now so that might change when I add a couple more owner operators.

I also require that you have owner occupational insurance as well but you can shop that one if you want or opt in to what I offer.

 

When I was leased on to a small outfit, I paid everything there was to be paid as if you were an independent except cargo and liability that they provided. I had to have physical and non trucking liabilty and the cost was about 2.5 a year and they required me to buy the occupational insurance, which they provided for 200 a month.
i know some carriers will want you to chip in for their cargo and liability.

 

if they take 5% and you have to pay for their cargo/liability then it is not such a bad deal provided they are well established and have good paying loads. If they work off load boards only, you pay them for dispatching service basically, which is a little high.

 

From what I have seen with other small carriers, less than 100 trucks, 5% is dang near unheard of, not that many carriers offer 10% unless you have your own trailer and good chance you're paying all of the insurance costs as well, 15-20% seems to be the most common I see. With that, half the carriers in that range are asking you to pay some of the insurance cost along with other charges and at rate, all they are doing is providing you access to the load board and you'll most likely be paying for a trailer rental on top of that. At least that is what I have seen from my research and talking with quite a few other cmall carrires.

 

I carry my own bobtail and non trucking policy and twice a month I'll pay 600 out of my settlement check for the companies cargo liability