QuestionQUESTION: I have done quite a bit of research here and elsewhere on being legal hotshotting.
I'll pay about $200 a month for non trucking liabilty ins. leasing on to another co.
It seems that the general consensus is that it is 6-12k per year on your own.
But, if you haul for yourself and not for hire you do not need the BIG dollar insurance.
Is there a way to haul for yourself, so to speak, and not have to pay the for hire ins. or if you haul for yourself (another business) in your business a certain percentage can you haul for hire and be properly insured?
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ANSWER: Mark, don't confuse liability with insurance. As a carrier your liability will only be limited by the terms of your contracts. The insurance you buy is to protect you from the liability that you are exposed to. Most of the businesses that you will haul for will require that you carry some minimum level of liability insurance naming them as a certificate holder. If you only haul for yourself than you can decide how much exposure you are willing take without insurance. If you haul for others they will dictate the requirements. If they don't then you would only be required to carry the minimums specified by FMCSA or state regulations depending on your operations.
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QUESTION: So. If I haul $2000 worth of hay for hire and I am not insured " for the load". I am not illegal i am just taking the risk of $2000 or the cargo on board. Correct?
AnswerMark, if you are operating entirely within a state you just need to check your states requirements regarding licensing and insurance.
http://www.fmcsa.dot.gov/registration-licensing/licensing/overview.htm
If you are crossing state lines you will be governed by the FMCSA:
http://www.fmcsa.dot.gov/registration-licensing/licensing/registr.htm
Regardless of the regulatory requirement you will be responsible for the full value of the load unless you contract with the shipper for a reduced liability. Hope this helps. Jim
Hope this helps.
