Our last Becoming an Owner Operator post discussed the different trucking insurance coverages an owner operator needs. These differ depending on whether s/he decides to lease onto a motor carrier or operate under his or her own authority. This post is for those who have leased onto a motor carrier and are exploring their insurance options. It will discuss a master insurance policy.
Master Insurance Policy
As mentioned in last month’s post, if you decide to lease onto a motor carrier, then your trucking insurance needs will be determined by your lease agreement. The motor carrier will, more often than not, provide you with Primary Liability. Then, you are left to purchase Bobtail/Non-Trucking Liability Insurance, Physical Damage Coverage, Motor Truck Cargo Insurance, and Lease Gap Coverage.
Your motor carrier may indirectly offer the remaining coverages; however, you have a better chance of getting a lower rate by purchasing them yourself. One option would be to purchase insurance under a master insurance policy.
The advantage of purchasing insurance under a master policy is a lower insurance premium. Since the policy covers an entire group of insureds, the group has greater purchasing power.
With all advantages, there are disadvantage. When it comes to a master policy, the disadvantage is a higher chance of a rate increase at renewal. The accidents and claims of all insureds under a master policy effect the insurance rate. Therefore, if there are a lot of claims in one year, odds are your insurance rate will increase the following year.
Independent Contractors Opportunity Network (ICON)
ICON is a department that Truck Writers has dedicated solely to owner operators. Our ICON agents and support staff specialize in helping those seeking insurance get the appropriate coverages at an affordable rate.
If you’re interested in learning more about becoming an owner operator or have any trucking insurance questions, please call Truck Writers today!