Insurance
Hotshot insurance: cost and the limits brokers want
Updated
Eight hotshot owners on trucking forums gave a yearly or monthly premium. On a yearly basis, they run from $4,200 to $32,400, and the middle half paid $14,400 to $21,600. The federal floor is $750,000 in liability at 10,001 lb GVWR or more, and 20 of the 21 brokers that publish a liability minimum on their own pages ask for $1 million or more.
At a glance
- Owner reports with a figure
- 8
- Yearly range
- $4,200 to $32,400
- Middle half
- $14,400 to $21,600 a year
- Federal liability minimum
- $750,000 at 10,001 lb GVWR or more
- Brokers asking $1 million liability
- 20 of the 21 that publish a minimum
- Brokers asking $100,000 cargo
- 21 of the 22 that publish a minimum
What hotshot owners report paying
Eight hotshot owners on trucking forums gave a yearly or monthly figure. With monthly payments counted times 12, they run from $4,200 to $32,400 a year, and the middle half paid $14,400 to $21,600. Each line below is one owner's report, with the limits they gave.
| Owner report | Amount | Limits and coverage they stated |
|---|---|---|
| Florida | About $1,200 a month | $1 million auto, $1 million general liability, $100,000 cargo |
| Florida | $2,700 a month | $1 million liability, $150,000 cargo |
| Posted as a typical hotshot setup | $8,600 a year | $1 million liability, $250,000 cargo |
| 2 years' driving experience | $15,375 a year | $100,000 and $1 million, coverage types not labeled |
| Payment plan | $3,500 down, then about $1,800 a month | The owner thought $1 million general liability and $100,000 cargo |
| Payment plan | $3,491.60 down, then $1,397.64 a month | Physical damage included. Liability posted as $50,000 and $50,000. The cargo limit as posted was unclear |
| Quote | $25,000 for the year | |
| Truck and a new trailer | $4,200 a year | Full coverage on both |
The two Florida owners show how far similar policies can land apart. Both carried $1 million in liability:
- One paid about $1,200 a month with $1 million in general liability and $100,000 in cargo.
- The other paid $2,700 a month with $150,000 in cargo.
Quotes on the same new business spread wider still. These two sit outside the eight-report count, because neither gives a full yearly or monthly figure:
- An insurance agent listed three quotes on one new hotshot venture: $10,000, $31,000 and $54,000. The post didn't say what period they covered.
- Another owner was quoted $24,000 for six months.
Match your hotshot coverage to broker minimums. Start with your DOT or MC number. The load-ready check shows which brokers and load programs will set you up today, which open up later and the coverage that unlocks the rest. Load-ready check
The federal minimum for a hotshot
For interstate for-hire general freight, FMCSA's minimum is $750,000 in public liability at 10,001 lb GVWR or more. If every vehicle under your authority is rated under 10,001 lb GVWR, the floor is $300,000. Both are liability floors with no cargo limit in them, and hazardous cargo has its own schedule of limits.
The CDL question is separate. A pickup and trailer need a Class A once the combination reaches 26,001 lb with a trailer over 10,000 lb, and the 3500 badge on the truck doesn't change that. The hotshot startup guide walks through the weights.
Your insurer files proof of your liability coverage with FMCSA, and your authority won't be granted until that filing is in effect. Cargo for general freight carries no FMCSA filing minimum.
What brokers ask hotshots for
Brokers set their own bar, and most set it at $1 million, the figure 20 of the 21 brokers publishing a liability minimum ask for or exceed. Cargo minimums line up the same way, with 21 of the 22 that publish one asking for $100,000 or more.
Circle Logistics names hotshots in its 2018 carrier packet, which is still posted on its site. Its terms:
- $1 million in auto liability and $100,000 in cargo per occurrence.
- A cargo policy that names Circle as a named insured and can't carry exclusions or restrictions that would block a claim.
- A Conditional or Unsatisfactory safety rating disqualifies you.
Load boards pass the broker's rules along. DAT, Truckstop, 123Loadboard and Direct Freight all list hotshot equipment.
- On DAT, each broker sets its own coverage requirements.
- 123Loadboard's booking guidance says brokers usually ask for $100,000 in cargo and $1 million in liability.
The cargo limits in the owner reports above run from $100,000 to $250,000. If your freight is worth more than your cargo limit, ask the broker what it requires before you book. The cargo insurance page covers what brokers check on the certificate.
How to get quotes you can compare
- Quote at broker limits. Ask every agent for $1 million in liability and $100,000 in cargo, so the prices line up.
- Give every agent the same facts. Use the same truck, trailer, freight and radius on each request. Don't understate cargo, radius or equipment to bring a quote down.
- Check deductibles and exclusions. Read both on every quote.
- Ask for the full payment plan. Get the down payment, the monthly payment and the number of payments. Two hotshot owners above put $3,491.60 and $3,500 down.
The quote comparison guide has a sheet for every line, and the cost page shows what owners of other equipment report.
Keep your filing active
When an insurer cancels, it files a BMC-35 with FMCSA. In most cases the cancellation lands 30 days after FMCSA gets that notice, and the filings page covers the replacement-filing exception.
Those 30 days are notice, and they don't let you haul without coverage. Bind your renewal early and check that the new filing posted.
For the loads side, see hotshot loads.
Put your quote into a full budget. Pick the hotshot in the startup cost estimator and add your insurance quote and down payment. It builds a first-year budget and a cost per mile. Startup cost estimator
Frequently asked questions
How much is hotshot insurance?
Eight hotshot owners on trucking forums reported $4,200 to $32,400 a year, with monthly payments counted times 12. The middle half paid $14,400 to $21,600.
What insurance do brokers want for hotshot loads?
Most brokers that publish minimums ask for $1 million in liability and $100,000 in cargo. Of the 21 that publish a liability minimum on their own pages, 20 ask for $1 million or more.
Is the federal insurance minimum for a hotshot $750,000?
Yes, for interstate for-hire general freight at 10,001 lb GVWR or more. If every vehicle under your authority is rated under 10,001 lb GVWR, the floor is $300,000.
How much do hotshot owners put down on insurance?
Two hotshot owners on payment plans reported $3,491.60 and $3,500 down.