Getting the Right Insurance for your Trucking Business
Are you interested in moving intermodal freight and expanding your owner operator business? Download the free DrayNow app from the App Store or Google Play store, or click the button below.
When getting your owner operator business up and running, choosing the right insurance for your operation may become overwhelming with the amount of choices out on the market. We’re going what to look out for when choosing the right insurance and what the DrayNow app requires for signed up carriers.
As discussed previously, trucking carriers that are interested in using the DrayNow app to haul intermodal freight need to have liability coverage from a traditional insurance company rather than a risk retention group. This is to make sure that state guaranty funds can provide compensation for your claims if your insurance provider is unable to pay. Businesses covered by risk retention groups are unable to access these funds in case the risk retention group is unable to pay. When picking an insurance carrier, make sure to find out whether they are considered a risk retention group or not for this reason.
To use the DrayNow app, carriers need to have $1 million in general liability insurance and $100,000 in cargo insurance. The general liability insurance is for the protection of your business, while cargo insurance protects you in the event of anything happening to the freight in your possession. Having insurance policies this large can help ensure that there are fewer headaches later on in the event of an accident or any other damages that may become costly.
On top of those coverage requirements, a trucking carrier’s insurance company needs an AM Best Rating of A- or higher. If you’re not familiar with it, AM Best Ratings are used to measure the financial strength of the insurance provider. If they have a high rating, such as anything A- or above, then they will be more likely to have the ability to pay for your claims. Therefore, our requirement of an A- or better AM Best Rating is helping the carrier make sure that they have a good insurance provider.
When picking an insurance provider, it’s important to look at both the coverage options as well as the AM Best Rating so that you know if you will be qualified to pick up intermodal loads from apps like DrayNow. Having the right insurance for your operation can give you the peace of mind to haul freight and know that you are properly covered.
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