Understanding Insurance Coverage for Owner Operator Truck Drivers

Many entrepreneurs want to make the transition from a company-employed truck driver to the owner operator. Moving into a self-employed role often requires training and a significant financial investment. Obtaining adequate insurance coverage is also essential. These are some of the most important aspects of owner operator truck insurance policies.

Coverage for Property

Some elements of an insurance policy are designed to cover damage to the truck or to another person’s property:

General liability coverage
Motor truck cargo coverage
Physical damage coverage

General liability coverage usually relates to property damage that occurs during an accident. For example, if a driver accidentally damages a loading dock during delivery, the general liability part of the insurance policy may help cover the damages. Motor truck cargo coverage generally covers losses from issues such as theft or environmental damage. An owner-operator may also have physical damage coverage for the cost of repairs or replacements if the truck is stolen or damaged.

Coverage for People

Other types of owner-operator truck insurance provide coverage for physical injuries to people: 

Primary liability coverage

Uninsured motorist coverage

Primary liability coverage is usually for situations where the truck driver accidentally injures someone while on the job. Uninsured motorist coverage can offset additional repair or medical costs that occur when there is an accident and the other driver has no insurance.
Complete insurance coverage is required for owner-operators. It is wise to design a policy that includes several types of coverage for costs related to property damage and physical injuries.