Commercial Trucking Insurance: Do Owner-operators Need Different Coverage Than Fleet Owners?

Understanding the right insurance for your trucking business is essential—whether you’re an independent owner-operator or managing a fleet of vehicles. At Allee Agency Inc, we help Tennessee truckers and trucking companies navigate the unique insurance requirements that come with different business models.

Key Differences in Insurance Needs

Owner-operators

As an owner-operator, you typically own and operate a single truck, sometimes leasing your services to larger carriers or working under your own authority. Your insurance needs may include:

• Commercial auto liability coverage—Required by law, this covers damages or injuries you may cause to others while operating your truck
• Physical damage coverage—Financially protects your truck from accidents, theft or weather-related damage
• Nontrucking liability coverage—Can provide coverage when you’re using your truck for nonbusiness purposes
• Bobtail liability coverage—Covers trucks while being driven under dispatch, but without a trailer
• Cargo insurance—Covers the goods you transport, which may be required by shippers or brokers

Fleet owners

Fleet owners manage multiple trucks and drivers, often with more complex operations. Their insurance needs can be broader, often including the following additional coverages:

• Fleet liability coverage—As a multivehicle variant of commercial auto insurance, this can cover all vehicles and drivers under one policy, simplifying management.
• Hired and non-owned auto coverage—This can financially protect against liability when employees use vehicles not owned by the company.
• Workers’ compensation insurance—These policies are typically required by law if you employ drivers, covering injuries on the job.
• General liability insurance—This type of insurance can assist in situations where your business is responsible for other parties’ losses in nonvehicle-related incidents, such as if a customer is injured while visiting your garage or offices.

State-specific Considerations

Tennessee has specific requirements for commercial trucking insurance, including minimum liability limits. Both owner-operators and fleet owners must make sure their policies meet state and federal regulations or face fines and other potentially costly consequences.

How Our Team Can Help

Our team understands the challenges faced by Tennessee truckers and fleet managers. We work closely with owner-operators and fleet owners to identify essential coverages, compare options and confirm compliance with all regulations.

Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.