Written By: Craig Barbee, CEO of Barbee Jackson Insurance. Craig has worked with several hotshot operations throughout the United States and published Blogs about how Hotshot Insurance works to protect these unique businesses.

Hotshots Keep Goods Moving Fast - Barbee Jackson Insurance makes Insurance Fast and Affordable

Texas invented the term Hotshot Insurance decades ago when equipment and goods needed to be moved fast. Since then the industry has exploded and the insurance industry was quick to provide hotshots for their own class of business.

What makes hotshot insurance different is the equipment used to haul goods and equipment. Many operations use duallies with goosenecks and others use standard pickup trucks with a ball tow. Because the vehicles used in the day-to-day operations are lighter duty than semi-trucks the insurance is typically cheaper and more flexible for different types of loads.

What is important is Texas insurance requirements for this type of business are loose and without a lot of guidance. 

• Texas Intrastate (not crossing state lines) over 26,000 lbs - $500,000 in auto liability
• Federal Interstate (crossing state lines) over 26,000 lbs - $750,000 in auto liability

Texas commercial vehicles are governed by TxDMV, but there is no clear insurance requirement for commercial vehicles under 26,000 lbs.

Your hauling contract or the load board will have the required limits of insurance plus cargo. This will usually be $1,000,000 in combined single limit (CSL) auto liability and $100,000 in cargo, but lower limits are available. Our policies are flexible, so we can meet your contact needs and requirements.

How much Does Hotshot Insurance Cost?

Texas is a large state and most of our drivers and business owners do not cross state lines, making them an intrastate hauler. Plus hotshots usually have a radius less than 500 miles. Both of these factors lead to lower premium with the addition of the smaller vehicle size then the traditional semi-truck.

A hotshot hauler in Texas can expect to pay $3,600 -$11,000  per year, per unit. The reason for the large spread is the liability limits and cargo amount. Our agents will work with you to determine what your contract says that you must carry and then find you the best price.

Coverage Options

Physical Damage - Physical damage will be at the stated value of the truck or agreed value. Physical damage is an optional coverage unless the truck is financed. You can also insure the trailer and any other permanently attached equipment.
Auto Liability - Auto liability is mandatory, but there is no clear amount of coverage that is required unless your gross vehicle weight rating is over 26,000 lbs.
Cargo - Cargo insurance is also not required, but necessary on certain hauling contracts. We can insure cargo for as low as $10,000.
Medical Payments - Medical payments for an injury accident that can be at-fault or not at-fault.
General Liability - More commonly used for household movers, but is a separate policy for accidents occurring outside the operation of the truck.
Trailer Interchange - Rarely used in hotshot operations, but provides coverage for non-owned trailers.
Workers Compensation - For employees injured on the job.
Umbrella Policy - Up to $5 million for contracts that require more than $1 million in auto liability
All of our policies can include Additional Insured and Waiver of Subrogation.

Want to learn more about Hotshot Insurance? Check out our Blog - Hotshot Insurance

Frequently Asked Questions

Can the policy be financed?
Yes, most policies will require 10% to 17% down and 10 equal payments. 

We do oilfield work, so our cargo varies from load to load. How is this properly insured in the event of a cargo claim?
We work with a lot of hotshots that haul for the oilfields. One day you’re hauling pipe, then next afternoon you’re hauling equipment. Our policies are flexible to handle all types of cargo loads and limits. Our agents and support staff will adapt your cargo insurance to the type of cargo hauled.

Do you insure hotshots that haul vehicles?
Yes, the classification would be car hauler and they typically require cargo insurance in the amount of $250,000 for a 3 - 5 vehicle hauler. I recently bought a truck in Texas and had it hauled to the Florida panhandle. In talking to the driver he was hauling vehicles this week and next week back to hauling pipes for the oilfields. His policy would have to be changed according to cargo hauled or we can check off multiple different types of cargo hauled on the policy - either or the policy would not have to be rewritten, just an endorsement change.

Do you do Driver Checks?
Yes, all our clients get free driver checks that include a MVR report and any reported accident. We will also inform you of any premium change over the phone.

How fast can I get a Certificate of Insurance?
During normal business hours we issue all COI within 5 minutes. We are located in CST and open at 7am to make sure that our clients get the COI they need to operate. Also, agents and support staff are monitoring email for requests outside the business house, so they can issue your certificate to keep your business moving.

Your Success is our Goal. Call us today to get started (850) 389-2001 or fill out the request form below and one of our agents will call you. (Spanish speaking associates are available)