The Insurance breakdown goes something like this:
1. Cargo Insurance - Most carriers cover the cost
2. Physical Damage Insurance - Typically required by the company that is the lienholder on a truck, it protects their interests. This is at the expense of the contractor. However, companies can offer a group rate on this type policy for trucks that are leased on in their fleet.
The rate for this policy id based upon the replacement value of the insured vehicle.
3. Non-trucking Liability (AKA Deadhead/Bobtail) Insurance. Contractors are most generally required to carry a 1 million dollars per incident non-contingent liability policy. This is at the xpense of the contractor, but can often be purchased at a discounted flat rate along with your physical damage coverage.
These are the general types of insurance involved in what we do, I hope this helps.
- Scott