What’s an Owner Operator?
It’s pretty simple—an Owner Operator is someone who owns and drives their own truck for hire. Instead of getting their own Motor Carrier authority, they lease on to a Motor Carrier and haul freight exclusively under that carrier’s DOT number.
A great example is FedEx Custom Critical. If you’re a Driver Pro with your own truck and want to haul freight for hire, FedEx offers a steady stream of daily freight.
Just to be clear, leased on Owner Operators working with FedEx CC aren’t employees—they’re 1099 Independent Contractors.
How does the Insurance work when you’re an Owner Operator?
When you’re an Owner Operator, think of yourself as a small business owner.
That means you’re responsible for showing some proof of your own insurance.
It’s kind of like a subcontractor working for a general contractor.
The Motor Carrier you lease on to is like a general contractor—they insure the overall job you’re doing for them.
But like any general contractor, they need to see that their sub-contractor covers their own:
- Tools
- Equipment (Truck)
- Personal Liability
- Medical Insurance
So your Motor Carrier will insure your Liability while you are operating on their behalf or for their benefit.
You still need to cover your own equipment (truck), non-business liability and medical insurance.
What kind of insurance does an Owner Operator need?
Most Motor Carriers, like FedEx, require leased-on Owner-Operators to have $1,000,000 in Non-Trucking Liability (NTL) coverage.
You’ll also need Physical Damage insurance—Comprehensive and Collision—to protect your truck.
Since you’re not technically an employee, Motor Carriers don’t provide medical insurance for leased-on Owner-Operators. So, you’ll need to figure out how to handle your own health insurance coverage.
Many Motor Carriers will ask you to carry Occupational Accident or Work Accident insurance for proof of coverage for any job-related injuries.
Finally, while it’s not required, you should consider Truck Roadside Assistance and Downtime Coverage as well.
What does Non-Trucking Liability (NTL) actually cover?
Wow, there’s so much confusion about Non-Trucking Liability!
NTL isn’t the same as “off dispatch” or “unladen” coverage—those are totally different things.
Non-Trucking Liability is low priced because it’s designed to cover you when you’re close to your own home on personal activities.
For example, these activities fall under your Motor Carrier’s policy–NOT your NTL:
- Driving to and from the terminal or where you park your truck
- Stopping to fuel up or give your truck a wash
- Heading to servicing or maintenance appointments
- Driving during layovers or when you’re deadheading
NTL also does not cover you if you’re moonlighting or making a few extra bucks on the side:)
Want the specifics? Check out this blog: Non-Trucking Liability–The Most Misunderstood Insurance Coverage.
Or watch this quick cartoon to keep it simple: What is Non-Trucking Liability for Owner Operators.
What does Physical Damage Cover?
Think of the physical damage insurance for your commercial truck like your personal car insurance—it works pretty much the same way.
Phys Dam includes two parts—Comprehensive and Collision.
- Collision covers your truck for damage from accidents, like if your truck hits something or rolls over.
- Comprehensive takes insures your truck for other things like fire, theft, floods, vandalism, windstorms or animal hit.
The main difference? You’ll likely insure your truck for its stated amount instead of its actual cash value.
That means it’s on you to keep track of your truck’s worth and how much any permanently attached equipment bumps up its value.
Need help figuring it out? A transportation insurance expert at CIS is just a call away—she’ll talk truck with you all day long!
CIS (330) 864-1511
What does Occupational Accident Insurance Cover?
Simply put, Occupational Accident Insurance is there to cover your just for work-related accidents.
FedEx Custom Critical refers to it as Work Accident Insurance and requires their Owner Operators to provide proof of $1,000,000 in coverage.
This type of policy helps with medical costs, death, and disability claims while you’re on the job.
Here’s what it can include:
- Medical expenses for accidental injuries
- Accidental dismemberment
- Paralysis from accidents
- Temporary total disability coverage
- Continuous total disability benefits
- Survivor benefits for accidental loss
- Accidental death coverage
Keep in mind that Occupational Accident Insurance isn’t a replacement for health insurance.
Think of it more like a supplemental plan, similar to dental or vision coverage.
It’s there to give you extra protection when you need it, and the motor carrier you’re leased to might require you to have it.
How Does Downtime Coverage Work?
Downtime insurance kicks in when your truck’s out of action due to a covered accident.
Without a truck you can’t earn money hauling freight, right?
Depending on your policy, Downtime Coverage is usually added to your NTL–Physical Damage policy.
Most insurance providers start with a quick search for a rental truck, but when it comes to expediting units it’s pretty rare to find one.
That’s where Downtime reimbursement comes in to save the day.
Take a look at how insurance companies deal with Downtime Coverage or Extended Repair Time—everyone does it different:
Progressive and GEICO charge $800 to $2,000 per year for their Downtime Coverage
- There’s no waiting period, and pays up to $750 per day with a maximum of $22,500.
- The cost difference depends on the daily payout option you pick.
Great American’s Downtime Coverage plan costs just $18 a month, but there is a 7-day waiting period
- Their plan pays up to $750 a week with a $5,000 max.
- Payout depends on your actual monthly average income.
The best deal, though? That’s apparently reserved for FedEx Custom Critical Owner Operators:)
Atlantic Specialty’s Extended Repair Time Coverage is automatically included in their NTL–Physical Damage package
- Atlantic Specialty’s Downtime Covers you UP TO $3,750 a month for up to 180 days.
- You will need years of acceptable loss runs and payout is dependent on your average income.
If you’re a FedEx Owner Operator, you can check out all the extra coverage perks here: Atlantic Specialty FedEx Custom Critical Insurance.
Just give us a call–CIS represents all these companies and we’re happy to point you in the right direction—we look out for you!
Why Choose CIS for Your Owner-Operator Truck Insurance?
Expediting motor carriers are always seeking skilled, motivated Owner-Operators to join their fleets—and CIS is here to get you started with the coverage you need.
We have the most affordable 4 essential coverages every leased-on owner-operator requires:
- Non-Trucking Liability
- Physical Damage
- Occupational Accident
- Downtime Coverage
Since 2002, CIS has been the go-to insurance agency for Expediting Owner-Operators nationwide.
We’re proud to be recognized as the #1 Owner Operator choice by Expediters Online, and it’s all thanks to our personal touch.
Whether we’re serving up hot fudge sundaes at driver appreciation events or sharing free advice at truck shows, we’re more than just an insurance agency—we’re part of your expediting community.
Our consistent 5-star reviews say it all–Owner Operators trust CIS and stick with us year after year because we go the extra mile.
Based in Ohio, we’re right in the thick of it, close to key Expediting Motor Carriers:
Panther Premium Logistics–ArcBest
Guys, we already know your Motor Carrier’s requirements–We do this all day long:)
You’ll get super affordable insurance, personal support, help with claims—and we’ll send proof straight to your recruiter in minutes!
At CIS, it’s not just about policies—it’s about people. We know your name, your story, and your goals.
We’ll help you grow from Owner Operator to Fleetowner.
That personal connection is what makes us different.
Give us a call anytime—we’d love to chat and help you get started!
CIS (330) 864-1511
We are CIS, and We Make Your Truck Insurance Easy!