Bobtail Insurance

Would bobtail insurance on a 1 ton be the same as the vehicle insurance you would have if you weren't running hot shots with your truck? If not what all does that cover & what does the average policy cost?

 

I thought that million dollar coverage is usually for the freight? For me that would be covered by the trucking company. I would only be responsible for bobtail insurance, which I assume would cover my truck & trailer when dead heading home or to another customer.

 

Below are a couple questions I asked a hotshot trucking company that I am considering leasing on to. I either have a lot more to learn about this side of the business, or some of his practices are a little shady, or both. Please look this over & give me your feedback. Top two are my questions & bottom two are his responses.

1. The $3,000 weekly average you are talking about is after your percentage & after my operating costs? And Op. Costs for the average 1 ton & 40’ gooseneck is roughly .80-85cpm?
   
2. What are all of the services you provide under your percentage? Loads & dispatching of course, your DOT #,　 MC#, your authority, your IFTA? Never had to deal with this part of the business so I have lots of questions. Trying to crunch the numbers & see what I am responsible for. I would need to purchase my own insurance correct? 1 million in coverage?

1.　　 You should take home 3-4 thousand every week after my 20%, Insurance and fuel are deducted from your pay. You must carry a bobtail policy and I must carry the freight insurance. I deduct all costs from your payroll, making you a true 1099 sub-contractor.


2.　　You must provide a 40’ trailer that we can put a minimum of 15K on. It is your responsibility to purchase tags, IFTA and all load securement. A class A CDL with clean record is required as well.

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Thanks kemosabi. That's kind of what I thought, but what does that cover? The truck & trailer? or is that a whole separate policy?