Starting a Hot Shot Trucking Business: Explained
Today’s video discusses those of you considering starting a hot shot trucking business. I walk you through the legal steps and what is required to receive your authority.
There is a 21 day vetting process and your authority will not be granted without public liability insurance federal filings and your BOC-3 forms. I’ll help you gather insurance quotes for your business, when you select your payment plan and carrier.
A deposit will be required and once they have approved everything, it will take 24-48 hours to submit your filings to FMCSA to have your authority granted.
The Public Insurance requirement for general freight haulers is $750,000 which provides coverage for bodily injury, property damages, and environmental restorations.
You have up to 90 days from filing for your DOT authority before you would need to start the process over if your unable to secure insurance. If you do not have your CDL, your going to be limited in the type of loads you can go after.
The maximum hauling weight for non-CDL hot shot truckers will be 10,001 lbs. Let’s assume your trailer weights 5,000 lbs; that only leaves 5000 lbs of commodities for hauling. I definitely recommend working towards your CDL to maximize your profits.
As always, you can count on the commercial truck insurance professionals at The Daniel & Henry Company to assist you through challenging claims and all of our insurance, risk management, and safety issues. Contact us today to discuss solutions for your transportation risk management program.