Hot shot companies acting as common carriers are subject to the insurance requirements of the Motor Carrier Act of 1980 and must obtain bodily injury and property damage liability insurance for damages to others caused by their activities. Coverage must apply whether they operate independently or as carriers for hire.
The policies must contain an endorsement that indicates the policy satisfies the financial responsibility requirements of the state in which they operate or, in the case of interstate carriers, the minimum financial responsibility requirements established by the Department of Transportation. Coverage must apply whether they are operating their own equipment or the equipment of others.
There may also be special insurance requirements that apply to carriers hauling loads of hazardous materials or loads that pose special risks. Companies that cannot obtain standard insurance policies through traditional means may satisfy their insurance requirements by posting bonds that demonstrate they are able to meet the minimum financial responsibility requirements set forth by the Department of Transportation.