TL;DR: Owner-operator insurance splits on one question: whose authority do you run under? Leased on, the carrier covers dispatched liability and you buy physical damage, bobtail, and usually occupational accident. Own authority, you buy the full stack with federal filings. These answers cover both modes and the switches between them.
What decides an owner-operator's insurance needs?
Authority. Leased onto a motor carrier, 49 CFR 376.12 puts dispatched liability on the carrier and leaves you the truck, personal use, and your body to insure. Running your own MC number, every coverage and filing is yours. Most questions below start from one mode or the other, so know which one you are in, and which one next year's plan puts you in.
What belongs in every owner-operator's file?
Your lease's insurance clause, your certificates, your physical damage valuation, and your occupational accident policy's benefit caps. Those four documents answer most disputes before they start.
Real questions owner-operators ask
What insurance do I need the day I lease onto a carrier?
Typically three pieces: physical damage on your tractor, non-trucking liability for off-dispatch use, and occupational accident coverage if the lease requires it. The carrier provides primary liability for dispatched operations under 49 CFR 376.12(j), and the lease must state every charge-back amount.
Is bobtail insurance the same as non-trucking liability?
No. Bobtail covers driving without a trailer, even on business; non-trucking liability covers personal use off dispatch, trailer or not. Claims turn on the trigger, not the nickname. Deadheading between dispatched loads generally belongs to the carrier's policy, not either of these.
Does the carrier's insurance cover my truck?
No. The carrier's liability policy covers what your operation does to others while dispatched. Damage to your own tractor is your physical damage coverage, at a value you declare. Lenders and most leases require it, and the payout is capped by that declared value.
What is occupational accident coverage and do I need it?
It is a private substitute for workers comp that many leases require: medical, disability, and death benefits for work injuries, capped at the policy's stated limits. Whether workers comp could or must cover you instead is state law. Read the caps before relying on it; they are the coverage.
Can the carrier charge me whatever it wants for insurance?
No. Under 49 CFR 376.12(j), the lease must state the exact charge-back for any coverage bought through the carrier, and you are entitled to a certificate showing insurer, coverage amounts, your cost, and deductible. Compare those numbers against standalone quotes annually.
What does going from leased-on to my own authority change?
Everything. You buy primary liability at your commodity's federal tier, filed with FMCSA as a BMC-91 or BMC-91X, carry the MCS-90, add cargo coverage brokers require, and keep physical damage. Insurance cost jumps accordingly, and new-authority pricing applies until you build history.
How much liability do I need with my own authority?
The federal floor is $750,000 for general freight under 49 CFR 387.9, but standard broker agreements require $1,000,000, so that is the practical minimum. Hazmat tiers run $1,000,000 to $5,000,000 by commodity. Buy for the freight you want, not the legal minimum.
Do I need cargo insurance as a new authority?
Yes in practice. FMCSA has not required cargo filings for general freight since March 21, 2011, but virtually every broker requires $100,000 cargo coverage on your certificate before tendering. Without it your authority is active and your calendar is empty.
Can I run loads under my own authority while still leased on?
Only with both sides properly insured, and many leases prohibit it. Loads under your authority need your own filed liability and cargo; the carrier's coverage stops at its own operations. Mixed running without complete coverage is how owner-operators end up personally exposed.
Does my personal auto policy cover anything on the truck?
No. Personal auto policies exclude commercial vehicles of this class. The tractor needs commercial coverage in every mode: the carrier's liability plus your physical damage and bobtail when leased on, or your full commercial program under your own authority.
What happens to my coverage when I switch carriers?
Carrier-provided coverage, and anything bought through the old carrier's program, typically ends with the lease. Independent policies, physical damage, non-trucking liability, occupational accident, follow you. Time the switch so certificates and any new lease requirements line up with no gap days.
Is my deadhead mile covered, and by whom?
Deadheading in the carrier's business, to a pickup or back from a delivery, generally belongs to the carrier's primary liability. Disputes happen at the edges, which is how the lease defines dispatch. Get that definition in writing and match your non-trucking policy to it.
What should I check before signing any lease?
The insurance clause against 49 CFR 376.12(j): carrier's liability obligation stated, every other coverage assigned by name including bobtail, exact charge-backs listed, and the cargo deduction conditions spelled out with your right to itemized explanations. Vague clauses cost real settlement money later.
Do I need workers comp for myself as an owner-operator?
Usually not required for a true independent contractor, but state tests decide classification, and some states allow election into coverage. Many leases require occupational accident instead. Check your state's rules and price both options; the benefit structures differ substantially.
How should I set the stated value on my tractor?
At honest current market value, checked against used truck pricing each renewal. Most physical damage forms pay the lesser of stated value and actual cash value, so inflating the number buys premium without buying payout, and understating it shorts you at a total loss.
What is gap coverage and do I need it on a financed truck?
Gap coverage pays the difference when you owe more on the truck loan than the truck's value at a total loss, a common position early in a note or after heavy depreciation. If your loan balance exceeds realistic market value, price the endorsement; without it, you keep paying for a truck that no longer exists.
Who insures the trailer I pull as an owner-operator?
Depends on ownership and paperwork. Your own trailer goes on your physical damage schedule. A carrier's trailer under lease is usually the carrier's to insure, but check the lease. A broker-supplied trailer under a power-only agreement typically requires you to carry trailer interchange coverage.
Why truckers work with Morrow
- We know the filings. Morrow writes owner-operator packages for both modes and re-papers the coverage the week you switch between them.
- New authority is our normal. First-year carriers pay the most and get declined the most. We work with markets that actually want new ventures and we tell you what the first renewal takes.
- Certificates and filings, fast. Certificates of insurance the same business day for most carriers, and federal or state filings submitted electronically so your authority is not sitting in a queue.
- We quote the whole picture. Liability, cargo, physical damage, and the endorsements shippers and brokers actually check for, priced together so nothing is missing when a load is on the line.
- Real people when something goes wrong. A claim, a lapse notice, or a lost certificate gets a person, not a portal.
Related trucking guides
Short answers to the surrounding questions truckers ask next.
- Trucking insurance at Morrow (start here)
- Leased on to a motor carrier: who insures what
- Owner-operator vs company driver coverage
- Non-trucking liability (bobtail) coverage
- Physical damage coverage for trucks
- Insurance you need to get an MC number
- Workers comp for trucking companies
- Commercial auto for trucking fleets
This guide is general information, not legal, tax, or insurance advice. Limits, forms, and deadlines change, so verify current requirements with FMCSA and your state insurance department before you rely on them. Morrow is a brand name of Afthonea Inc. Last updated: July 2026.