Line Haul Contractors
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Line Haul Contractors

Line Haul Contractors Insurance 

There is a lot of discussion about being a DSP provider for Amazon, FedEx, and other carriers. However, there is another lucrative area of contracted trucking work: line haul contractors.

Like DSP providers, linehaul contractors provide delivery services for the major couriers, typically FedEx. They also have detailed contracts with those providers, which require them to have specific types of insurance, such as trucking workers’ comp.

Comparing and Contrasting Linehaul and P&D

Linehaul is different than pickup and delivery (P&D). P&D drivers are responsible for delivering items directly to consumers. The delivery times are during the day, and they have some, though limited, customer interactions. They are also driving at high-traffic times.

Linehaul can operate 24/7. This means that Linehaul drivers can avoid some of the high-traffic concerns of P&D carriers. However, the runs are long-distance. They can be along fixed routes, or at least with designated end destinations at the beginning of each run, or they can open-ended.

To operate a Linehaul business, you must have semi-trucks in your fleet. P&D only services can operate with a fleet of box trucks.

Types of Linehaul Runs

There are three basic types of linehaul runs: dedicated, unassigned, and spot.

  • Dedicated runs are on an established route. They have the same starting and stopping destination for each trip.
  • Unassigned runs begin at a defined starting location, but their destinations are unknown. The drivers are expected to go to various destinations on an as-needed basis. This means that the duration of the trip is often unknown at the beginning of the trip, as well. These runs can be difficult to staff but are lucrative for businesses.
  • Spot runs are similar to P&D runs. The routes are short haul, with small coverage areas. They operate out of a home base, which means they are home each night. The difference between spot runs and P&D runs is that the drivers are operating semi-trucks and generally delivering larger packages or larger quantities of packages.

Insurance Needs for Linehaul Companies

The exact insurance needs of your linehaul company will depend on the following factors:

  • How big is your operation?
  • How many trucks do you run?
  • What is your range?
  • What is your average mileage?
  • What type of runs do you handle?
  • How many employees do you have?

While each of these factors can influence your insurance needs, you may need the following types of insurance:

Capstone Coverage is a full-service insurance agency that can help you find complete coverage for your Line Haul contracting. Contact us today at (888) 300-3995 for an assessment of your insurance needs and to begin the quote process.

 

 

 

 

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