Motor Carrier Reimbursement

Why Owner Operators Need Motor Carrier Reimbursement Coverage

As an owner operator, anytime you contract to take on a load, there is always an associated risk of having an accident while it is in your possession. When you work under contract or lease, you are legally responsible for the equipment and cargo you are hauling.

If you have an accident while you’re delivering a trailer, damaging the cargo or the trailer, the motor carrier’s Physical Damage and Cargo Insurance will pay for the losses. Unfortunately, most motor carrier lease agreements stipulate that an owner operator is responsible for paying the deductible for the claim. Depending on the motor carrier’s policy, that can leave you on the hook to pay thousands of dollars out of pocket to meet the deductible.

That’s where Great West’s Motor Carrier Reimbursement coverage can help. It is created for owner operators to reimburse you for any accident-related expenses for which you are contractually obligated to pay the motor carrier, like deductibles.

Great West’s Motor Carrier Reimbursement Insurance

Great West offers Motor Carrier Reimbursement coverage as an option you can add to your owner operator Physical Damage policy. It is an endorsement—or amendment—that modifies your Physical Damage policy to include liability coverage for your lease obligations.

To purchase coverage, the deductible requirement must be part of your motor carrier’s written lease agreement.

Coverage Applies To:

Tractor Property Damage Liability
Physical damage to the motor carrier’s trailer
Cargo damage

How does motor carrier reimbursement work?

Your policy’s premium is simply based on the amount of coverage you need.

The premium costs $10 per $100 of coverage.

You have the option of choosing up to three types of coverage to help pay for a loss that exceeds $1,000.

You are responsible for paying the first $100 of a covered claim. Other retention amounts are also available. The retained amount is the deductible per loss, not per type of coverage, that you choose to “retain” to pay before your policy responds.

Here’s an example of how it works:

Your motor carrier’s contract states that you are responsible for deductibles on Physical Damage and Cargo losses. The motor carrier’s policies have deductibles of $1,000 each, or $2,000 total.

To cover the deductibles, you choose to add a Motor Carrier Reimbursement endorsement with two coverages to your owner-operator Physical Damage policy. You add:

Physical Damage coverage for $1,000, and
Cargo coverage for $1,000.
When you have an accident, your policy reimburses you up to $2,000 to pay the deductibles.

Insurance Contracts are Underwritten, Administered, and Issued by: Great West Casualty Company, Old Republic Life Insurance Company, and Old Republic Union Insurance Company.

One or more Old Republic companies may provide the products and/or services described. Information presented is for illustrative purposes only and does not constitute a contract or advice, including employment advice or advice to motor carriers. Please refer to the relevant insurance policy for actual terms. Products and services may not be available in all states and may be subject to change without notice. © 2026 Old Republic International Corporation. Old Republic® and the Old Republic Circle of Stars monogram are registered trademarks. All Rights Reserved.

PHYSICAL DAMAGE
Motor Carrier Reimbursement