How to Start a Pilot Car Business: A Guide for New PEVO Operators

If you're considering starting a pilot car business, you probably have plenty of questions.

What certifications do you need? What kind of vehicle should you use? What equipment will you need? Can you work in multiple states? How do you find customers? And, eventually, what kind of insurance does a pilot car business need?

Starting a Pilot/Escort Vehicle Operator (PEVO) business involves more than putting a sign and warning lights on a vehicle. Pilot car operators can play an important role in helping oversize and overweight loads travel safely, and requirements can vary depending on where and how you operate.

Foundation Insurance & Risk Management works with new and established pilot car operators across the country. Because we regularly hear from people who are just entering the industry and aren't sure where to begin, we've put together this guide to highlight some of the issues you'll want to research as you build your new business.

This isn't intended to replace state-specific regulatory, legal, tax or business advice. Instead, consider it a starting point for creating your own PEVO business plan and identifying the questions you need to answer before accepting your first job.

1. Understand What a Pilot Car Operator Does

Pilot cars — also called escort vehicles — accompany certain oversize or overweight loads during transportation.

Depending on the load, route and applicable requirements, a pilot car may travel in front of or behind the load. In some situations, multiple escort vehicles may be required.

The responsibilities of a PEVO can extend beyond simply driving ahead of a truck. Depending on the assignment and jurisdiction, operators may be responsible for helping identify potential hazards, communicating with the load driver, alerting other motorists, monitoring clearances or performing other functions associated with safely moving an oversize load.

Before starting your own company, take time to understand both the responsibilities and potential liability that can come with this type of work.

2. Research Pilot Car Requirements Where You Plan to Work

One of the first things a prospective operator should understand is that there isn't necessarily one nationwide set of requirements that applies to every PEVO operation.

Requirements can vary by state and may depend on the type or dimensions of the load being escorted.

Depending on the jurisdiction, there may be requirements involving:

• PEVO training or certification

• Driver qualifications

• Vehicle specifications

• Warning lights

• Signs, flags and other safety equipment

• High-visibility apparel

• Communication equipment

• Height poles or clearance equipment

• Insurance or proof of financial responsibility

• When and how escort vehicles must be used

Don't assume that meeting the requirements in your home state automatically qualifies you to operate everywhere else.

If your business will cross state lines, research the current requirements of every state where you anticipate working. State transportation agencies and other applicable government authorities should be used to verify current requirements.

3. Consider PEVO Training and Certification

Training can be an important step for someone entering the pilot car industry.

Depending on where you operate, certification or specific training may be required. Even when a particular jurisdiction doesn't require the same certification, proper training can help a new operator better understand responsibilities, safety procedures, communications and the risks associated with escorting oversize loads.

Before enrolling in a program, determine whether the training or certification will be recognized in the states where you intend to work.

If you're planning a multi-state operation, this deserves particular attention because certification and reciprocity requirements can differ.

4. Establish Your Pilot Car Business

You'll also need to address the same basic business issues that come with starting many other small businesses.

Depending on your circumstances, that could include choosing a business structure, registering a business name, obtaining appropriate tax identification numbers, opening business banking accounts and establishing a method for tracking income and expenses.

You may also want to speak with qualified legal and tax professionals about the business structure that's appropriate for you.

Creating a formal business operation from the beginning can also make it easier to keep contracts, certificates of insurance, vehicle records, customer information and financial records organized as the business grows.

5. Choose an Appropriate Pilot/Escort Vehicle

Your vehicle is one of the most important pieces of equipment in a PEVO business.

Reliability matters. Pilot car operators can spend significant amounts of time on the road and may travel considerable distances to complete an assignment.

When evaluating a vehicle, think beyond the purchase price. Consider reliability, fuel economy, visibility, maintenance costs, cargo space for equipment and whether the vehicle can be properly configured for the type of work you expect to perform.

You should also verify applicable vehicle requirements in the states where you'll operate.

Before purchasing or modifying a vehicle specifically for PEVO work, make sure you understand those requirements.

6. Equip Your Vehicle for PEVO Work

Pilot car equipment requirements can vary considerably by jurisdiction and assignment.

Depending on applicable requirements and the services you provide, equipment may include items such as warning lights, OVERSIZE LOAD or similar signage, flags, reflective or high-visibility equipment, communication devices, safety equipment and height-measuring equipment.

Rather than relying on a generic online equipment list, verify the current requirements for the jurisdictions where you'll operate.

It's also a good idea to develop a routine for inspecting your equipment before accepting or beginning an assignment.

7. Decide Where You Will Operate

Are you planning to work primarily within your home state, throughout a particular region or nationwide?

That's an important business decision.

A wider operating territory can create additional opportunities, but it also means understanding requirements in multiple jurisdictions and potentially spending significantly more time traveling.

Your operating territory can also matter when you're arranging insurance for the business.

When speaking with an insurance professional, be upfront about where you expect to work. Don't describe the operation as local if you're planning to escort loads throughout several states.

8. Understand Insurance for a New Pilot Car Business

Insurance is another area that can be confusing for new PEVO operators.

A pilot car is being used for a commercial purpose, which creates considerations that may be very different from driving the same vehicle for personal use.

Depending on the business, coverage considerations may include commercial auto insurance, general liability insurance and other coverage appropriate to the operation.

Coverage requirements can also be influenced by the companies you work with. A motor carrier, heavy-haul company or other customer may require certain insurance coverage or liability limits before allowing you to perform work.

That's why it can be helpful to investigate insurance before your first job is waiting for you.

Foundation Insurance & Risk Management specializes in working with new PEVO businesses, including operators who aren't sure what insurance they need or how to get started.

If you're at that stage, visit our Pilot Car Insurance for New & Start-Up Businesses page to learn more about coverage considerations for a new operation.

9. Understand Certificates of Insurance

As you begin pursuing work, you may be asked for a Certificate of Insurance, commonly referred to as a COI.

A certificate provides evidence of certain insurance coverage in effect at the time it is issued. Companies may request a COI before allowing an independent pilot car operator to work with them.

You may also encounter contracts containing specific insurance requirements.

Don't assume that simply having an insurance policy means you've satisfied every customer's requirements. If a prospective customer gives you insurance specifications, review them carefully and provide them to your insurance professional when appropriate.

10. Think About How You'll Find PEVO Work

Insurance and equipment prepare you to operate, but you'll still need customers.

New PEVO operators may develop relationships with heavy-haul trucking companies, transportation companies, logistics businesses, brokers and others involved in moving oversize loads.

Networking within the industry can be valuable. So can building a reputation for reliability, professionalism, communication and safety.

When establishing your business, think about how customers will find and contact you. At minimum, have professional contact information and a way to quickly provide requested business and insurance documentation.

Over time, repeat relationships and referrals may become an important source of business.

11. Know Your Costs Before Setting Your Rates

One mistake new business owners can make is setting prices based primarily on what competitors appear to charge.

Your rates need to account for the actual cost of operating your business.

Expenses may include:

• Vehicle payments or depreciation

• Fuel

• Maintenance and repairs

• Tires

• Insurance

• Training and certification

• Equipment

• Business registrations

• Communications

• Lodging and meals when traveling

• Administrative and accounting expenses

• Taxes

• Unpaid travel or positioning time

Understanding your costs will give you a much better foundation for deciding what you need to charge for your services.

12. Be Ready Before Accepting Your First Job

Landing the first assignment is exciting, but that's not the time to discover that you're missing an important certification, piece of equipment or insurance requirement.

Before accepting work, make sure you understand the assignment, route, jurisdictional requirements and expectations of the company hiring you.

Have your business documents organized and make sure required insurance is in place.

New Pilot Car Business Checklist

Use this as a starting point as you prepare your business:

☐ Research PEVO requirements in your home state
☐ Research requirements in other states where you expect to work
☐ Complete applicable PEVO training or certification
☐ Establish your business structure
☐ Complete applicable business registrations
☐ Select an appropriate pilot/escort vehicle
☐ Obtain required signs, lights, flags and safety equipment
☐ Establish reliable communication capabilities
☐ Determine your commercial insurance needs
☐ Understand potential customer insurance requirements
☐ Have a process for obtaining Certificates of Insurance
☐ Establish a system for business and financial records
☐ Calculate your actual operating costs
☐ Begin developing industry and customer relationships
☐ Verify requirements before accepting your first assignment

Common Questions About Starting a Pilot Car Business

Do I need a special license to start a pilot car business?

Requirements vary by jurisdiction. Some states may require PEVO training, certification or other qualifications, while requirements elsewhere may be different. Verify current requirements with the appropriate authorities in every jurisdiction where you plan to operate.

Can I start a pilot car business with my personal vehicle?

The answer depends on the vehicle, applicable PEVO requirements and how it will be used and equipped. Using a personal vehicle for commercial PEVO work can also have insurance implications. Discuss the intended commercial use with an insurance professional rather than assuming an existing personal auto policy will cover it.

Do pilot car operators need commercial auto insurance?

Because a pilot or escort vehicle is being used for business purposes, commercial auto coverage is an important insurance consideration. The appropriate coverage will depend on the individual operation, vehicle, drivers, territory and other factors.

How much does it cost to start a pilot car business?

There isn't one standard startup cost. Your investment can depend on whether you already own an appropriate vehicle, the equipment you need, training and certification expenses, insurance costs, business registration expenses and the states where you plan to operate.

Rather than relying on a generic startup-cost estimate, create a budget based on your specific business plan.

Can I operate a pilot car business in more than one state?

Many PEVO operators work across state lines, but you should not assume that requirements are identical everywhere. Research certification, equipment, operating and other applicable requirements for each state where you intend to work.

When should I start looking for pilot car insurance?

Consider discussing insurance while you're setting up the business rather than waiting until you've already accepted your first assignment. That gives you time to understand coverage options and address insurance requirements prospective customers may have.

Where can a new pilot car business get insurance?

Working with an insurance agency familiar with PEVO operations can be particularly valuable for a start-up. Foundation Insurance & Risk Management works with new pilot car businesses and can help operators understand the insurance options available for their particular operation.

Building Your New PEVO Business

There's a lot to learn when starting a pilot car business, and you don't need to figure everything out in a single day.

Start with the fundamentals. Understand the work. Research the requirements where you intend to operate. Get appropriate training. Establish the business properly. Prepare your vehicle and equipment. Understand your costs. And address insurance before you're depending on the business for income.

Most importantly, don't be afraid to ask questions.

If you've reached the insurance stage and aren't sure what you need, Foundation Insurance & Risk Management specializes in helping new and start-up PEVO operators.

Visit our Pilot Car Insurance for New & Start-Up Businesses page or contact us to discuss your plans. Tell us where you are in the startup process, where you expect to operate and the type of pilot car work you're preparing to perform.

We'll help you work through the insurance side of getting your new PEVO business on the road.