Non-Trucking Liability Insurance
Non-Trucking Liability insurance is sometimes also called Contingent Liability insurance. It is also sometimes referred to as Bobtail insurance.
Non-trucking Liability Insurance protects owner-operators when they are not actually hauling.
When you are under permanent lease to a motor carrier who provides your Liability insurance, their insurance typically only protects you while you are driving under dispatch. This is called your Primary Liability insurance, and proof of this insurance is required to purchase Non-Trucking Liability insurance.
Non-Trucking Liability insurance provides coverage in case you cause an accident while you are using your vehicle for non-business or personal use. The insurance will pay:
- Medical and associated expenses for injuries or even death that you cause to other people, including:
- Hospital and medical bills
- Rehabilitation
- Long-term nursing care
- Funeral expenses
- Lost earnings and other damages
- The expense for any damage caused to other peoples' property, including:
Non-Trucking Liability insurance does not apply when the vehicle is being used to transport any goods or merchandise or while merchandise is being loaded or unloaded.
Who Needs Non-Trucking Liability Insurance?
Non-Trucking Liability insurance is for owner-operator truckers who are under permanent lease to an authorized motor carrier.
If you are actively seeking lease on, or are thinking about leasing yourself but are not yet in possession of a leasing agreement, you may still want Non-Trucking Liability insurance to protect you until you are under lease. This coverage will not protect you, however, if you perform any hauling activities while not under lease to an authorized motor carrier.
Caution: If you are hauling non-owned goods for others and you get into an accident, Non-Trucking Liability insurance will not cover damages to the load.
Non-Trucking Liability Insurance Limits and Other Details
Non-Trucking Liability is very similar to regular Liability insurance. You must pick a limit that determines the maximum amount your insurance company will pay if you use this insurance coverage. For example, if you chose a split limit of $500,000/$1,000,000/$200,000:
- The first number is the maximum payout for each person injured in an accident.
- In this case, your insurance would pay each injured person up to $500,000 for medical and related expenses.
- The second number is the maximum total payout for all injuries to other people in an accident.
- In this case, your insurance would pay a maximum total of $1 million to all injured people. This could mean paying 100 people $1,000 each or two people $500,000 each.
- The third number is the maximum total payout for all property, other than yours, that is damaged in an accident.
- In this case, your insurance would pay a maximum of $200,000 for all other property that was damaged.
Non-Trucking Liability Insurance Example
You are off dispatch and driving your truck for personal reasons when you sideswipe the car in the lane next to you.
No one is seriously injured, but the side of the car is scraped and the driver has a large bump on her forehead from where she banged it on the window.
Your regular Liability insurance won't cover this accident since you were off duty when it happened. Your Non-Trucking Liability insurance, however, will protect you.
If you chose limits of $500,000/$1,00,000/$200,000, your Non-Trucking Liability would pay for:
- The other driver's medical bills to have the lump on her head checked out, up to $500,000.
- The repairs to the other car, up to $200,000.
Since there was only one person injured in the accident, the $500,000 injury limit doesn't make a difference. And, since none of the expenses incurred in this accident exceed your limits, your insurance would cover the all of these costs.
Non-Trucking Liability Insurance Exceptions and Restrictions
Non-Trucking Liability insurance can only be purchased if Physical Damage insurance also is selected.
Physical Damage insurance, Medical Payment insurance and other insurance coverages selected in conjunction with Non-Trucking Liability will protect the vehicle at all times.
Non-Trucking Liability cannot be chosen in conjunction with the following insurance coverages:
The following are ineligible for Non-Trucking Liability insurance:
Trailers
- Non-Trucking Liability insurance will extend for an owned trailer, whether it is listed on the policy or not.
- Physical Damage insurance must also be purchased for the trailer.
Vehicles
- If you have multiple vehicles and one vehicle has Non-Trucking Liability insurance, all vehicles must have it.
Non-Trucking Liability Insurance State-Specific Details
Non-Trucking Liability insurance is not available in all states and situations. Contact us to learn more.
Bobtail Insurance
Non-Trucking Liability insurance is sometimes called Bobtail insurance. However, Bobtail insurance is not truly the same thing as Non-Trucking Liability insurance.
Bobtail insurance typically protects the tractor when it's being operated without a trailer, regardless of whether or not it's under dispatch. Non-Trucking Liability, however, protects the tractor when it's being operated off dispatch, regardless of whether or not it's pulling a trailer.