Non-Trucking Liability Insurance

Driving the truck home after a load, to the shop on your own time, or on a personal errand, when you're not under the carrier's dispatch and not hauling for anyone.

NTL won't pay while you're under dispatch, carrying cargo or deadheading to a load for a business purpose. That's the carrier's primary liability.

Bobtail typically applies only when you're driving without a trailer, and some bobtail forms also cover non-business use. Ask your carrier which your lease requires.

People use the two names interchangeably, but policy wording differs. Non-trucking liability generally covers you when the truck is used for a non-business purpose, such as personal errands or driving home on your own time. "Bobtail" can mean driving without a trailer for any reason, and some forms cover that only when you're not under dispatch. If you're driving to pick up a load, you're usually under dispatch and the motor carrier's primary policy should apply. Read the exact exclusions in your policy.

NTL is liability only. It doesn't cover damage to your own truck (that's physical damage) or your own injuries (that's occupational accident).

Leased owner-operators, whose motor carrier's lease requires it. If you have your own authority, your primary liability policy already covers non-business use, so NTL isn't needed. Carriers usually set a minimum limit, often $1,000,000 combined single limit, and require them to be named as certificate holder.

NTL is one of the cheapest trucking coverages because the exposure is limited. Price still depends on garaging location, driver record and limit. Make sure the certificate goes to the carrier before your first dispatch, and cancel or change it when you leave the lease so you don't leave a gap. See truck insurance cost.

Have these ready: your USDOT and MC numbers, the VIN, year and value of each truck and trailer, every driver's license number and date of birth (insurers pull MVRs), commodities with percentages, your radius and states, and 3–5 years of loss runs from prior insurers if you have them.

Underwriters also check your FMCSA record. That covers inspection and out-of-service history and safety ratings (public on SAFER) and crash history. Fixing data errors through FMCSA's DataQs system before you shop can make a real difference.

An agency that works with several trucking markets can compare them. Specialty markets and non-standard insurers accept new authorities and drivers with blemishes that standard carriers decline. See truck insurance cost for what moves price.

Make sure everyone is safe, call police when anyone is injured or vehicles must be towed, and photograph the scene, the vehicles, the load and the seal. Get the other parties' insurance information. Don't admit fault or sign anything except the police and inspection paperwork. Report the claim to your agent or insurer right away; most policies require prompt notice, and a late report can complicate coverage.

Under FMCSA rules (49 CFR 390.15), qualifying crashes must be recorded in your accident register, and drivers involved in certain crashes must be drug and alcohol tested under Part 382. For cargo, keep the bill of lading, delivery receipt notations, reefer download (if any) and photos. Exceptions noted at delivery are often what decides a cargo claim.

Brokers, shippers, warehouses and port equipment providers will ask for a certificate of insurance, often naming them as certificate holder or additional insured. Some also want a waiver of subrogation or specific limits. Send the contract to your agent before you sign, because a promise you make in a contract that your policy doesn't match is your problem, not the insurer's. Common requests include $1,000,000 auto liability, $100,000 cargo, general liability and trailer interchange for drayage.

Most coverage problems come from paperwork, not accidents. Add new trucks and drivers to the policy before they run, remove sold units, report radius or commodity changes, and pay installments on time. A cancellation for non-payment triggers an FMCSA filing cancellation and can take your authority down (see FMCSA insurance requirements). At renewal, request loss runs from your current insurer early so we can shop with them in hand.

When a lease ends, the motor carrier's primary liability stops covering you. If you'll keep driving the truck, line up your own authority and primary liability or a new lease first.

• eCFR – 49 CFR Part 376, Lease and interchange of vehicles
• Schneider – How much is semi-truck insurance for owner-operators?