Coverage Center
Non-Trucking Liability
A coverage option some leased owner-operators consider for qualifying personal use of a truck when it is not being used in the business of trucking.
Understanding the Coverage
What Non-Trucking Liability Can Address
Non-trucking liability, often called NTL, is liability coverage that may apply when a qualifying leased owner-operator uses a covered truck for personal, non-business purposes. It is commonly considered when the motor carrier’s primary liability policy applies while the truck is being used in that carrier’s business.
Whether NTL is appropriate depends on the lease arrangement, dispatch status, use of the truck, policy wording and other facts. It is not a replacement for primary auto liability, and it is not a coverage every owner-operator needs.
Key Considerations
When the Details Matter
Who Commonly Considers It
Leased owner-operators may ask about NTL when they have access to a truck outside dispatched work for a motor carrier. The lease and the carrier’s insurance arrangements should be reviewed carefully.
Qualifying Non-Business Use
Coverage may be limited to personal use that is not in furtherance of a trucking business. Deadheading, traveling to pick up a load, or other business-related activity may not qualify.
Underwriting Considerations
Underwriters may request details about the lease, motor carrier, garaging location, driving history, truck ownership, intended use and existing insurance. Terms vary by carrier and policy.
Common Questions
NTL and Bobtail Coverage
“Bobtail insurance” is a common industry term, but it is not always used consistently. Some people use it to describe non-trucking liability; others use it more narrowly to refer to operating a tractor without a trailer. The policy language controls.
Not the Same as Primary Liability
Primary auto liability is generally intended for covered business use of commercial vehicles. NTL may address a different, qualifying personal-use exposure and should be coordinated with the motor carrier’s program.
Business Use Can Be Excluded
A trip can be “bobtail” because no trailer is attached and still be business-related. The absence of a trailer alone does not determine whether NTL applies.
Related Coverages
Owner-operators may also consider physical damage, motor truck cargo, occupational accident, trailer interchange, general liability or other coverages depending on their operation and contractual requirements.
Review the Lease and Policy
Coverage triggers, exclusions, limits and definitions vary. Review the lease agreement, dispatch expectations and policy terms with an insurance professional before relying on any coverage.