It is important to understand truck insurance coverage as best as possible because it is something that is heavily regulated and may affect a driver’s contracts or employment. One of the most important aspects of truck insurance is to understand the difference between Primary Liability and Non-Trucking Liability, which is sometimes referred to as Bobtail Liability.
Primary Liability
Primary Liability is the main truck insurance coverage that a driver will have. In most cases, if the driver is working for a carrier or fleet of trucks, the Primary Liability of the company will cover the truck. Primary Liability is required in order to legally operate a truck.
Non-Trucking Liability
Non-Trucking Liability covers damages or accidents resulting when the Primary Liability is not in effect. This means that an owner-operator who is leased to a carrier will not be covered by the Primary Liability of the carrier when off-duty, or not in transport. It is necessary at these times for the owner-operator to have secondary truck insurance to protect him when not covered by the carrier’s insurance, which is the purpose of Non-Trucking Liability.
Bobtail Liability
Carriers will require drivers to have Non-Trucking Liability or Bobtail Liability. These two terms are usually used interchangeably, but are not actually the same thing. Non-Trucking Liability covers losses that occur when the driver is not dispatched, while Bobtail Liability covers damages that occur when a trailer is not attached to the truck, regardless of whether or not the driver is dispatched.
The contract that a carrier offers often stipulates that either Non-Trucking Liability or Bobtail Liability is required. As Bobtail Liability is not commonly available anymore, it is important to ask whether Non-Trucking Liability is sufficient when Bobtail Liability is required. Most often the answer will be yes.
Cover Me Insurance Agency (CMIA) is a full service truck insurance agency and is dedicated to providing the highest quality and most efficient truck insurance service with a personal touch. Our agents have 20 years experience working with small fleet and owner operators.
To get the best commercial insurance rate for truck insurance, just give us a call today at 1-888-849-7273 or fill out our online truck insurance quote form.