Bobtail and non-trucking liability

How do bobtail and non-trucking liability work for an owner-operator?

These two coverages come up when you own a tractor and lease it, with your driving, to another carrier. When you haul under that carrier's authority and dispatch, that carrier is the one responsible for the public liability coverage the federal rules require. Federal leasing rules say the lease between an authorized carrier and the equipment owner must clearly specify the carrier's legal obligation to maintain insurance for the protection of the public, and must specify who provides any other coverage for the equipment, "such as bobtail insurance." Federal rules also require the carrier-lessee to have exclusive possession, control, and use of the equipment for the duration of the lease.

That leaves gaps for the times you are driving the tractor but not hauling a load for the carrier. The two coverages address different gaps, and they are not interchangeable. In general terms:

How the terms are defined, and which situations count, varies by insurer. Some policies combine the two under one name, some separate them, and some leave gaps between them. Read the definitions.

Leased on versus under your own authority. This is the distinction that matters most.

• Leased on to a carrier. The carrier's policy generally responds while you are hauling under its authority and dispatch. Bobtail and non-trucking liability fill the gaps around that use, and the lease usually says which one the carrier requires you to have.
• Under your own authority. You are the motor carrier. You need primary auto liability that meets the federal and contract requirements for the work you do. Bobtail or non-trucking liability is not a substitute, and a policy written for a leased-on owner-operator may not respond the way a primary policy does when you run on your own authority.

What do bobtail and non-trucking liability cover, and what don't they?

Policies vary. Read your declarations, definitions, and exclusions. In general:

Often covered

• Bodily injury and property damage you cause to others while using the tractor in the situation the policy describes, up to its limit
• Legal defense for covered claims, under many policies

Often not covered

• Hauling under dispatch. When you are hauling or under dispatch for the carrier, the carrier's primary liability is generally what responds. A bobtail or non-trucking policy may exclude that use.
• Use under your own authority. Often excluded or not what the policy was written for.
• Damage to your own tractor. That is physical damage.
• Freight. That is motor truck cargo.
• Injuries to you. That is occupational accident or another personal coverage, not liability.
• Business use of any kind, under many non-trucking liability policies. The policy defines what counts as business use.

Assuming a coverage applies in a situation where it doesn't is how owner-operators end up with a gap at the worst time. Ask your insurance agent to walk through specific situations, such as driving to pick up a trailer or returning from a delivery, and ask for the answer in terms of the policy's wording.

What affects the cost of bobtail or non-trucking liability?

We don't publish prices. Cost is set by insurers and the licensed agents you work with. The factors that generally move it:

• Which coverage you need. Bobtail, non-trucking, or a combination, and how the policy defines each
• Limits. The liability limit your lease or carrier requires
• Your driving record and years of experience
• The tractor. Age, type, and where it's kept
• How you use it between dispatches. Personal use and travel distance
• Your lease. Requirements the carrier puts on limits, deductibles, and named insureds
• Claims history

Who typically needs bobtail or non-trucking liability?

• Owner-operators leased onto a carrier: This is the main audience. Read the lease first, since it should say who carries what.
• New authority: If you plan to get your own authority later, remember these coverages don't carry over as primary liability.
• OTR and local haul: Time between dispatches and miles without a trailer both add situations to ask about.
• Small fleets: If you lease some of your units onto other carriers, each lease may call for its own coverage.