What is the Difference Between Non-Trucking Liability and Bobtail Insurance?

When it comes to trucking as a business, the right insurance coverage is necessary. Bobtail Insurance and Non-Trucking Liability Insurance are two of the most confusing types of insurance. While they’re frequently mixed up, they serve different purposes and protection. Let’s clarify the difference between the two and help you get the proper coverage for your business.

Understanding Bobtail Insurance

Bobtail insurance insures a truck while it is being operated without a trailer, regardless of whether the driver is under dispatch or not. It primarily provides liability coverage in the case of accidents happening when the truck is not hauling cargo but is being operated for business reasons nevertheless.

Comprehending Non-Trucking Liability Insurance (NTL)

Non-Trucking Liability Insurance, or NTL, is coverage for a truck when it is being operated for personal use or non-business. Unlike bobtail insurance, NTL only applies when the truck is completely off duty and not performing any work-related activities.

Primary Differences Between Bobtail and Non-Trucking Liability Insurance

Bobtail insurance offers coverage to truck drivers when they are operating their rig without a trailer, even when they are under dispatch. This is ideal for owner-operators who often drive from haul to haul without a load. Non-trucking liability insurance, on the other hand, is designed for truckers who use their vehicle for personal purposes when they are completely off the clock. Non-trucking liability coverage does not provide coverage for the truck when it is used for business, as opposed to bobtail insurance.  The other primary difference is that bobtail insurance is typically required by motor carriers, specifically for leased owner-operators, while non-trucking liability insurance may be voluntary depending on the trucking company’s policy. In addition, bobtail insurance does not cover personal use, while non-trucking liability specifically offers coverage when the truck is operated for non-business use. Both coverages provide liability coverage but under different conditions, so it is crucial for truckers to have the right insurance for their specific situation.

Is a Bobtail a Commercial Vehicle?

Yes, a bobtail truck is still considered a commercial vehicle, even when not attached to a trailer. It is essential for truckers who regularly drive without a trailer in between hauls or after dropping off a load.

Do Private Carriers Need Motor Truck Cargo Insurance?

Yes. Private carriers transporting goods for their own company should purchase Motor Truck Cargo Insurance to offer protection against loss or damage to the cargo in transit.
If the box truck is hauling hazardous materials, a hazmat endorsement (H) is also required.

What Does Trucking Liability Insurance Cover?

Trucking liability insurance covers bodily injury and property damage caused by a commercial truck utilized in business operations. It is typically required for all business trucking ventures.

Is Non-Trucking Liability the Same as Physical Damage Insurance?

No, they are not identical. Non-Trucking Liability Insurance offers liability coverage for personal use, and Physical Damage Insurance offers coverage for damage and repairs to the truck itself.
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What Is a Non-Trucking Liability Policy Designed to Cover?

An NTL policy is designed to offer protection for accidents and liability while a truck is being driven for non-business purposes, such as personal chores or driving home from a haul.

Does Liability Insurance Cover Uninsured Drivers?

No, a standard liability insurance will only cover insured and approved drivers listed on the policy. Allowing an uninsured driver to drive your truck can leave you personally responsible for any accident or damages.

Get the Right Coverage for Your Trucking Company

It is essential to understand the difference between Bobtail Insurance and Non-Trucking Liability Insurance so that you can ensure you have the right coverage both on and off the job. At Commercial Pro Shield Insurance, we specialize in providing customized trucking insurance solutions to keep you covered.
Call us today at (239) 288-0656 to get a customized quote and shield your business with the right coverage!