Non-Trucking Liability Insurance (NTLI) supplies protection in case you trigger a mishap while you are utilizing your car for non-business or personal use besides carrying products or product. Non-Trucking Liability protection from a California truck insurance agency does not apply when you are pulling a loaded trailer, operating on behalf of a motor provider/ leasing company, or using a car for any profits generating purpose. These kinds of activities are covered by main liability coverage. If a motor provider is offering your primary liability protection, their coverage will not apply when you are not under dispatch and you’ll need non-trucking liability protection.
Non-Trucking Liability Insurance offers a defense for:
- The owner-operator, for liability, when driving the tractor while not in the business of trucking;
- The motor carrier, from liability when a completely rented contract driver is not under dispatch.
Exactly what is Non-trucking Liability Insurance, or as we call it, NTLI?
Frequently referred to as bobtail insurance, NTL is liability insurance for the owner/operator when he is running his business motor vehicle NOT under dispatch. NTL is in most cases, required by the motor carrier with whom the owner/operator has signed a lease arrangement. This insurance fills a potential space for non-business use of the equipment, and assists to protect the motor provider’s primary liability policy. Non-trucking is not the same as bobtail insurance, so please validate with your motor carrier which protection they need; in almost all cases, the requirement will be NTL.
Why do I need Non-Trucking Liability Insurance?
When an owner/operator leases on to a motor provider, the business auto liability policy of that motor carrier will offer coverage while the owner/operator is under dispatch. Because the rented operator owns the devices, there are times when that car may be operated not under dispatch; non-trucking liability offers coverage if you were to harm another individual’s residential or commercial property or even injure them throughout the individual use of your business lorry.
When does non-trucking liability coverage start?
Usually speaking, non-trucking liability is protection for non-business usage therefore, the motor carrier’s liability policy will cover you from the dispatch point, through pick-up and delivery and back to point of origin. Any personal usage in between your return and the next dispatch should be covered under NTL.
Bobtail Liability — Operating your truck without a trailer is frequently referred to as “bobtailing” or “Deadheading.” Bobtail liability protection is protection for leased owner-operators that provides insurance protection when your truck is being operated without its trailer connected, whether or not you have actually been dispatched by your provider. This kind of insurance would cover you, for instance, if you deliver a load to a terminal and after that chauffeur into another town to pick up
a various load there. You would also be covered while you were traveling in your truck to and from work or to and from the repair shop. As noted formerly, this protection is omitted if you are pulling a trailer.
Non-Trucking Liability Insurance — This type of protection is frequently utilized interchangeably with bobtail liability, but they are not truly the exact same. Non-trucking liability protection is developed to protect rented owner operators versus liability claims that happen when you are operating your truck for individual or non-business use. This kind of insurance covers you if, for example, you take your household for a leisure ride in your truck. Protection is omitted if you are driving under the direction of your career. It is likewise not applicable till you have actually gone back to your concept garage location.
Unladen Liability — This coverage is a more recent kind of insurance. It has ended up being more popular since it offers you with increased versatility of security. While wider in scope with regard to protection than either bobtail or non-trucking liability, it can be more costly. Unladen insurance coverage offers you with liability insurance when your truck is being run with the trailer attached. It will also cover you when you run the truck without the trailer, despite whether you have been dispatched by your provider. As you can probably tell from the meaning, unladen liability insurance will cover your when you are bob-tailing (deadheading) to and from the terminal or in between loads.
Under the law, it is the responsibility of the licensed motor carrier to supply liability security for the general public. As an owner operator, you should not have to preserve your own liability insurance like Strong Tie Insurance Services commercial insurance. The reality is that motor carriers typically search for methods to reduce their burden for the degree of liability that they are accountable for. They accomplish this by needing the rented owner operator to launch them of this problem in particular circumstances (bob-tailing, individual use, or in between loads, etc.). These situations are generally defined in the contracts or lease arrangements. As you can see, this is another reason that you should read and comprehend your lease contract completely.
Protections might vary by state and by the insured organization. Consult your representative about coverages you might need for your special circumstance. Coverage descriptions above are for general info only. Actual coverage is subject to all terms, conditions, and exclusions of the policy.