What is Bobtail Insurance?
Bobtail insurance, which is also known as non-trucking liability insurance, is an essential form of coverage for owner-operators and other fleet operators in the transportation industry. Owner-Operator Bobtail Insurance provides coverage to a truck when it's being operated without a trailer attached, not hauling freight, and is not under dispatch. It's critical for the drivers that own their trucks and even those who only occasionally drive without a trailer, like during downtime between loads, to purchase non-trucking liability insurance or bobtail truck insurance. Without this coverage, they may be held financially liable should they be involved in an accident.
What is the Purpose of Owner-Operator Truck Insurance
The primary purpose of Insurance for Owner Operators is to protect an owner-operator from liability exposure when driving their truck without a trailer attached, also known as "deadheading." In addition, this type of policy will provide a layer of protection for the driver if they have an accident or cause damage while operating their vehicle without the trailer. When this happens, the costs associated with repairing or replacing any damaged property can quickly skyrocket.
What are the Types of Insurance Policies for Trucking Companies
There are two central trucking liability insurance policies that cover an owner-operator: primary liability and non-trucking liability. Primary liability for Owner Operators is usually provided by the motor carrier they lease on. It can provide coverage for liability claims resulting from accidents involving your vehicle while you are under dispatch. Non-Trucking Liability Bobtail Insurance usually provides the same coverage limit as the primary liability but is more limited due to when the coverage will pay for a claim. Non-trucking liability will only consider coverage for losses that occur while operating a covered power unit, and you are not under dispatch.
While both policies will help protect you and your business financially if something were to go wrong, Non-trucking liability (Bobtail) insurance provides coverage to cover your truck while you are not using it for work.
It's important to remember that most traditional primary liability policies provided by a motor carrier will only provide coverage for commercial vehicles when they're being used for business purposes or when a trailer is attached and hauling freight. Therefore, it is best to invest in bobtail insurance if you operate a commercial vehicle while not under dispatch, even if it's occasionally. If you have any questions about Insurance for Owner Operators, please give us a call to speak with one of our dedicated agents!